July 28, 2016
Dear Mr. Parker:
My husband (combat USMC veteran) and I have been long time USAA members. His father is a USAA member. His grandfather was a USAA member. We have many products with USAA: auto insurance, homeowners insurance, life insurance, banking, and our current mortgage. This is despite the fact I have worked for one of your auto insurance competitors for many years. We have loved USAA and recommended it to others. But that has now all changed due to the horrific experiences we are having with your mortgage division right now. It will result in you losing our insurance and banking business.
My husband and I are purchasing a new home, to be our primary residence. We obtained pre-qualification through USAA, and have provided every document you have asked for. Leading up to our first close date of July 18, we and our realtor were nervous because we could not get a response from Anna Gonzales or Jessica Hernadez. Neither would return our phone calls or emails. We left many messages asking if they needed anything else from us to be ready to close. Our realtor finally had to leave a message saying “if you don’t call me back I will assume you have been fired” before Anna would return her call. As July 18 grew nearer, we became increasingly anxious. It was clear USAA had not been working the package and would not be ready to close.
Indeed, USAA was not ready on July 18 (in fact, on July 18 we received a list of more documents USAA needed, despite our many phone calls asking if they needed anything else), so rescheduled for July 27. USAA then missed that second closing date as well. Anna says the second close date was missed because she is still awaiting employment verification on my husband. And no wonder she is still waiting, she initiated that request after business hours the night before closing! My husband works for the DoD and has security clearances, so calling his employer after business hours the night before closing is not likely to result in success. Employment verification should have been sought a few days before closing, not the night before.
In addition to USAA not working our package in a timely manner, when we received our Closing Disclosure on 7/25/16, and it listed cash to close at $19,029.70, consistent with the Loan Estimate we received at the time of application. Late Monday night 7/25/16 (~8pm) we got a call from Anna that USAA had miscalculated our closing costs because USAA thought my employer would be paying closing costs at the table. We NEVER told USAA that. We've understood since January 2016 that only if we used Wells Fargo or Quicken Loans would my employer be direct billed for closing costs. We have known and communicated that if we used any other lender, we would be reimbursed afterward. Anna said our new cash to close is $25,921.73. We then received a new Closing Disclosure on 7/26/16 listing the cash to close at $25,921.73.
Looking through the two Closing Disclosures, it looks like the difference stems from a $7,000 seller credit listed under "due from Seller at Closing" on the 7/25/16 version, but not in the version we received 7/26/16. I don't understand why the timing of my reimbursement of closing costs is reflected as a $7,000 credit "due from the Seller at Closing." I also don't understand where the figure $7,000 came from.
We have asked USAA for a written explanation of this mistake, and they have not responded. The last thing we heard was two messages Tuesday night (7/26) that (1) Anna needed our help expediting employment verification for my husband; and (2) Anna could not explain the $7,000 because it was “too complex” to put in writing and she would only discuss it over the phone.
After I began writing this letter, I received another call from Anna which I can only describe as argumentative and combative, saying that USAA did not make a mistake, because she cannot find documentation of where the $7,000 seller credit came from. She literally stated that because she can’t explain where it came from, it is therefore not USAA’s fault. I would love to hear whose fault it is if not USAA’s.
When USAA missed the first close date they scheduled (July 18), my husband and I started shopping around for other financing. We are working with Wells Fargo and Towne Bank in Norfolk, VA, as well as a mortgage broker. Our real estate attorney and all of these other mortgage specialists concur that USAA screwed up.
At this point, we hope you don’t come through on another close date, because we would pay money just to not do business with USAA. If you had admitted these mistakes and apologized, we would have stayed with USAA. But despite repeated messages to Katie Gayler and Jeremy Stockton, we have received nothing but silence: no explanations, no apologies. This is unacceptable.
We will be moving all of our business- banking, P&C insurance, life insurance, and our mortgage- elsewhere.
So far, Wells Fargo and Towne Bank have been a pleasure to work with, pleasant, responsive, and actually working the package, unlike USAA.
Thank you for listening.
Wish I could say I was surprised. I've been trying to get a resolution for my auto claim for months. When my car was repaid, I got the phone call it was ready the day before a holiday and I was out of town. USAA has refused to cover the cost of the rental car past the date I was notified.
Almost the same thing happened to me with the same mortgage representatives:
After a full month of working with XXXXXXX XXXXXX and sending him duplicate copies of many requested items, our final signed mortgage documents were emailed to us on July 25. The documents were immediately signed by my husband and me. We were told that we were ready for closing scheduled on July 29. At that time, Mr. Garcia went on vacation and we were given to another mortgage processor, XXXXX XXXXXX. Ms. Gaylor contacted us at 5:00 pm on the evening before closing and told us that we were missing a document. Although the missing document had been provided to Mr. Garcia over 2 weeks prior to this, we sent the document again to this new processor. Ms. Gaylor told us that she now had all of the required documentation and that the package would be sent to the final reviewing agent. Our title agency lawyers stayed late at work that night hoping to receive the mortgage paperwork. They did not receive the paperwork that night. Early the next morning, we attempted to contact USAA Mortgage Department regarding our documents. On the morning of closing, Ms. Gaylor was also on vacation and we were told that manager, XXXXXX XXXXXXXX was at a doctor's appointment. There was not a single mortgage processor in the office at USAA on the morning of 29 July, the day of our closing. A 9 am closing was scheduled with 2 realtors, title company lawyer, sellers and buyers. USAA still had not sent closing documents to the title company. My husband had to spend over 3 hours on the phone with the resolution department at USAA in order to get the closing documents sent to the title attorney. Meanwhile all parties were waiting at the title office for the paperwork. This is extremely unprofessional. My husband and I are both veterans who have banked with USAA for over 23 years. This is not an appropriate way to treat long-time customers of USAA.