Consumer complaint received 2025-08-12 00:00:00
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — Delays with the closing process
Company: NAVY FEDERAL CREDIT UNION
State: VA

Complaint narrative:
In XX/XX/year>, I applied with Navy Federal Credit Union ( NFCU ) to assume a VA loan with a balance of approximately {$530000.00}. My assigned loan XXXX, XXXX, informed me I did not have enough entitlement to assume the loan but did not explain why. I called the Department XXXX XXXX XXXX XXXX VA ) several times, and each time they confirmed that I had more than enough entitlement to assume the loan. I emailed XXXX with this confirmation from the VA along with detailed entitlement calculations and documentation showing I had sufficient entitlement to assume over {$580000.00}, but she never challenged my math or provided an alternative calculation. She later stated my entitlement was insufficient but offered that I could bring approximately {$3400.00} to closing to cover the gap and proceed with the assumption. Relying on this guidance, we sold our home and prepared to close. 
Shortly thereafter, the assumption was denied. I appealed the decision, and XXXX XXXX conducted an internal audit that included listening to recorded phone conversations between myself and the loan XXXX, as well as reviewing all email correspondence. The audit confirmed I was given incorrect information multiple times. Navy Federal then offered to initiate a new VA loan and honor the XXXX XXXX interest rate from the assumption. However, they required me to reapply from scratch for the new loan, which included pulling my credit again. Based on these assurances, I moved forward, believing the matter was resolved. 
Once the new loan was in process, Navy Federals pricing team refused to honor the agreed XXXX XXXX rate. This decision was upheld by supervisors despite prior promises. The issue was escalated to NFCUs compliance team, which is now reviewing whether any policies or regulations were violated.

This process dragged on for nearly three months. During that time, the sellers of the home we were purchasing almost terminated the contract after we had already sold our home. To keep the deal alive, we had to negotiate a rental agreement while the matter was being investigated. Navy Federal never fixed the issues they created, forcing us to take drastic measures to secure the purchase. 
To complete the transaction, we were forced to pay off a rental property to free up our VA entitlement ( requiring us to get money from family members and liquidate assets ). These asset sales will result in thousands of dollars in taxes, and we will now have to refinance that rental property at an interest rate over XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 
Navy Federal repeatedly assured us the loan would be approved, causing us to release contingencies on the sale of our home, only to reverse course and put us at serious risk of having no housing. This has caused severe emotional and financial harm to my family and to XXXX other XXXX XXXX military families involved in the transaction. 
When discussing compensation, an NFCU representative initially mentioned around {$10000.00}. Weeks later, they offered only {$1000.00}, despite acknowledging their mistakes through the internal audit. This token offer was both insulting and reflective of a lack of accountability. I believe Navy Federals actions demonstrate misrepresentation, negligence, and a failure to adhere to VA loan guidelines, and I am seeking corrective action and fair compensation for the significant damages incurred.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation