Consumer complaint received 2025-08-01 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: NAVY FEDERAL CREDIT UNION
State: GA

Complaint narrative:
HELOC Loan Application Misuse of Appraisal and Non-Response to Dispute Dear NCUA Consumer Assistance Team, Formal Complaint Against Navy Federal Credit Union ( NFCU ) Regarding HELOC Application, Misuse of Outdated Appraisal, and Non-Response to Dispute Complainant Information : Name XXXX XXXX XXXX XXXX XXXXXXXX Phone : XXXX Mailing Address : XXXX XXXX XXXX, XXXX, GA XXXX Property Address : XXXXXXXX XXXX XXXX XXXX XXXX, XXXX, GA XXXX Summary of Events : Loan Application Number Application Submitted : XXXX XXXX Loan Denial Date : XX/XX/XXXX Denial Reasons : Loan-to-value ratio ( XXXX ), bankruptcy XXXX XXXX ), and lack of sufficient credit history. 

Key Concerns : Unauthorized Use of Outdated Appraisal Report : NFCU used an outdated electronic appraisal report dated XX/XX/XXXX, signed by XXXX Banks, without my consent or knowledge. This appraisal negatively impacted the loan-to-value ( XXXX ) ratio and was not disclosed to me prior to its use. I was not provided with a copy of this appraisal or consulted before it was utilized.

Failure to Address Dispute or Provide Requested Information : I formally disputed the use of the outdated appraisal and requested the following : A 2025 appraisal report based on current property values. 
A copy of the loan application ( Form 1003 ).

A detailed report of the credit scoring criteria used to deny my loan. 

A record of XXXX consecutive monthly payments made from my Navy Federal Account.

Credit Report and Garnishment Issue : My credit report currently reflects a garnishment, which I believe is inaccurate. Despite this, I have consistently made monthly payments for my mortgage to XXXXXXXX XXXX XXXXXXXX ( XXXX XXXX. XXXX ) via Navy Federal and have a receipt showing proof of these payments. These payments demonstrate my creditworthiness. 

Additionally, the XXXX bankruptcy ( XXXX XXXX. XXXX ) was fully discharged in XX/XX/XXXX, and any reference to this bankruptcy or related garnishment is no longer relevant. The negative credit impact caused by this erroneous information is unjustified and requires correction. 



Despite my requests, NFCU failed to respond to my dispute and did not provide the requested documents, which I believe violates both transparency and fair lending obligations under federal law. 

Additional Concerns : Unauthorized Termination of Water Service : On XX/XX/XXXX, water service to my property was terminated without prior notice or authorization, causing significant inconvenience. This may have affected the propertys condition and valuation, which were critical to the loan evaluation process.

Possible Violations of Federal Consumer Protection Laws : FCRA ( Fair Credit Reporting Act ) : NFCUs use of potentially inaccurate credit information and failure to respond to my dispute may be a violation of my rights under the FCRA.

TILA ( Truth in Lending Act ) : Failure to provide proper disclosures and an accurate appraisal report could constitute violations under the TILA.

I am submitting a formal complaint against Navy Federal Credit Union ( NFCU ) concerning their handling of Home Equity Line of Credit ( HELOC ) loan application, specifically related to : Unauthorized use of an outdated appraisal, outdated forms Condominium Questionnaire for XXXX XXXX  dated XX/XX/XXXX, Denial based on inaccurate loan-to-value ( XXXX ) data and credit information, and Navy Federals failure to respond to my written dispute. 
Summary of Events : Loan Application Number : Property Address : XXXX, GA XXXX Application Submitted : XXXX XXXX Denial Date : XX/XX/XXXX Denial Reasons : Loan-to-value ratio, bankruptcy XXXX and lack of sufficient credit history Key Concerns : Unauthorized Use of XX/XX/XXXX fannie mae form signed XXXX XXXX XXXX  XXXX XXXX XXXX used an electronic appraisal, outdated fannie mae form dated XXXX XXXX to evaluate my XXXX HELOC application without my knowledge or consent. This outdated report negatively impacted the loan-to-value calculation, and I was never consulted or provided a copy of the appraisal. 
Lack of Transparency I formally disputed the use of this outdated appraisal and requested copies of the full appraisal report XXXX, the loan application ( Form XXXX ), and credit scoring criteria used in the denial, 36 Monthly Loan payments to XXXX XXXX XXXXXXXX loan are paid directly from Navy Federal Account XXXX XXXX shows credit worthy. Navy Federal ignored written request and failed to provide a response, which violates transparency and fair lending obligations. 
Additional Concern : On XX/XX/XXXX, water service to property XXXX XXXX, XXXX, GA XXXX, was terminated without authorization or prior notice. This unauthorized action caused significant inconvenience and may have affected property conditions and valuation used in the loan process.

Potential FCRA and TILA Violations By using potentially incorrect credit information and failing to provide disclosures and appraisal documents upon request, I believe Navy Federal may have violated the Fair Credit Reporting Act ( FCRA ) and Truth in Lending Act ( TILA ).

Requested Resolution : I request that Navy Federals actions and determine whether they failed to comply with federal consumer protection rules.

I request HeLoc Approval, property restored, access to the full appraisal report XXXX, forensic XXXX XXXX of common areas and the name/license of the XXXX used for an offsite property inspection in XXXX. 
I request that Navy Federal be required to respond to dispute and provide a corrected evaluation using current data approving HELOC Loan for property XXXX XXXX XXXX XXXX, Conyers, GA XXXX. 

Sent : Wednesday, XX/XX/XXXX XXXX AM To : XXXX XXXX XXXX ; ; XXXX XXXX XXXX & gt ; Subject : Dispute of Inaccurate Information on Credit Report. Navy federal Credit Union app. 


DESIRED RESOLUTION : I request that Navy Federal be required to respond to my dispute, utilize credit history payments history documented with 36 monthly payments from Navy Federal Accounts access, Bankruptcy XXXX no longer relevant Case No. which was fully XXXX in XX/XX/XXXX, currently paid up for Property address : XXXX, GA XXXX XXXX XXXX Condominiums $ 275 monthly XXXX fees, XXXX Mortgage XXXX loan XXXX current payments and provide a corrected evaluation using current data approving HELOC Loan for property XXXX XXXX XXXX XXXX XXXX, XXXX, GA XXXX. 

ACCOUNT OR LOAN TYPE : Home Equity Loan PROBLEM : Credit Denial IS THIS CASE PENDING LITITGATION : No DISPUTED AMOUNT : {$82000.00} WHEN DID COMPLAINANT CONTACT CREDIT UNION : XX/XX/XXXX XXXX AM HAS CREDIT UNION RESPONDED : No

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