Discriminatory/poor VA loan practices or "how to deny a VA Loan to a Disable Vet using your job and personal bias 101."

[Bent Over Vet]

I have been with USAA for 29 years. Loved the rates and never really had a problem. I always felt taken care of when I called din for assistance. Well until I tried to refinance into a VA loan. It was then that the USAA processing/underwriting decided to discriminate against a disabled Veteran. How nice, right? Interesting enough I found out through many hours of research and pain that underwriting/processing are not USAA employees but third party contractors. Just to clear up any doubts my income, credit score and home equity surpass the requirements for a VA Loan and USAA's requirements. But why look at hard facts, let's concentrate on personal bias and bigoted employees, er make that third party contractors. You can tell the difference between a USAA employee and contractors by the level of service and competency in how they perform their jobs. I took the time to look up what USAA is obligated to do and found out the acts of this particular underwriter/processor team coupled with the "very very busy" and "does not have time to talk to customers" processing department manager Rachel Capable and Dan Howell, (contractors), USAA violated the Fair Housing Act, Fair Credit Act, and quite a few USC sections. Perhaps returning calls or even emails would be a great idea but neither do so. Both state they will get back to someone by the end of the day. Now I am no physicist but 6 days later or never is not the end of the day even a Grunt knows that. I get it, Rachel and Danny don't want to finance Disabled Vets with VA Loans. So why do they contract with USAA? Do they not understand that the majority of customers are service members or Veterans? Do they contract at USAA to deny both home, cars and fair equal service to service member and Vets? That is pretty twisted. Now USAA (contractors) want a Disabled Veteran to understand there are rules and regulations they must follow. I understand that but USAA(c) did not follow those same rule and regulations yet expects understanding on my part when USAA (c) allowed and attempted to cover up lacking discriminatory practices. "just re-apply" sure.. you dinged my credit, demanded I have ex parte communications and when I provide USAA(c) with the name and number to satisfy their requirements, they don't bother. I am not clear why USAA has employed throw outs from Well Fargo, Chase and B of A to violate the service member and veteran customers who have enjoyed many positive years with USAA. These employee may have changed employers but they continue their abusive, discriminatory and illegal practices at USAA. Tell me USAA (c), why insist that the customers fix your mistakes? Telling a disabled customer to "just re-apply" when USAA underwriter/processor lied about asking for documents and then took over 30 days to respond and to repeated inquiries for a status? Why did the processing dept refuse to answer the escalation depts inquiries? Instead retaliating and denying a loan application, over two weeks after the supposed decision, even though the underwriter and processor lied and never asked for additional information they claimed to be missing and had the ability to obtain? The negligence of USAA(c) processing dept would force a disabled veteran to pull another credit score which, if he still met USAA credit score requirements after USAA pulled two scores already (one without permission), would drive up your fees and his interest rate IF he still qualified. I should have realized USAA(c) is incapable of processing a simple VA Loan app when the loan origination dept did not know the difference between a soft and hard credit pull or if you pull credit scores within a 30 day period it does not affect credit scores. In other words the very people "licensed" to do this work have no idea what they are doing. One thing is clear, communication was extremely poor to non-existent on USAA(c)'s part. Complaints sent in via the USAA while received, seemed to go unanswered as nothing changed but got extremely worse. One complaint was funneled to the very third party contractor who was the problem. BRAVO! Give that guy a standing O. Now I must wait while USAA employees try to figure out what happened and see if it can be salvaged. The only real loser here will be a a Disabled Vet who had to endure this mess and unnecessary stress. If it can not be straightened out, he will have to wait for his credit to recover from USAA credit pulls and keep paying a exorbitant monthly payment to a predatory lender he is trying to escape. This has soured my view of USAA. I have read many reviews and noticed that this is happening quite a bit. Again the only ones affected are the homeowners or those seeking loans. Loyalty to USAA is negligible and seems it is only checked if it benefits USAA. The people screwing up are still employed and still profiting off of military customers. If my experience can help other Vets so be it. Rest assured HUD, CFPA and every other alphabet agency have already received a complaint.

[MichaelS_USAA]

We cannot apologize enough for this experience, and we understand why you are upset.  Your feedback is important to us and a specialist will be in contact with you for further assistance.

[Bent Over Vet]

Thank you for your reply Michael,

I do not want apologies. I want the contractors, I have identified, heads on a pike and there should be no less than that action taken. These "people" had a significant negative impact on my family and life when their jobs are  to enhance both. They caused enormous stress, anguish, cost my family money, time and pain which does not seem to end.

I get it, people complain on here. Here is the issue, people who love USAA and have been decades long loyal customers are finding the "service" of USAA to be less than acceptable.

Is USAA trying to purge it's loyal customer base? That is exactly what is taking place.

I have spoken to the CEO'soffice, HUD, CFPA, and  a member advocate, filing complaints with all, and I will be informing  the State of California today. Funny enough when I spoke with the MA she agreed and apologized that USAA screwed up and then stated I am not sure we can salvage this. May I suggest USAA figure out a way to salvage this, fire those responsible and perform a forensic review of each and every contract they have had their hands on,

Any contractor hired needs to be fully vetted. Instead  USAA blindly contracted with a third party with no idea who or what they employ. Personally I have found that the people I dealt with worked for the Big 5 and continued their duplicitious practices in USAA.

It is clear, due to these contractos, USAA has several class action lawsuits on it;s hands from a cursiory review of this site..

Yesterday USAA had a major IT failure. USAA allowed unvetted contractors into a secure site, exposed each and  every member. our personal information and that of our families. How exactly are you protecting the members?

Disappointed is an understatement.

[Eric3742]

I'm doing my own refinance (to a VA) and after my ordeal, I'm done with USAA. Based on the OP, I can concur they are difficult to work with and communicate with. The changes are night and day from when I got my first VA loan 8 years ago in professionalism. I won't take away from the OP's scenario to go into mine. I just wanted to confirm that based on my recent experiences, I have no doubt in my mind that the OP had a poor experience.

[Eric3742]

Actually, a friend of ours just went to a USAA VA mortgage (first) and they were so appalled by USAA. They warned me that things had changed. I didn't listen.

[Jessie M.]

How did you know the reason you were denied the refi loan was due to veteran status? 

In regards to credit score, different companies use different algorithms for calculating credit score. While there are regulations about how long certain things can remain on your credit report (which USAA has zero control over) things like "if you pull credit multiple times in a 30 day period it only counts as one" aren't necessarily the same for every algorithm. 

[Celeste USAA]

Eric3742, thanks for reaching out to us in Community.  USAA is always looking for ways to improve the products and services we offer to our members. Please contact us at 1-210-531-USAA (8722) if you wish to discuss your experience further.  

[JDS: 55 yr member]

That lame reply to a very specific set of demands from Bent Over Vet means that contract lawyers have taken over USAA's end of this board, which means that this board is no longer of any use to USAA's "members," as is the case with USAA's self-abnegating approach to the mortgage business over the last several years. So go elsewhere for mortgages; this part of USAA's business is not going to get fixed.  (Other than that, USAA remains OK, for now, anyway). 

PS:  Michael's earlier reply said that "We [USAA] cannot apologize enough...."  True, but only one apology is necessary, becuse an true apology (as opposed to a "customer-service" apology) includes a credible promise of reform.  The bottom line is that USAA has not as yet apologized at all.

[Gus USAA]

JDS: 55 yr member,

We understand this matter is important to you. USAA takes note of all feedback from our members. When necessary, we also step in to assist members and provide resolution.

If you have a situation that you would like assistance with, we encourage you to contact one of our banking specialists at 1-800-531-8722.