Decade long USAA member treated very badly by mortgage department

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Regular Contributor

 Just spent a very frustrating day yesterday dealing with USAA and their horrendous customer service practices in applying for a mortgage. We applied over 3 weeks ago and got a quick pre-qualification. We submitted all requested documents and were told by the cheery person that we had fantastic credit, over 800 with all 3 ratings agencies, we have over twice the value of the home in USAA assets, we own a much more valuable home free and clear, we have no debt and documentable income into six figures. All looked perfect.

 

So I started inquiring about the status of things like the appraisal and all. My loan officer as "out of the office" for a week but her message indicated someone would be working on our application. I called the next week and got an updated "out of office" message indicating she would be out another week. I called the number she left for assistance, got yet more voicemail and left a message. Nobody called me back.

 

After 3 weeks I finally got the loan officer on the line. She seemed flustered and went through a lot of jargon to get to the bottom line that we would not qualify as my wife works as a contractor and they could not count the income as she has not done it for two full tax years. This was known at the outset so I'm mystified as to why a) were not told at the time of application b) were not contacted ever by USAA to inform us of this and c) why it takes over 3 weeks to get someone on the phone for a very time senstive financial matter.

 

We appealed to a supervisor who simply read the same script and rejected us. As USAA NO LONGER WRITES HOME EQUITY LOANS we could not go that route and borrow against our current paid off home.

 

So we'll be leaving USAA and taking our $400,000 in assets to an organization that knows how to communicate and doesn't waste time. We could find not one person who could explain this adequately, nor who seemed the least bit concerned about impact on us, and they weren't too concerned that we were abandoning USAA. We're writing a letter to the big honcho but I doubt he'll ever see it, much less respond to it.

 

Just plain awful excuse for service, horrendous attitudes, and near contempt for long time solid customers. It was a horrendous experience to say the least.

7 REPLIES

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Gris Gris Man,

 

We regret to hear of your experience with your mortgage application. I have shared your comments with a colleague in our mortgage area for review and response. We look forward to the opportunity to discuss this matter with you further. Thank you. -Gus

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Would love to discuss it. Especially since I got a solid pre-approval (not a pre-qualification) from another reputable lender within 48 hours of USAA dropping me like a deadbeat.

 

So how do we discuss it?

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Gris Gris Man,

 

We appreciate your posting your concerns in the Community. Your comments were shared with a colleague in the Mortgage Area and someone will be in contact with you to discuss. Your patience is appreciated while we review and reach back out to you. -Gus

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This is how you are treated after 10 years of having accounts with this bank (we are not members--we are account holders--USAA membership is a marketing strategy) Try being at this zoo for 23 years. Terrible service, rate gouging of their "members" at their most vulnerable times and usaa taking no responsibility for their constant mistakes. Shameful
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I had an equally terrible experience. I was lied too on several occasions by every level, including the CEO Memebr relations team. And as for their advocates, I'm still waiting for a call back for over a month. They simply don't care about the members. Worst leadership I have ever seen In a company. They should be ashamed
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horrendous,

 

We appreciate you sharing your concerns via Member Community. This is certainly not the way we want our members to feel about USAA. Your comments have been shared with a colleague for review and response. -Gus

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Well, here's where things stand in the end. USAA's various inquiries were entirely unsatisfactory from a customer service point of view. Actions speed louder than words USAA. Despite someone "looking into it" all we got were tepid apologies. The USAA loan officer and supervisor were adamant that we wouldn't qualify. Despite this another reputable loan company expedited our approval, got us the loan at a rate just as low as USAA and allowed us to meet our target date for closing. This company was efficient, helpful, friendly, and obviously working hard for our business.

 

USAA not so much. In addition we found out USAA is not much interested in selling insurance any longer. We had to drop USAA for both car and home owners since they no longer sell insurance in Michigan, at least that is what we were told. They are agents for other companies but one might as well deal directly with ASI and *P*rogressive since the only function USAA seems to provide is to refer customers to those companies. I was told and I quote, "Don't worry we act as agents for ASI and so you can still handle everything through USAA." That now is clearly not the case.

 

So, now USAA has kicked us to the curb for mortgage lendering, homeowners insurance and auto insurance. To add insult to injury they also without any action on my part transferred the proceeds from a mutual fund redemtion to a non-existent savings account. When I called about it I was told, "There's nothign we can do. Just wait and see if the funds are returned to your mutual fund account in a few days." Thanks for nothing. It is USAA who pitched me on using them for investments but when my money goes missing they can't do anything.

 

All they seem to be able to do is savings and checking anymore. I get all these idiotic survey requests and hints about fantastic new products and services. Yet they never materialize and in the meantime all the services I retained them for originally are rapidly disappearing. They've gone from top of the heap to bottom of the pile in customer service. For us I think it may be time to move on and take our sizeable portfolio to an organization that still strives to mee customer needs. I can no longer endorse USAA for much of anything.