Consumer complaint received 2025-06-23 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: NAVY FEDERAL CREDIT UNION
State: NC

Complaint narrative:
I am filing this complaint against Navy Federal Credit Union ( NFCU ) regarding serious mishandling of a mortgage assistance application, procedural failures, inaccurate credit reporting, and the deletion of recordsall of which have caused significant financial harm. 
XXXX  Summary of Events In XX/XX/XXXX, I lost my job and, due to the resulting financial hardship, submitted a mortgage assistance application to Navy Federal Credit Union ( NFCU ) in XX/XX/XXXX. At the time, I informed NFCU that I had not yet begun receiving unemployment benefits and requested temporary support to avoid falling into delinquency. 

In XX/XX/XXXX, I was informed that my application had been denied due to lack of documentation verifying my job loss. I was told the application would remain open while I obtained the necessary documentation from my former employer. I also requested a formal letter from NFCU stating the documentation requirements so I could provide it to my employerthis letter was never provided. 

On XX/XX/XXXX, the application was closed without notice. When I contacted NFCU on XX/XX/XXXX, after obtaining the required documentation, I was told that the application had been denied not due to missing documentation, but because the account was not delinquent at the time of applicationa new and previously undisclosed reason. 

Record Deletion and Negative Impact Following up on the issue, I discovered that NFCU had removed all records of my original XX/XX/XXXX application, raising concerns about potential deliberate suppression or erasure of evidence related to their mishandling of my case. 

As a direct result of these failures, I fell into delinquency, was assessed late fees in XXXX and XX/XX/XXXX, and had a late payment reported to credit bureaus. This caused significant harm to my credit score, directly impacting my ability to secure stable housing and employment. I was also forced to reapply for mortgage assistance, delaying any potential relief at a time of ongoing financial distress. 

Additionally, it is important to note that in the original XX/XX/XXXX correspondence, no unemployment pay stub was requested or submitted, as the application at that time was based solely on proof of job loss. By contrast, in XX/XX/XXXX, a separate application was filed and did include updated documentation, including an unemployment pay stubhighlighting that these were XXXX distinct applications, with different timelines and submitted materials. 
XXXX Legal and Regulatory Concerns I believe Navy Federals conduct may violate the following : Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681s-2 : NFCU furnished negative credit information based on a situation they created.

Truth in Lending Act ( TILA ) 15 U.S.C. 1601 : NFCU failed to provide clear, timely disclosures or written guidance.

Equal Credit Opportunity Act ( ECOA ) 15 U.S.C. 1691 : Failure to provide written denial reasoning and inconsistent justifications. 
12 CFR 1024.41 ( Regulation X ) : Failure to follow proper mortgage assistance evaluation and notice procedures.

18 U.S.C. 1519 : Potential improper deletion or concealment of records.

18 U.S.C. 242 : If coordinated with public officials, this may rise to deprivation of rights under color of law.

XXXX

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