Consumer complaint received 2021-03-26 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: NAVY FEDERAL CREDIT UNION
State: WA

Complaint narrative:
Here 's the complaint that I submitted to Navy Federal Credit Union. 

OVERVIEW : This is in regards to NFCH mortgage loan # XXXX for the property at XXXX XXXX XXXX, XXXX, WA XXXX. Both XXXX XXXX and XXXX XXXX are listed on the mortgage. My NFCU access number ( for XXXX XXXX ) is XXXX. 

The complaint ( which is described below in more detail ) is that after being notified that the named persons on the mortgage had divorced and that a settlement agreement had awarded the property and mortgage to XXXX XXXX, NFCU transferred escrow money out of this mortgage ( {$2000.00} ) to XXXX XXXX. NFCU was negligent and careless in this action and now says there is nothing they can do to correct this error. XXXX XXXX is now in possession of the funds and he has not transferred the funds to XXXX XXXX despite requests. 

BACKGROUND : On XX/XX/XXXX we signed a divorce settlement that noted that property and all associated accounts were to transfer to me upon finalization of the divorce. 

On XX/XX/XXXX, I called NFCU and stopped the automatic payment method from a joint XXXX savings account that wed had set up for a number of years. XXXX XXXX had removed money from that joint account even though that was in opposition to the settlement order. At that point I paid the cabin mortgage on XXXX XXXX from my personal checking account. During this conversation I noted to the NFCU customer service person what was going on and that I was taking over responsibility for the mortgage account. 

The divorce was finalized XX/XX/XXXX. On XX/XX/XXXX I received a divorce settlement payment from XXXX to my XXXX personal checking account. I called NFCU that afternoon and completed a pay-off order for {$83000.00}. That was processed on XX/XX/XXXX. All money to pay off the loan came from my personal checking account in two wire transfers. The divorce was discussed with the customer service representative during this long phone call. The information regarding the pay off was mistakenly emailed to XXXX XXXX at the conclusion of this phone call and not to me. The representative tried to email me again after updating the email address, but a second email went to XXXX and I never received one. 

I received mailings regarding the payoff that week, including one that indicated NFCU had transferred the remaining escrow balance ( {$2000.00} ) into NFCU account ending in XXXX. This is not my account. They had transferred the remaining escrow money to XXXX XXXX and not to me. 

On XX/XX/XXXX upon calling NFCU for details about paying off the cabin mortgage, I learned they had returned all escrow money to XXXX checking account since that had been completed on a form back in XXXX. I contacted XXXX to try to solve this by having him return the money to me in accordance with the divorce settlement. He is choosing to not do this. 

When I called NFCU again to follow up on XX/XX/XXXX, I was able to speak with a manager, XXXX # XXXX. She said, we could have changed or asked you about what was going on and said she understands my position but that she cant do anything about it. She also said this happens sometimes. Which makes it seem like a problem that needs to be fixed with a better system in place and that she understands that NFCU is at fault for not handling this situation better given all the information they had about what was going on with our mortgage and divorce. 

COMPLAINTS : NFCU knew there was a divorce in progress between the mortgage holders and that the wife was taking over the mortgage. At no point in time was there any process to begin or follow regarding extra security measures or documentation that would protect the clients and the bank from any ill dealings. 
NFCU did not have the correct contact information for me and I was essentially in the dark regarding the pay off other than getting snail mail notifications several days after each event occurred. 
Though I ended auto pay from the joint account and took over paying the mortgage from my personal checking account and paid {$83000.00} to close out the mortgage from my personal account, at no time did any customer service representative talk to me about there being an escrow refund and was I able to approve what account that should be transferred to. 
Ultimately, NFCU didnt double check anything, didnt communicate anything, left me out of the loop and sent {$2000.00} to the wrong person on XX/XX/XXXX. 


REMEDY : I am asking for NFCU to correct its negligent error and return the escrow balance ( {$2000.00} ) to my NFCU checking account to remedy these errors in process. 

The only other recourse I have is to engage in lengthy and costly legal action to have XXXX return the money from the mortgage payoff. His history of removing money from accounts without authorization and in opposition to settlement agreements demonstrates how difficult getting this money back from him will be. Ultimately, NFCU caused this error and should take responsibility for fixing it. 

I look forward to hearing from you, XXXX XXXX XXXX XXXX XXXX

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