Consumer complaint received 2022-11-26 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: NAVY FEDERAL CREDIT UNION
State: MD

Complaint narrative:
I am very disappointed that Navy Federal is casting misleading mortgage loans regarding their military choice loan. My husband and I were pre-approved for a loan over the phone with Navy Federal Credit Union. We disclosed all of our information and the address of the perfect second home we found for ourselves in XXXX XXXX, Maryland. 

At first, my husband, XXXX, was only going to be on the loan because he had a higher credit score. The phone contact said XXXX, on his own qualified for the loan because his XXXX was low enough. We put the offer on the house and were accepted/under contract. Once we got assigned a loan officer, XXXX XXXX, XXXX # XXXX, told us that I would have to be added to the loan because his XXXX was too high for that type of loan. I was confused. At this point, XXXX had only talked to my husband. I called XXXX and tried to clarify why it would be any different since we disclosed everything on the phone. He made an excuse that it just got to his desk so that he couldnt process it yet. We were already pre-approved at this point. He told me he would send me the information to get added to the loan. I never received his email. 

I called him five days later and asked him where the email was. He said he sent it to me. I never received it. I asked him if XXXX could stay on loan without me getting added on there because of the credit score and asked him again to clarify why it was different. He said it was too late because he had already pulled my credit and added me to the loan. I said okay, well, what are the interest rates looking like, knowing that the interest rates would now go off of my credit score. He stated that interest rates dropped and were at 8.00 % now. I said great! Is there any way to lock in our rate now? He said yes, we could that we were locked in at 8.00 % and could go down to 7.5 % if it dropped again with the freedom lock. 

I then got a call two days later, and he said, btw, we are back up to the 8.6 % interest rate because rates went back up again. 

I said, how is that possible when we locked in the other day on the phone? He acted clueless and said we had to get the 8.6 % interest rate. 

I then went to his supervisor, and she claimed that XXXX said he never said that and that I misunderstood him. I told her to pull the tapes!!!! I know what he said and he is lying trying to cover up what he said. She said she never had any complaints with him so she was surprised about it. I told her it really didnt seem like he knew what he was doing and is calling me liar instead of admitting he made a mistake. 

I told her, I would give him another chance and move forward with him. 

We then get to underwriting and was told our loan was going to get denied because it was within XXXX of our primary home. At this point we paid for inspections and under contract for XXXX weeks. We also were never told there was a requirement of distance throughout the process. We were mislead. 

We needed the 2nd home to help with our crazy schedules and having family there. We wrote a letter of explanation and still was denied and said it was an investment property which is further from the truth and what I believe a cover up because XXXX and the Navy Federal team put out falsified information. 

When also trying to get information from XXXX about getting an answer from the underwriters after he told us that we were going to get denied because of the XXXX radius rule, he told us that he resubmitted our loan with the explanation letter we wrote and should have a turnaround time of Monday ( it was Friday XXXX 2022, and he said he submitted our documents on that Saturday XXXX 2022 ). Turns out, his back up, XXXX, told us that he never submitted it when he said he did and it was submitted by him on that Monday that I called her to find out what was going on. Another lie from XXXX. 

We are out of money from this. If the company was up front about there so call XXXX radius rule which is not stated on their website under the military choice requirements nor was it a pre-approval question, we wouldnt had spent money, have our credit pulled and credit score dropped, or get our hopes up about the property. We are also not able to get the second home that we need to support both my husband and I being in the military and trying to support family and keeping our dogs in a good place. 

I would like the company to review the voice transactions with XXXX that we had over his work cell phone number and also his work number to show that we were misled in this home-buying process. 

XXXX

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