Consumer complaint received 2026-04-14 00:00:00
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: NAVY FEDERAL CREDIT UNION
State: TX

Complaint narrative:
CFPB Complaint Mortgage Lending Issue Borrower : XXXXXXXX XXXX XXXXXXXX XXXX XXXX : Navy Federal Credit Union XXXX : Mortgage Date of Issue : XX/XX/XXXX Complaint Narrative I am submitting this complaint regarding a mortgage lending experience with Navy Federal Credit Union in XXXX that resulted in significant financial harm to my household. My husband is a XXXX eligible for a XXXX XXXXXXXX loan. From the beginning of the application process, we clearly disclosed all relevant information, including that my husband was employed in XXXX while we were actively relocating to XXXX. At the time, I had already relocated to XXXX and my husband was actively interviewing for employment in XXXX, demonstrating a clear intent to occupy the property as required under XXXX loan guidelines. During the application process, we were explicitly offered and agreed to lock an interest rate of approximately 2.375 % for a XXXX loan on a home purchase of approximately {$520000.00}, with an anticipated closing in XX/XX/XXXX. We relied on this rate and loan structure in proceeding with the transaction. We also clearly communicated that we intended to use a XXXX loan with my husband as the primary borrower. This was acknowledged early in the process. However, during the final stages of underwriting, shortly before our scheduled closing in XX/XX/XXXX, Navy Federal Credit Union informed us that my husband could not be included on the loan due to occupancy concerns. This issue had not been raised earlier in the process despite full disclosure of our relocation plans. As a result : My husband ( the XXXX borrower ) was removed from the loan The XXXX loan product was no longer available We were presented with alternative loan options that were materially different from the originally agreed-upon fixed-rate XXXX loan, including adjustable-rate mortgage structures These changes occurred during the week of closing, after we had already progressed through the loan process and were preparing to finalize the purchase. The seller of the original property attempted to accommodate delays and held the contract open as long as possible. Despite these efforts, the transaction could not be completed due to the lenders last-minute changes to the loan structure, which ultimately caused the deal to fall through. As a result of these last-minute changes, we lost the opportunity to purchase our original home and were forced to delay our home purchase while securing alternative financing. This delay required us to re-enter the housing market under less favorable conditions, ultimately resulting in a higher purchase price and significantly higher interest rate. We were forced to terminate our contract on the original home purchase ( approximately {$520000.00} ), resulting in the loss of our {$5000.00} XXXX money deposit. We then secured alternative financing with XXXX XXXX and ultimately purchased a different home in XX/XX/XXXX for approximately {$620000.00} under significantly less favorable terms, with an interest rate of approximately 4.875 %. Because of the delay and loss of the original loan, our interest rate increased from approximately XXXX % to XXXX %, resulting in an estimated increase of approximately {$700.00} {$800.00} per month in our mortgage payment. At no point early in the process were we informed that my husbands out-of-state employment or relocation timing would prevent him from being included on the loan. Had this issue been raised in a timely manner, we would have pursued alternative options without losing our original home, XXXX money, and favorable loan terms. Summary of Concerns Failure to properly evaluate borrower eligibility early in the process Improper handling of XXXX occupancy requirements Material changes to loan structure at the final stage of closing Presentation of higher-risk loan options under time pressure Significant financial harm caused by delays and last-minute underwriting decisions Financial Impact Loss of original home purchase ( ~ {$520000.00} ) Purchase of replacement home at higher cost ( ~ {$620000.00} ) Loss of {$5000.00} XXXX money deposit Increase in mortgage interest rate from XXXX % to XXXX % Estimated increase of ~ {$700.00} {$800.00} per month Approximate increase of ~ {$2000.00} per year in property taxes due to higher purchase price Estimated financial impact exceeding {$60000.00} within the first XXXX years

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