Consumer complaint received 2026-04-07 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: NAVY FEDERAL CREDIT UNION
State: SC

Complaint narrative:
FORMAL COMPLAINT WITH LEGAL GROUNDS AND REGULATORY REFERENCES Complainant : XXXX XXXX XXXX : Navy Federal Credit Union XXXX XXXX Loss Mitigation Mishandling, Servicing Violations, and Foreclosure Risk I. INTRODUCTION This complaint alleges violations of federal mortgage servicing regulations under Regulation X ( 12 CFR Part 1024 ) and Regulation Z ( 12 CFR Part 1026 ) arising from the mishandling of my loss mitigation application, inconsistent servicing practices, failure to provide continuity of contact, and ongoing foreclosure-related risk while my application remains unresolved. XXXX. SUMMARY OF CORE VIOLATIONS The Respondents conduct demonstrates potential violations of : 12 CFR 1024.41 Loss Mitigation Procedures 12 CFR 1026.40 Continuity of Contact 12 CFR 1024.35 Error Resolution Procedures 12 CFR 1024.38 General Servicing Policies and Procedures 12 CFR 1024.36 Requests for Information 12 CFR 1026.36 Mortgage Servicing Rules ( Payment Processing ) 12 CFR 1026.41 Periodic Statements XXXX. FACTUAL INCIDENTS AND APPLICABLE VIOLATIONS XXXX. Mishandling and Delayed Processing of Loss Mitigation Application Applicable Regulation : 12 CFR 1024.41 Loss Mitigation Procedures Incident : I submitted a complete loss mitigation package since XXXX. Despite repeated submissions, the application has not been properly reviewed or finalized. Documents were repeatedly requested again after submission. I was instructed that the application was near completion, then required to restart the process. Violation Analysis : Failure to properly review a complete application within required timelines. Repeated resetting of the review process without clear deficiency notices. Failure to provide a consistent evaluation of submitted documents. XXXX. Inconsistent and Conflicting Documentation Requirements Applicable Regulations : 12 CFR 1024.38 Servicing Policies and Procedures 12 CFR 1024.41 Loss Mitigation Procedures Incident : I was told a job offer letter was sufficient, then later rejected for missing details. I was informed documents were acceptable, then later required to resubmit with additional criteria. Notarization instructions were changed after compliance. Requirements varied depending on the representative. Violation Analysis : Failure to maintain consistent servicing standards. Failure to establish and follow standardized procedures for document review. Imposition of shifting requirements causing unnecessary delay. XXXX. Lack of Continuity of Contact / Multiple Conflicting Representatives Applicable Regulation : 12 CFR 1026.40 Continuity of Contact Incident : My case has been handled by multiple representatives with no single point of contact. I received conflicting instructions from different personnel. I requested a dedicated specialist but was not consistently assigned one. Communication breakdowns occurred between representatives reviewing my file. Violation Analysis : Failure to provide a single point of contact or designated team. Failure to ensure consistent communication and case management. Borrower was forced to repeat information multiple times due to lack of coordination. XXXX. Failure to Properly Address Document Errors and Requests Applicable Regulation : 12 CFR 1024.35 Error Resolution Procedures 12 CFR 1024.36 Requests for Information Incident : Documents submitted were not properly acknowledged or tracked. Errors in documentation were identified late rather than during initial review. Repeated requests for the same or similar documents occurred without clarification. I requested confirmation of received documents but did not receive clear resolution. Violation Analysis : Failure to reasonably investigate and correct servicing errors. Failure to provide accurate and complete responses to borrower inquiries. Lack of transparency in document tracking and file status. XXXX. Failure in General Servicing Practices and Recordkeeping Applicable Regulation : 12 CFR 1024.38 General Servicing Policies and Procedures Incident : Documents were accepted and later deemed insufficient without clear initial review. Internal inconsistencies suggest inadequate recordkeeping or review processes. No clear audit trail or consistent documentation status was provided. Violation Analysis : Failure to maintain policies ensuring accurate document handling. Failure to properly record, track, and communicate application status. Breakdown in internal servicing procedures. XXXX. Potential Dual-Tracking and Foreclosure Risk Applicable Regulation : 12 CFR 1024.41 Incident : Foreclosure activity is ongoing while my loss mitigation application remains unresolved. No final determination has been made on my application despite submission of required documents. Violation Analysis : Proceeding with foreclosure-related actions while a complete application is under review may constitute prohibited dual-tracking. Lack of proper resolution prior to advancing foreclosure proceedings. XXXX. Payment and Account Handling Concerns ( If Applicable ) Applicable Regulations : 12 CFR 1026.36 Payment Processing 12 CFR 1026.41 Periodic Statements Incident : Account status has been difficult to verify due to inconsistent servicing communication. Statements and account updates have not clearly reflected the status of my loss mitigation review. Violation Analysis : Potential failure to properly apply or communicate payment/account information. Lack of clarity in periodic statements regarding account status. IV. HARM CAUSED As a result of these servicing failures : I face ongoing risk of foreclosure My ability to resolve my mortgage has been significantly delayed I have experienced financial, emotional, and household hardship My household stability has been impacted, including medical considerations for my dependent V. RELIEF REQUESTED I respectfully request : Immediate assignment of a single qualified point of contact Immediate suspension of foreclosure activity pending review of my application A full and final review of my loss mitigation application under 12 CFR 1024.41 Written confirmation of all documents received and status of my file A complete and final list of any deficiencies ( if any exist ) Correction of servicing errors under 12 CFR 1024.35 Compliance with continuity of contact requirements under 12 CFR 1026.40 Written explanation of all actions taken on my account VI. NOTICE OF FURTHER ACTION If these violations are not corrected promptly, I reserve the right to pursue : Additional complaints with federal regulators Escalation through formal enforcement channels Legal remedies for servicing violations and foreclosure-related harm Submitted by : XXXX XXXX XXXX XX/XX/year> XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX XXXX FORMAL COMPLAINT WITH LEGAL GROUNDS AND REGULATORY REFERENCES Complainant : XXXX XXXX XXXX XXXX Navy Federal Credit Union XXXX XXXX XXXX XXXX XXXX, Servicing Violations, and Foreclosure Risk I. INTRODUCTION This complaint alleges violations of federal mortgage servicing regulations under Regulation X ( 12 CFR Part 1024 ) and Regulation Z ( 12 CFR Part 1026 ) arising from the mishandling of my loss mitigation application, inconsistent servicing practices, failure to provide continuity of contact, and ongoing foreclosure-related risk while my application remains unresolved. XXXX. SUMMARY OF CORE VIOLATIONS The Respondents conduct demonstrates potential violations of : 12 CFR 1024.41 Loss Mitigation Procedures 12 CFR 1026.40 Continuity of Contact 12 CFR 1024.35 Error Resolution Procedures 12 CFR 1024.38 General Servicing Policies and Procedures 12 CFR 1024.36 Requests for Information 12 CFR 1026.36 Mortgage Servicing Rules ( Payment Processing ) 12 CFR 1026.41 Periodic Statements XXXX. FACTUAL INCIDENTS AND APPLICABLE VIOLATIONS XXXX. Mishandling and Delayed Processing of Loss Mitigation Application Applicable Regulation : 12 CFR 1024.41 Loss Mitigation Procedures Incident : I submitted a complete loss mitigation package since XXXX. Despite repeated submissions, the application has not been properly reviewed or finalized. Documents were repeatedly requested again after submission. I was instructed that the application was near completion, then required to restart the process. Violation Analysis : Failure to properly review a complete application within required timelines. Repeated resetting of the review process without clear deficiency notices. Failure to provide a consistent evaluation of submitted documents. XXXX. Inconsistent and Conflicting Documentation Requirements Applicable Regulations : 12 CFR 1024.38 Servicing Policies and Procedures 12 CFR 1024.41 Loss Mitigation Procedures Incident : I was told a job offer letter was sufficient, then later rejected for missing details. I was informed documents were acceptable, then later required to resubmit with additional criteria. Notarization instructions were changed after compliance. Requirements varied depending on the representative. Violation Analysis : Failure to maintain consistent servicing standards. Failure to establish and follow standardized procedures for document review. Imposition of shifting requirements causing unnecessary delay. XXXX. Lack of Continuity of Contact / Multiple Conflicting Representatives Applicable Regulation : 12 CFR 1026.40 Continuity of Contact Incident : My case has been handled by multiple representatives with no single point of contact. I received conflicting instructions from different personnel. I requested a dedicated specialist but was not consistently assigned one. Communication breakdowns occurred between representatives reviewing my file. Violation Analysis : Failure to provide a single point of contact or designated team. Failure to ensure consistent communication and case management. Borrower was forced to repeat information multiple times due to lack of coordination. XXXX. Failure to Properly Address Document Errors and Requests Applicable Regulation : 12 CFR 1024.35 Error Resolution Procedures 12 CFR 1024.36 Requests for Information Incident : Documents submitted were not properly acknowledged or tracked. Errors in documentation were identified late rather than during initial review. Repeated requests for the same or similar documents occurred without clarification. I requested confirmation of received documents but did not receive clear resolution. Violation Analysis : Failure to reasonably investigate and correct servicing errors. Failure to provide accurate and complete responses to borrower inquiries. Lack of transparency in document tracking and file status. XXXX. Failure in General Servicing Practices and Recordkeeping Applicable Regulation : 12 CFR 1024.38 General Servicing Policies and Procedures Incident : Documents were accepted and later deemed insufficient without clear initial review. Internal inconsistencies suggest inadequate recordkeeping or review processes. No clear audit trail or consistent documentation status was provided. Violation Analysis : Failure to maintain policies ensuring accurate document handling. Failure to properly record, track, and communicate application status. Breakdown in internal servicing procedures. XXXX. Potential Dual-Tracking and Foreclosure Risk Applicable Regulation : 12 CFR 1024.41 Incident : Foreclosure activity is ongoing while my loss mitigation application remains unresolved. No final determination has been made on my application despite submission of required documents. Violation Analysis : Proceeding with foreclosure-related actions while a complete application is under review may constitute prohibited dual-tracking. Lack of proper resolution prior to advancing foreclosure proceedings. XXXX. Payment and Account Handling Concerns ( If Applicable ) Applicable Regulations : 12 CFR 1026.36 Payment Processing 12 CFR 1026.41 Periodic Statements Incident : Account status has been difficult to verify due to inconsistent servicing communication. Statements and account updates have not clearly reflected the status of my loss mitigation review. Violation Analysis : Potential failure to properly apply or communicate payment/account information. Lack of clarity in periodic statements regarding account status. IV. HARM CAUSED As a result of these servicing failures : I face ongoing risk of foreclosure My ability to resolve my mortgage has been significantly delayed I have experienced financial, emotional, and household hardship My household stability has been impacted, including medical considerations for my dependent V. RELIEF REQUESTED I respectfully request : Immediate assignment of a single qualified point of contact Immediate suspension of foreclosure activity pending review of my application A full and final review of my loss mitigation application under 12 CFR 1024.41 Written confirmation of all documents received and status of my file A complete and final list of any deficiencies ( if any exist ) Correction of servicing errors under 12 CFR 1024.35 Compliance with continuity of contact requirements under 12 CFR 1026.40 Written explanation of all actions taken on my account VI. NOTICE OF FURTHER ACTION If these violations are not corrected promptly, I reserve the right to pursue : Additional complaints with federal regulators Escalation through formal enforcement channels Legal remedies for servicing violations and foreclosure-related harm Submitted by : XXXX XXXX NOTICE OF ERROR AND REQUEST FOR INFORMATION ( RESPA ) RE : Mortgage Loan Loss Mitigation Mishandling & Foreclosure Activity Borrower : XXXX XXXX XXXX XXXX Navy Federal Credit Union XXXX XXXX To Whom It May Concern, I am submitting this as a * * formal Notice of Error and Request for Information * * under the Real Estate Settlement Procedures Act ( RESPA ), regarding the handling of my mortgage account and loss mitigation application. Errors Identified I assert that the following errors have occurred : XXXX. * * Failure to properly process my loss mitigation application * * XXXX. * * Requesting duplicative and inconsistent documentation * * XXXX. * * Failure to notify me of missing documents in a timely manner * * XXXX. * * Providing conflicting and inaccurate information from multiple representatives * * XXXX. * * Failure to exercise reasonable diligence in obtaining documents * * XXXX. * * Improper delay of my application since XXXX despite repeated submissions * * XXXX. * * Potential dual-tracking ( continuing foreclosure activity while my application is under review ) Facts * I have submitted all requested documents multiple times since XXXX * I have been given conflicting instructions by different representatives * Documents have been accepted, then later rejected for new reasons * I was told my application was near completion, then forced to restart * My case has not been assigned to a single point of contact * Foreclosure activity is ongoing despite my active efforts to complete the process -- - Requested Action I am requesting the following : XXXX. Immediate * * suspension of all foreclosure activity * * while my loss mitigation application is under review XXXX. Assignment of a * * single point of contact or supervisor * * XXXX. A complete and final written list of any outstanding documents XXXX. Written confirmation of all documents currently on file XXXX. A full investigation into the handling of my account XXXX. Correction of all errors and prompt processing of my application Request for Information Please provide : * A complete account history * All records of documents received from me * Internal notes regarding my loss mitigation application * Dates of all application reviews * Identification of all personnel involved in my case Due to the ongoing nature of these issues and the risk of foreclosure, I am also filing a complaint with the Consumer Financial Protection Bureau. Failure to correct these errors may result in further legal action. Sincerely, XXXX XXXX XXXX : XXXX

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