Consumer complaint received 2025-12-04 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Trying to communicate with the company to fix an issue with the loan closing
Company: NAVY FEDERAL CREDIT UNION
State: CA

Complaint narrative:
I am filing a complaint regarding Navy Federal Credit Unions handling of my mortgage application as a self-employed borrower. Navy Federal issued a Verified Pre-Approval and my loan officer, XXXX XXXX, repeatedly stated this meant the loan was essentially fully underwritten in advance. Based on those representations, we made an offer on a home with a 15-day escrow, at Navy Federals encouragement . 

Throughout the process, we submitted all requested documentation immediately, including profit and loss statements, business documentation, and ultimately our XXXX  tax return, filed under a valid extension. We went through multiple underwriting reviews, and as recently as Friday, XX/XX/XXXX, XXXX reassured us our loan looked great and clear-to-close could come any minute. On that same day, she stated that we could remove the loan contingency if we wanted something that would have been catastrophic had we followed her guidance. Another Navy Federal representative, XXXX XXXX, stated the final review was routine and that everything still looked fine. 

Despite weeks of assurances and no request for clarification, Navy Federal denied the loan at final underwriting, just days before closing. The only new information at that stage was our XXXX  tax return, yet we were not offered any opportunity to clarify a discrepancy, provide supporting documentation, or pursue standard mitigation options ( CPA letter, business bank statements, updated YTD financials, larger down payment, etc. ). Instead, the loan was denied outright. 

This failure was predictable and avoidable. Any differences between our profit and loss and our filed tax return should have been reviewed earlier in the process if Navy Federal had exercised reasonable diligence. The last-minute reversal caused financial harm, including inspection fees, appraisal fees, and thousands of dollars of additional costs to preserve the purchase during escrow extensions. 

When we sought explanation or remedy, the assigned supervisor, XXXX XXXX, was dismissive and unhelpful. During a phone call where I became emotional out of fear we might lose the home, she laughed at me. This was humiliating and XXXX, particularly after weeks of unclear communication. 

We subsequently obtained a mortgage with a different lender, on the same property, without issue. This indicates the problem was not our financial eligibility, but Navy Federals misrepresentation of the pre-approval, lack of diligence in underwriting, and failure to provide a fair opportunity to cure a routine discrepancy at the end of the process. 

I am seeking : A written explanation from Navy Federal regarding why no remediation options were offered before denial ; Reimbursement of out-of-pocket costs incurred in reasonable reliance on Navy Federals guidance ; Documentation of how the Verified Pre-Approval was represented, evaluated, and applied to my loan file. The only detail we were provided was " insufficient income '' which is incongruous with the objective details of our loan application. 

I believe Navy Federals handling of this loan reflects process failure, misleading guidance, and preventable financial harm to a consumer acting in good faith.

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