Consumer complaint received 2026-05-26 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: NAVY FEDERAL CREDIT UNION
State: NV

Complaint narrative:
I applied for a mortgage loan through Navy Federal Credit Union with a contractual closing date of XX/XX/year>. Throughout the underwriting process, I provided requested documentation promptly and repeatedly followed up regarding the status of my file and any outstanding underwriting concerns. A significant portion of the underwriting review involved my Nevada property, which I converted into a rental property rather than selling. I secured a tenant under an executed lease agreement effective XX/XX/year>. The tenant satisfied the required deposit and first months rent obligations totaling {$9800.00} through the following transactions : XX/XX/year> {$3500.00} via XXXX, XX/XX/year> {$6000.00} via wire transfer, XX/XX/year> {$300.00} via XXXX. These transactions were reflected within my XXXX XXXX XXXX account statements and were provided to Navy Federal for review. During the underwriting process, I repeatedly attempted to clarify the rental arrangement and provide any documentation necessary to support the rental income offset. However, after more than a month of review beginning in XX/XX/year> and only days before my scheduled closing date, I was informed verbally by Navy Federal representatives that the loan was allegedly denied due to concerns surrounding the rental property lease and rental payment amounts, including the final {$300.00} payment received on XX/XX/year>. However, the formal adverse action notice dated XX/XX/year> did not identify the rental property or rental income as the reason for denial. Instead, the notice stated only : Extenuating factors exist regarding your NFCU account ( s ). This explanation did not provide sufficient detail for me to understand or respond to the actual underwriting concern. When I requested clarification from Navy Federal representatives, I received inconsistent explanations. One representative stated the denial was related to the rental offset. Another representative stated they were not sure of the actual reason. I was also advised that the issue involved the rental payment amounts even though the lease obligations had already been satisfied and documented. I subsequently provided additional clarification and documentation showing that the tenant fully satisfied the required lease obligations and explained the timing of the final {$300.00} payment. Despite this, I was advised that the additional documentation was unlikely to overturn the denial. I am concerned that : Navy Federal failed to clearly identify the true basis for denial in the adverse action notice ; I was provided inconsistent and conflicting explanations regarding the denial reason ; I was not given a meaningful opportunity to cure or address underwriting concerns earlier in the process despite repeated follow-up attempts ; The file was not reviewed or escalated timely despite the imminent contractual closing deadline ; And I remain unable to obtain a clear explanation identifying what underwriting requirement, investor guideline, or internal overlay specifically prevented approval. I also attempted escalation through management and executive review channels because the denial occurred only days before closing after I had spent significant time and resources attempting to complete the transaction, including extended temporary housing arrangements during my relocation process. I am requesting : A full review of the underwriting and adverse action process associated with this loan application ; Clarification regarding the actual basis for denial ; Review of whether the adverse action notice complied with applicable consumer disclosure requirements ; Review of whether all submitted documentation was properly considered ; And assistance in obtaining a fair and transparent reconsideration review before the contractual closing deadline expires. I would prefer to resolve this matter directly and cooperatively with Navy Federal ; however, I am filing this complaint because I have been unable to obtain consistent, specific, or actionable explanations regarding the denial despite repeated efforts.

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