I just got off the phone today with a senior representative in the home mortgage department.  FRUSTRATION is the only word that can describe my feelings at this point in time. 


I was almost at the very end  closing on a home refinance when I received a call from the loan processor stating there was a problem because we didn't have a "private road agreement" on file with our county.  You say, what is a private road agreement??  Even my county officials and officials at FannieMae were not aware of this obscure new rule that states in order to sell your home that faces a privately owned road you must have an agreement in writing about how the road is maintained, and what to do if someone defaults on their responsibilities to maintain it.  All homeowners on the road have to sign it and it has to be recorded in the county records.  Because this is a new FannieMae regulation (April 2014) nobody even knows about it.  USAA would not accept any "grandfathering" to this regulation even though our road is over 20 years old. 


USAA loan processor was not honest enough to just say that their underwriters refused funding the loan.(even though they could have still done it according to the regulation)   She kept saying "it was out of their control" due to FannieMae-placing all the blame on FannieMae. 


My advice to USAA is if this is so darn important and you are willing to refuse a loan over it, then one of the questions you need to ask right up front is "do you leave on a public or private road?"  If that loan officer had asked me that in the very beginning of the loan process, we wouldn't have wasted all this time!  Since this is such a new regulation I can tell you NOBOBY has one on file with their county, much less even know what it is.   I live in Pima County in Arizona, where many people live on private roads-and these houses are not shacks-mine alone is worth close to half a million dollars. 


Very disappointed in USAA.  I have everything with them-life insurance, car insurance, home insurance  investments, and credit card.  I had wanted to move my home mortgage with them-not anymore! They do not look at cases individually; they have become a huge corporation that no longer looks out for veterans and their families.


Dear Carol,

I apologize for the service you received and I can understand your disappointment. I would like to get a specialist in contact with you to see what can be done about your situation and for us to get details about what we can do differently in a situation like this next time. We appreciate your membership and look forward to hearing from you. Please send us an email at socialmedia@usaa.com (include your member number and the details you provided above) and we will be in touch shortly. Thank you



I'm not exactly sure how you can blame this on USAA.    Based on what I have read, Fannie Mae will not permit the issuance of a Mortgage without this agreement.



You can blame USAA Mortgage because their mortgage department has serious issues with being informed, informing their clients and managing the entire mortgage process. They have had problems for years. They should ask any and all question that could make the loan not viable upfront.  I have mortgaged through them twice with both being horrible experiences. They still managed to close but they made it as painful as possible.  We only used them the second time hoping they had improved to the level of all their other services and they have not. We now use Navy FCU for all mortgages. They still run like a small company and are extremely flexible. The process was so seamless compared to USAA I kept thinking they were missing something but it closed on time with astonishing little effort on our part. They even surprised us at closing with a 2500 towards the closing. The title company even commented they had never seen this. They changed the document an hour before we closed. USAA just cannot seem to get their morgage department to the same standard as all other USAA services.

ATEXAN,  My experiece was total different,   I Financed and refinancing and refinanced with USAA which was the easiest and seamless experience..  I banked with Navy Federal in the 90s, they are a good out fit also.


I had a bad experience when I tried refinancing with USAA about 3 years ago. I fully expected to have to pay for the home appraisal, but I was disgusted with the person they sent. I live near a very big ski resort in the Northeast and there is no shortage of realestate companies and appraisers who are extremely familiar with the area. USAA sent a lady from 5 hours away! She drastically under-appraised my property. When I got a copy of the report, the photos she had included in the report WERE NOT EVEN FROM MY HOUSE! She also said that there were no properties near by for sale to compare to. At that very point in time the house across the street had just sold a month earlier and the house next door was for sale! She was just too lazy to do her leg work and wanted to get back on the road for the 5 hour drive home. When I called USAA to politely complain and request another appraiser or a refund for the lousy one I had gotten (the wrong pictures in the report should have been enough) they snubbed me and told me I was out of luck. Oh well, they lost a good loan to another mortgage company. I try to do all my banking with USAA, but this experience infuriated me.

Dear SeadogMainiac,

I am so sorry to hear of your poor experience with us three years ago. We are always looking for feedback from members, so that we can improve. Thank you for taking the time to post about your situation. I am sorry we did not assist you when you needed a different appraiser. I have sent your feedback to our mortgage department to ensure something like this does not happen again in the future. Thank you.

I have since talked to another loan company-they also said I would need a private road agreement, however, unlike USAA, they sent me a sample one to view, gave me basic instructions and information to share with my neighbors, and also mentioned it would not need to be notarized. It could be entered in during the closing.  USAA's mortgage division needs to get up to speed when approaching issues such as this case. Being helpful and proactive could have made a big difference in my case.  The mortgage division instead basically said "sorry, we can't help you."  Going the extra mile to help your members (and it really didn't take that much) would have created a much more positive experience, and ultimately, possibly a successful business transaction for both of us.
P.S  Brianna from USAA-I sent my information the way you stated-still haven't heard anything from USAA.

Thank you for following up Carol, I will follow up again to make sure someone reaches out to you. Thank you.