Consumer complaint received 2026-03-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: NAVY FEDERAL CREDIT UNION
State: LA

Complaint narrative:
On XX/XX/XXXX, I initiated a loss mitigation application with Navy Federal Credit Union. Navy Federal sent me a package listing all required documents including bank statements, pay stubs, explanation letters, a hardship letter, and tax returns. By XX/XX/XXXX, I submitted every requested document. That same day, Navy Federal informed me that some files could not be opened. I immediately resent those documents and also transmitted the full package by fax on XX/XX/XXXX to ensure receipt. Navy Federal then requested additional documents not in the original package : a monthly expense page, XXXX personal tax returns signed and dated, and IRS Form 4506-C . I submitted all of these. Navy Federal subsequently followed up again specifically asking about the 4506-C status and also requested a Profit and Loss statement for my business. I submitted the Profit and Loss statement multiple times by email. On XX/XX/XXXX, I sent a package of 11 attachments containing everything requested up to that point, along with a business account explanation letter. Navy Federal still stated the application was incomplete. I also provided a written explanation that I am still employed but my employer currently has no work available due to a lack of insurance claims, and that my most recent pay stub is from XX/XX/XXXX the last XXXX available. On XX/XX/XXXX, I submitted XXXX additional pages of tax documents by email. At various points Navy Federal claimed documents were not filled out correctly. Each time I was notified, I corrected and resubmitted before the deadlines Navy Federal communicated to me in writing. Because some files were too large to send as a single email, I contacted Navy Federal and was told it was acceptable to send two attachments at a time with my name in the subject line. I followed these instructions exactly yet Navy Federal continued to claim documents were missing. On XX/XX/XXXX, I was again required to resend my pay stub by email because Navy Federal claimed not to have it, despite it having been previously submitted directly through the Navy Federal app. I had four documented phone calls with Navy Federal : XX/XX/XXXX ( XXXX minutes ), XX/XX/XXXX ( XXXX minutes ), XX/XX/XXXX ( XXXX minutes ), and XX/XX/XXXX ( XXXX minutes ). During each call I asked specifically what documents were still needed, explained what had already been submitted, and requested that notes be added to my file. During the XX/XX/XXXX call I also questioned why I was receiving foreclosure-related notices while my application was still active, asking whether there was a miscommunication between departments. On XX/XX/XXXX XXXX day before my final document submission and while my application was still actively pending I received a Notice of Default and Intent to Accelerate from Navy Federal. This is a dual-tracking violation under 12 C.F.R. 1024.41 ( f ), which prohibits servicers from initiating foreclosure proceedings while a loss mitigation application is under review. On XX/XX/XXXX, I submitted the final documents requested : a signed and dated tax document ( a Navy Federal representative confirmed during our call that only one page needed to be signed ), a missing tax document, and the Profit and Loss statement. This was XXXX days before the denial was issued. On or about XX/XX/XXXX, I received a denial letter stating only that my application was " incomplete. '' The letter did not identify which specific documents were missing, did not provide any specific reason for the denial, and did not inform me of my right to appeal all of which are required under 12 C.F.R. 1024.41 ( d ). On XX/XX/XXXX after the denial had already been issued I received yet another email from Navy Federal stating the application was incomplete, suggesting the file was never properly tracked or reviewed. Due to the denial and the ongoing threat of foreclosure, I have been forced to initiate a second loss mitigation application. I am not certain whether this will be sufficient to stop the foreclosure proceedings. I have made every good-faith effort throughout this process, submitting and resubmitting documents on multiple occasions, always responding before stated deadlines, and maintaining consistent communication with Navy Federal .

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief