After insisting I provide individual check and wire transfer documentation, most of which were related to my selling of some firearms from my collection, on who and when and what they received they have now moved on to what they refer to as their right to my past tax returns ( both for my self employment as well as my current employment, despite my not wanting to claim either)
Read the below and see what you think about their demands for my income history and note one of many communications I have had with USAA that they refuse to answer the actual question I am asking about income:
"Despite having 40 years with USAA, as a result of my complaining about weeks of no activity on my application for a mortgage, the trio of loan processors, Ms XXXXXXX XXX, Ms XXXXXX and most recently Ms XXXXXXX have retaliated against me for the complaints I was forced by their inaction to make.
They have harassed myself and my wife( just after she suddenly lost her sister) and they among other things have threatened the loan being turned down, made us submit 3 and 4 copies of the same document,used the IRS as a threat and just generally have attempted in every way they can think of to retaliate
Most recently they cite Ms XXX had Ms XXXXXX send me the following, when I questioned why I have to submit past years returns on my self employement, despite my not claiming the employment for income and not wanting to use the employment for assets or income purposes and not needing or wanting to use my current employment for asset or income purposes
The information you are asking for is under Chapter 4 page 14 and 15 Self Employment income verification.
USAA Federal Savings Bank, USAA
9800 Fredericksburg Road, San Antonio, Texas 78288
usaa.com | facebook.com/usaa | twitter.com/USAA
I have replied numerous times verbally and in writing and pointed out as I do here on a communication;
‘Ms. XXX- you refer with your co workers to chapter 4 , pages 14 and 15 of the VA requirements to count income for a house loan or determine stable income. In so far as my retirement and VA payments are not based on this chapter and the fact that I don't want or need to count my current employment or stable income potential of any current or self employment this chapter and these pages are not applicable as I have stated for weeks
This is absolutely not a reference to anything except income to be counted. As I have stated all along we are not counting that income and we are not making an determination of stable employment
Your allegation that this information must be provided is false and retaliatory in nature.
Note from Community Manager: Due to our Moderation Guidelines any reference to employee first and last names will be removed.
I can certainly understand your frustration. As I mentioned in one of your previous posts, as a Member Community Manager I don't have access to your member information to review your history on this issue and offer any guidance or recommendations.
I will share when we were purchasing our home last summer we had to provide several years of tax returns. It was a long, long process. I can relate to your frustrations from my personal experience. I realize my experience doesn't help in your situation; however I just wanted you to know you are not alone when it comes to experiencing this type of request.
We would like the opportunity to explore all options to help. As such, we ask that you please click here to provide us with additional detail and your member information. You can also reach a service specialist at 1-800-531-8722. We hope to hear from you soon.
Also, due to our Member Community Moderation Guidelines any reference to employee first and last names will be removed.
I understand the mortgage loan process fairly well both from personal experience and from 33 years in the professional investment advice business. I seriously doubt that the actions you describe were retalitory. If they were, then every one of the many mortgage companies I have worked with both professionally and personally were out to get me. If I believed that then I would fall into the psychological definition of "paranoid."
That you have a stable income from something like a VA pension or some other perfectly stable source of income is only part of the picture when applying for a loan, and more specifically when adhering to the very stringent requirements now in place for mortgage loans. If you have a self-employment background in the last seven years, the potential exists that your self employment activity has generated some substantial potential liabilities.
I once advised a person who had a current employment with a good income stream but who had been self employed in the recent past. That person was deeply concerned that his investments be in a position protected from bankruptcy because there was a distinct possibility that he could be the subject of a court-ordered loss resulting from bad debts related to the business he started.
The net result is that a history of self-employment needs to be explored in the underwriting process for a mortgage. More, a series of past tax returns will also be demanded to document if there was a large write-off for that business activity. Tax write-offs are financial losses and suggest the possibiliy of carry-over liabilities as well as a behaviour that could repeat. These are not nice things, but they are examples of conditions that were overlooked in past mortgage applications and which led to foreclosures at great loss to the federal government. New leglislaion now requies that a mortgage applicant suffer a level of financial scrutiny not unlike an military aviator's qualifying physical! Like that physical, mortgage underwriters are now requied to look (and dig) in places that most of us assumed were totally private!
The mortgage application process is cumbersome, uncomfortable, and often duplicative. That does not make it retaliatory. To paraphrase an aphorism often referred to as "Hanlon's razor," Never attribute to malice that which can be explained by bureaucratic miscommunication. Robert Heinlein wrote in "Logic of Empire" (1941), "You have attributed conditions to villiany that simply result from stupidity." In this case it was not the stupidity of the USAA representatives, but of a regulated system with multiple masters, all competing to close the barn door after the horse is long gone.
I have escalated your comments to ensure a banking specialist looks further into your situation. The specialist will be reaching out to you personally to discuss your loan application.
Thank you for taking the time to post here in the community.