Avoid USAA for Conventional Mortgages - A Warning

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Regular Contributor

In over 25 years I have had a total of one negative issue with an auto policy but now I have had a VERY negative experience with a home Mortgage. It was so terrible I absolutely believe that USAA must be outsourcing its mortgage application process to a 3d party. I do NOT believe the people I was dealing with were USAA employees and if they are then the problem is far bigger than I suspected. I almost did not post since I cancelled my mortgage application and have moved to a small local bank who is treating my like USAA did when I did my first mortgage with them 20 years ago but just in case this board is monitored by USAA employees I wanted to add this to the "historical" record as I am CERTAIN that sometime soon they will be evaluating this vendor and hopefully fix this problem by moving to a better vendor. It does make me VERY concerned with how this move to Schwab is going to go.  One piece of advice if you are considering USAA for a conventional mortgage I STRONGLY recommend you get a second option and have a "fall back" plan. 

12 REPLIES

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@TomlnTulsa, thank you for taking the time to share the negative experience you had with our mortgage services. I regret to hear we did not meet your expectations causing you to take your business to another bank. This is definitely not what we want for our members. Your concerns are important to us and I can assure you I will forward your post to the appropriate team for further review. Thank you for taking the time to post this evening. - Rhonda 

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Thank you Rhonda - but I don't think you have to.  I tried to "escalate" and get help with my issues and there was no interest in helping me. There is something very wrong over there but I would feel better if you could confirm my suspecision that they are not USAA employees. I do NOT belive USAA employees would behave as the "rep", "supervisor" and "director" of that group did.  I do think USAA needs to rethink using that vendor...they have no idea how to treat customers.

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Hello TomlnTulsa. Thank you for your feedback. Although we are required to use a third-party vendor to assist with conventional appraisals, I would like to ensure you that we monitor the service being provided by them to verify they are meeting the needs and expectations of our members. Thank you again for taking a moment to share. We wish you the best with your mortgage transaction. 

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Could this be the future of USAA?  Just like America we outsourced to the lowest bidder for all of our manufacturing - and look where we are today!

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Ouch #CWGoldsmith, I regret to hear that you feel this way. I was able to locate your profile and will engage the appropriate area for review. Once reviewed they will contact you via this channel. -Emily 

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I have a similar experience with service reps answering calls and questions with employee responses.  My escrow needs to be adjusted for a property tax exemption due to being a disabled veteran.  I wish USAA would spend less time in addressing me by my in service military rank and just fix the problem.  Just common courtesy and actually addressing the issue will go much further than speaking a certain way during the call then failing to fix the issue after the call is over.  Its very frustrating to see the advertisements claiming that USAA is there to help veterans with their needs.  

 

The main concern that this service company USAA uses for mortgages is to process payments.  They are constaintly telling me the amount and when my payment is due when I call about the above stated issue.  I am current on my mortgage and it is strange to constantly be reminded of this unrelated payment topic when I call to follow up on an unresolved issue that the service company and USAA are failing to deal with.

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So quick update. I was able to pretty easily cancel my in process mortgage with USAA and was able to move to another bank. That process is moving much quicker and more easily than my USAA experience. I am thankful that USAA did not give me any "grief" about refunding my appraisal fee. The Cancelation was pretty painless.  The entire morgtage debacle has shaken my confidence in USAA as I will NEVER consdier them for a home loan again but I am certain if I had gotten this far with another company I would have had to "fight" them to get my money back.  I do worry about my investments as USAA seems to be outsourcing more and more. 

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USAA has been outsourcing its mortgages for decades.

I bought a house in 1998 in CALIFORNIA and went through an outfit in NEW JERSEY.

no issue back then.

Thru the early and mid-2000s, I had inquired online on several occasions and noticed many negative comments with whoever they had as vendors at that time. Hence, I never refied or obtained a new mortgage with USAA over the following years.

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I am going through refinancing my home right now and have had nothing but issues the whole time.  I am BLOWN AWAY at the decline in service with USAA.  I have dealt with multiple people throughout this process and have felt like NO ONE has their act together.  This experience makes me doubt staying a member.  If I ever refinance or buy again in the future, I will not do it through USAA.  Sad to see the customer service go downhill.  Wish I could go back in time and refinance through someone else.  I was due to sign my papers today at 1.  Got a call from the notary, who was supposed to handle the signing, saying she has no documents and can't get a hold of anyone.  So I'm literally sitting here with NO CLUE what's going on and NO communication.  FRUSTRATED!!