Totally happy with USAA for many years, and then ...

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Contributor
After retirement a few years back, I consolidated all of my retirement accounts (401K, etc.) from three large corporations I worked for over the years into USAA Annuity and IRA accounts. Great!<br><br>I also got my house mortgage from another company refinanced by USAA at a lower rate. Even greater!!<br><br>Before thr first USAA mortgage payment csme due, they sold off the mortgage to another company. NOT GREAT AT ALL! In this phase of my financial life I wanted everything consolidated under one umbrella. They, USAA, pulled the rug out from me with absolutely no warning -- not to mention not asking me as a Member (as opposed to "customer") if it would be okay to sell my newly established USAA mortgage.<br><br>Buyer BEWARE!!

7 REPLIES

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Your frustration with the sale of the mortgage note is quite understandable. I felt the same way after choosing a local bank and banker to refinance - only to have the loan sold within a month. Personally, I think it is a bad practice and leads to all sorts of financial shenanigans like CDOs and MBS.  USAA would be a better financial friend if they avoided this loan divestiture practice or, at the very least, provided an advance notice to the USAA member prior to selling the mortgage.  (just my opinion, of course)

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Red-leg, 

Thank you for sharing your concern. I will pass it through to the appropriate department.


As always, specific concerns can be addressed by contacting a member services representative by clicking here to provide USAA with additional detail and your member information. You can also reach a service specialist at 1-800-531-8722.

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This is really old news but here goes: most banks for MANY years now have been selling mortgage notes in the secondary markets not long after making your loan. That friendly fellow at the neighborhood bank assessing your ability to pay is a museum piece. Today, it is not uncommon for your paper to be sold again and again. If you are sending your payment to a mortgage servicing company they may be reluctant to tell you who is actually holding your note unless you want to payoff the loan entirely. Your paper also may have been, or will be, sliced among several portfolios. Welcome to modern banking practices that almost sunk western economies in 2008.
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True enough, Rob. But banks don't HAVE to play in that game. And USAA is a unique enough institution that they could stand out from the crowd by not reselling the mortgages. They certainly were able to operate in the mortgage business for many years without engaging in that shell game. Taking that sort of position would make me very proud to do business with USAA Federal Savings Bank.
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What is the MBS fee of over $1,000 when I pay off my mortgage?
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US44 victim,

 

Thank you for posting your question in the Community. We have shared your question with a Subject Matter Expert in our mortgage area for review and response.

 

We look forward to your continued relationship with USAA.

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After being charged bogus PMI fees, USAA apologizes, but doesn't pay me back.