Like many of the posters here I regret not having read these boards before moving forward with USAA on my home purchase after 20 years of membership. What follows is a description of the problems that have yet to be resolved 12 days from closing(July 2nd), and 21 days from starting this process. But first I want to say that I am a mortgage expert, I have spent 20+ years in finance, and 15 years in the mortgage industry, and know the difference between isolated issues and deep rooted problems. I see the latter, but draw your own conclusions. I have higher standards than most when it comes to this area, but not unreasonable by any stretch.
I picked USAA for a few reasons, first off their PMI rate at 10% down is .025%, which is half the industry standard, which to me is like a free loan of sorts. I will spare you the math, but simply put you can keep half that down payment and not get hosed in PMI payments. Second factor that made me pick USAA was the recast options. I am selling my current home, expecting to net $50k or more and I can use that to pay down on the pricipal and lower my payment at any time for the lifetime of the loan. FInally the reputation and past experience with USAA has never failed me.
This is a fully documented convertional loan, plain vanilla. The wife and I have at least 3 years with current employers, 700+ credit, assets etc. We sent USAA double all the docs they wanted, asked for last 2 paystubs, they get 4, asked for 2 years w2s, they get 4, same for assets etc. I want them to have it all up front, not wanting to play the "missing information" game. I know the typical causes of delays, I want to avoid them all and provide every bit of info that will make the process as smooth as possible. Paid the appraisal fee on day one. Preapproval goes off without a hitch, already in contract from day one, they get all the docs. So far so good through week 1.
I am still committed to this process, and look forward to working through these issues with their team. I would appreciate a call from member of management at USAA regarding these concerns and I can be reached on my mobile number in my profile at almost any hour.
USAA has reached out to me via their member advocacy team, the process seems to have tightened up a little in theory, but proof is in the pudding. We remain commited to this process.
Day 25 and still no appraisal. We are supposed to close on 7/2 but that seems unlikely given USAA's performance so far. On Friday they asked me to provide proof that I pay all my cards off each month. Seems pretty late in the game, but I provided what they asked for. Had to send in another paystub for my wife, even after the full VOE they did for her. The aggrivating thing is that this all should have been done in week one, not late in week 4. We have a backup plan with 2 other lenders should USAA fail to give me the appraisal in the next 48 hours, and I guess I will join the line of former members finding greener pastures.
Day 26 since appraisal fee paid, and still no "approved" appraisal. Apparently once USAA gets an appraisal they won't just accept it on face value, it must go through an internal review and approval process before being used in the loan approval process. It seems with the regulatory changes that went into place after the meltdown, this internal review runs counter to the spirit and intent of the law. The whole reason for the new laws, and the appraisal management companies existance, is to remove the lenders influence, and have the appraisal process be independent. When USAA explained to me a few days ago that the appraisal had been completed, and they had it in their possesion, but it was not "approved" I was surprised by this additional process. In my opinion they have essentially circumvented the appraisal regulations by placing another layer of approval into the process. They should not be underwriting the appraiser, as long as the AMC is doing their job the opinion of value should be what it is. If USAA is not satified with the methods used then they need to order another appraisal from another AMC, not massage the one they get until it meets their needs or says what they want it to say. This really puts this process back into the pre-meltdown era, where lenders were driving the opinions, and appraisers were just part of their process, not independent as they should be. I just need to know what the appraisers opinion is, good bad or neutral, I need an honest opinion of value, not what USAA approves of its value to be.
Anyhow, we are less than a week from the scheduled closing date, and USAA has managed to take this long to not get a value. I have spoken to a few managers, an advocate, and all seem to want to help, but nobody seems to be able to fix the broken cog in this machine. I am now guessing as to when or if to order the survey, schedule the moving equipment and movers, transfers of utilities, all the stuff that also needs to happen is now just waiting for USAA to do it's job.
@lawnarjax, While we understand your frustration, we ask that you refrain from additional posts about the situation. As this is seen as "bumping" content—that is to say, posts that serve to repeat existing issues. Please look to our "Posting Guidelines" on our "About" section. Future posts regarding the same issue will not receive a response and are subject to removal from our wall. While it is our intention to never ban individuals from our page, if a violation of our guidelines is clear, we will remove the content and block the individual. Thank you for your time. - Robert
Robert, if a new and never before mentioned issue has come up today would posting about that violate the TOS? Can I make a new thread about the new issue without violating the TOS? I feel obligated to share my experiences throughout the process. Please advise.
Well at the risk of being barred from further posts I will give some good news.
The appraisal finally did come in. Right on the money too, so great news there. I appreciate the help from people who stepped in to get this part done. Kudos to USAA loan officer and and Manager , they essentially saved this whole thing from falling to pieces. Put these people in charge and things may improve.
'Post edited for employee security'
Hi, would it be possible for you to tell me who the AMC (appraisal management company) is on the appraisal you mentioned? I'm a certified appraiser myself and I'd be interested in finding out. The AMC is the entity listed as the "client" on the signature page of the 1004 form. It might just say "USAA" and also have USAA as the lender, but it may be a different name altoghether. I'd really appreciate it.