Consumer complaint received 2021-05-10 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: PENTAGON FEDERAL CREDIT UNION
State: TX

Complaint narrative:
I would like to file a complaint regarding the Pentagon Federal Credit Union refinance department. On XX/XX/XXXX I applied to refinance my home loan. At which time the loan was in forbearance due to COVID-19. I complied with all requests for paperwork. I complied with the two house appraisals ( The second of which they wanted me to pay for since the first one expired given how long the process was taking. I declined to pay for their deficiency ). I stayed in touch with my loan officer XXXX XXXX and her associates XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX, and XXXX XXXX ; mortgage processor XXXX XXXX ; as well as Escrow Assistant XXXX XXXX continuously asking about the status and if there was anything else that I needed to do. In the meantime I told forbearance I was refinancing the loan so they said it was no use of applying for a forbearance loan modification if I was refinancing the loan. Forbearance called me monthly to check on the status of the refinance. I had no status updates so I gave him the name of either XXXX XXXX or XXXX XXXX so that he could consult with them about the status of the refinance and especially given the fact the loan in forbearance and refinance were both Penfed but there was no communication between the two departments. By XX/XX/XXXX I had become frustrated with how long this process was taking with no status updates. I was always the one asking for status updates and the response was " processing or underwriting was behind ''. The only emails I received from PenFed was asking for more paperwork or to schedule the house appraisal. I did receive a conditional approval email on XX/XX/XXXX ( which I can upload that if that would be helpful ). So finally on XX/XX/XXXX, five months after I applied to refinance my loan, I was told by XXXX XXXX that the loan processor denied the refinance because the loan was in forbearance. The same loan that was in forbearance five months earlier. Not once was I told that I needed to take the loan out of forbearance to proceed with the refinance because if I had, I would have done just that. I even tried to make payments but I couldnt because the loan said paid in full due to the refinance application ( I sent screenshots of this to both XXXX XXXX and XXXX XXXX ). XXXX stated that apparently the loan processors were changing and going back and forth about approving loans in forbearance. If that was the case this should have been communicated with me. I asked to speak with a supervisor so XXXX told me that she would have her supervisor contact me. Im still waiting on that phone call. I have been a PenFed client since XXXX. I have NEVER made a late payment and I have NEVER been disappointed in PenFed until now. The gross lack of communication throughout this entire process was extremely disappointing and not what I would expect as a loyal 12 year client. As such, I am considering transferring my loans to another mortgage lender if I can not get my loan refinanced with Penfed because the whole point was to take advantage of the low interest rates which I have now missed out on.

Company response to consumer: Closed with explanation