Consumer complaint received 2021-09-16 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: NAVY FEDERAL CREDIT UNION
State: VA

Complaint narrative:
I am a fairly experienced home buyer, having successfully bought three properties before this experience. In trying to work with the Navy Federal Credit Union to obtain a mortgage loan for a one-bedroom condo, I instead suffered XXXX XXXX XXXX and expense. I ultimately choose to purchase the property outright rather than continue with the difficult process. Below are some of the major issues I had with the process, which seemed to me unethical and unfair : 1. ) I asked to speak with supervisor about the tangled up application process, which included being asked by the automated system to fill out the application for the loan three times. ( It was completed before the second two requests. ) I had previously talked to a supervisor about the excessive amount of information requested -- going back two years, my business accounts and bank statements ( 3 months ) and investment accounts, as well as my personal tax records and bank statements and pay stubs plus permission to get the transcript for my tax records, just for starters. Some of that turned out to be unnecessary. I can't tell you which of the information requested was never used. However, my income was incorrectly assessed ( profit and dividend distribution versus payroll. I'm a self-employed business owner. ) All the communication was one way : " This is what we require. '' 2. ) The automated system had a process and order that it worked through automatically to process the information for the loan application. For me to input information for the loan evaluation in an order different from that, I had to use a back door to upload information as my portal was locked out for that information. I was later told that the information I uploaded that way would go to the evaluators, but not my profile account. I therefore had no access to that information or forms. 

3. ) A set of information that the automated system sent to me for signature included providing my account information for automated payments. It was made to appear that this was required to proceed through the automated information process. It turned out later that it was not required. Since I didn't complete all the information at one sitting, I had to upload forms through the back door to complete. When I discovered I didn't have to provide that information ( and I didn't want to pay that way or give out my account information ), I was not able to delete that form as it was not accessible on my profile. 

4. ) I was told the supervisor would contact me several times. That never happened. ( Exhibit A below. ) 5. ) For six weeks, I discussed the loan at a rate of 2.266 APR. On XXXX XXXX, an APR of 2.237 was assessed. In conversation with my agent, on XXXX XXXX, I gave permission to proceed with the loan process based on that APR. On XXXX XXXX -- the day after she called me to get permission to proceed, the rate was changed to 3.365 APR ( rate for an investment ). I immediately withdrew my permission to proceed, but I was charged for an appraisal XXXX XXXX. The appraisal should go to the buyer. I never received it. 

6. ) The rate was changed to an investment rate for reasons that were not explained to me. I don't know what algorithm was used to determine it, but it is not appropriate for the change in family situations that has come with the pandemic. The property was going to be lived in by me and my family. I sent a dispute letter for the rate change that was never responded to directly. 

7. ) The only response I got, which again was never explained, was a Statement of Credit Denial in the mail, determined XXXX XXXX. The reasons checked were : " Excessive Obligations in Relation to Income '' ( which is incorrect based on incorrectly characterizing my income ) and " Property use does not meet occupancy requirements. '' 8. ) Several weeks later I received my credit card statement with a {$510.00} charge for the appraisal. No appraisal was delivered to myself, the previous owner, or the settlement company. 

9. ) I contacted the Navy Federal Credit Union about this charge XX/XX/21 at XXXX. After 30 minutes of engaging, no one was available to talk with me. I was told a supervisor would get in touch with me. I have requested all my PII information be removed from the loan site. 

Switching up the rate after six weeks three weeks before the settlement date has a name. It's called bait and switch, an unethical tactic. Using an automated system to imply that compliance is necessary ( to get through an impersonal system ) for PII ( highly personal, secure information ) is unethical. Not responding to requests to work through issues and problems is at least unprofessional. One-way communication ( they request information, I can't request information ) is problematic in any proposed business relationship.

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