Consumer complaint received 2020-07-22 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: PENTAGON FEDERAL CREDIT UNION
State: NC

Complaint narrative:
I applied for and received a pre-approval letter with PenFed on XXXX. I requested it be adjusted at XXXX Monday on XX/XX/XXXX to match the offer amount I was submitting to a seller to show the capacity to purchase the home. I needed to submit the offer quickly due to the competitive nature of the market but did not receive it until XXXX Thursday on XX/XX/XXXX even though I called in attempting to reach my Loan Officer ( LO ) to get it sooner. Luckily the sellers accepted the contract without the approval letter. I submitted the ratified sales contract to PenFed on Thursday XXXX on XX/XX/XXXX and asked about the appraisal process and next steps. It was in the contract and I had alerted PenFed the Due Diligence period ended XX/XX/XXXX and I needed to get the appraisal by then otherwise I would have to either pay the Earnest Money not knowing if the home value would support the loan, ask the sellers to amend the sales contract, or back out of the deal after having spent over {$2700.00} already on the home inspection, a septic inspection, the survey, the Due Diligence money, and the REQUEST for an appraisal that I could not get any feedback on whether it was scheduled or not. After slow or no response from the first LO about next steps and how do I lock the rate in, I got through to a different LO in a call center and was able to get some information about the process. I asked to be changed to her since she was quite helpful ( unfortunately the exception right now with PenFed instead of the norm ) and she let me know that I needed to work with the Processing Department to find out more about the appraisal. I had called and emailed the assigned processer each day between XXXX & XX/XX/XXXX plus my realtor was calling and emailing the processer too. It was not until we cc'ed my LO, another contact in PenFed believed to be a manager, and I titled the email subject line " 3rd REQUEST for info on the Appraisal for ... '' that we got a brief response on Friday XX/XX/XXXX from the processer to my realtor that they were looking into it and they will call shortly. " Shortly '' turned into a response the following Friday XX/XX/XXXX despite more attempts by my realtor and I to contact the processer via email and phone. During that week of panic as the Due Diligence period closed and we were in the dark about what was going on with the appraisal, we successfully negotiated an amendment with the sellers to extend the Due Diligence period to XX/XX/XXXX but their patience was growing thin. During the call to me on Friday XX/XX/XXXX, the processer let me know the appraisal is scheduled to be complete by XXXX. I requested on the phone that this issue be escalated with management and that they try to expedite the appraisal so it was completed by XX/XX/XXXX. The processer said they would follow up on it that day and let me know what was the outcome of the request. My realtor also requested via email that it be escalated and now the XX/XX/XXXX Due Diligence deadline is approaching. Once again, I will be forced to put more money into the deal ( another {$1500.00} for the Earnest Money ) not knowing whether the property will appraise out and support the deal or risk losing the deal. 

Also, of note, during this process on XX/XX/XXXX I have requested a formal complaint on this matter be opened up with PenFed 's Compliance Department but I have yet to hear anything about that. Since I have not heard anything back on that, I have sent my complaint today to PenFed 's Board and their Board 's Audit Committee in hopes that someone  there will respond to my requests. 

Lastly, I realize these are unprecedented times with the pandemic and historically low rates but if PenFed can not provide some basic level of service, they should not take on the applications. All of this could have been avoided with a simple " sorry we're really busy but we've called the appraisal company as promised and haven't heard back from them '' or a " sorry for the inconveniences and slow service, we'll knock a {$250.00} off your closing cost '' or something like that since they pretty much have you locked up in the mortgage process once you get to a certain point. At this point, Im at the mercy of PenFed but hope someone there or one of their regulators will help get a response and even better, get them to get the appraisal escalated after having weeks to get it down.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation