Consumer complaint received 2025-09-06 00:00:00
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — Delays with the closing process
Company: NAVY FEDERAL CREDIT UNION
State: WA

Complaint narrative:
Issues and evidence : Assurances vs. paperwork ( since XX/XX/XXXX ) : From the start I asked that the VA funding fee, discount points, and 1 % origination be rolled into the loan. I was told verbally and in writing that they were, yet multiple LEs and CDs did not reflect that. 

See-sawing across versions ( not a one-off ) : Across multiple LEs ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX ) and the XXXX to XX/XX/XXXX CDs, Title charges rose when taxes and escrows fell, and vice versa. This created the appearance of balancing to a target closing-cost total rather than transparent pass-throughs. 

Proceeds far below expectations ( XXXX to XX/XX/XXXX ) : Target cash-out was {$180000.00}, but cash to borrower landed around {$160000.00}. I refused to sign on XX/XX/XXXX for that reason. 

Email misrepresenting facts ( XX/XX/XXXX ) : I received a written statement claiming 100 % certainty that the VA funding fee, discount points, and origination were rolled into the loan. After reviewing the numbers I saw they were not and I requested that they be rolled in. 

XX/XX/XXXX CD punitive in effect and distinct from the others : Immediately after I declined to sign and asked that the items be rolled in as promised, the XX/XX/XXXX XXXX arrived showing lender-paid items reclassified to borrower-paid, new fees added, and broad increases of approximately {$3200.00} in financed costs. Closing was pushed to XX/XX/XXXX and disbursement to XX/XX/XXXX even though there was time to close sooner, which increased my prepaid interest and escrows. I submitted a compliance request the same day. 

Not a VA loan claim ( XX/XX/XXXX, XXXXXXXX XXXX XXXX ) : XXXX XXXX XXXX XXXXXXXX ( XXXX ) told me this is not a VA loan and the VA XXXX lend money ; the bank does, implying VA regulations did not apply and that you could both charge a 1 % origination fee and pass lender overhead as fees. I corrected that the VA guarantees the loan and VA rules apply. The XX/XX/XXXX CD then removed or reversed many XX/XX/XXXX changes. I accepted the XX/XX/XXXX economics and they aligned with expectations. 

Causation for missed XXXX close : The only reason the loan missed the XXXX closing window and slipped into XXXX was the lenders failure to implement my clearly stated requests, followed by unreasonable and punitive-in-effect disclosures issued even after a written 100 % guarantee. That conduct pushed funding into a new month and increased my prepaid interest and escrows. 

Internal complaint handling : I submitted XXXX complaints through Navy Federals secure messaging system. Each was forwarded back to the same department and individuals the complaints concerned, with no independent review or resolution, which prolonged the issues and increased costs. 

Title pass-throughs and VA fee compliance : With a 1 % origination fee, unallowable lender overhead may not be itemized and passed to the borrower. The reclassification of costs and the movement of Title lines relative to taxes and escrows suggest overhead may have been routed through Title. I request a VA fee-compliance review.

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