USAA Mortgage. Absolute Disaster. Run and Hide

Frequent Contributor

I used USAA for my mortgage and got serviced to Nationstar Mortgage but it is still controlled by USAA. 

The mortgage process was an absolute nightmare. They missed every deadline and requested things they didn't need and cost me a ton of money. They were never upfront about anything and honestly I got the impression that everyone in the process was incompetent. This company has got way too big, there are no checks and balances and a major lack of proper management. 

This is my 3rd mortgage in my life by the way. 

Nationstar has messed up many of my payments by not applying them how I have asked multiple times and they charged me fees for things that don't even make sense.

They messed up an extra principle payment so bad that I ended up getting mailed a check for $855.00 and they still haven't reimbursed the fees even though they said they would. 

I have been inquiring for over a month now of how I can make weekly or pay every two weeks instead of monthly.

For you younger members research weekly or semi monthly payments vs monthly. It's the difference of several years off your mortgage and many, many, thousands of dollars saved over the life of your loan. 

Today I had a discussion with a supervisor at Nationstar mortgage who had the gall to tell me weekly payments wouldn't help pay off my loan any faster! This is blatant lie. Long story short, after a counseling session with this supervisor he finally admitted that USAA just doesn't accept anything other than monthly payments and will not apply them any other way. 

Even if you make weekly or pay every two weeks your money will sit in an (unapplied funds) status until the end of the month and then they will make your monthly payment so they can collect their full interest amount.  

This is the only mortgage company that I have had that wont allow me to make weekly or pay every two weeks to pay down my principal faster. 

I was told to make an extra separate payment towards principle if I wanted to pay my loan off faster. "like I've got an extra $300 or so just lying around" 

Bottom line. They will lie to your face as they have lied to me many times. If it's not a lie it will be deceptive. If it isn't a lie or deceptive it will be an incompetent employee and they will give you the run around. They wont be upfront with anything until you dig in hard about it. None of the departments communicate with each other. It took me over a month to get this information. 

Shame on me for using this company. Save yourself a huge mistake, lots of money and a lot of frustration.

Just find another company to get a mortgage from.

Check out other reviews about USAA mortgage. I read a ton of them and thought to myself "there is no way they can be that bad" Well I'm here to tell you they are and it's worse than I can write. 

Run away. Find another company and don't take the low interest bait like I did. I will be refinancing with another company as soon as it makes sense for me financially. Maybe someday USAA will change its policy and remove it's greed but until then when the time comes I will be saying goodbye to USAA mortgage. 

Now wait for the USAA representative response.

"Please contact us to discuss this with a mortgage professional"

 

21 REPLIES

@K84, I am very sorry to hear about the situation that occurred. I have forwarded your information to our mortgage department for review. They are out of the office for the weekend but once they do return on Monday they will be looking into this. Thank you for your patience. -Colleen

Thank you Colleen but this is futile at this point. Unless USAA changes it's policy then there is no point in forwarding any information.

I wrote this post to warn other people about the shortcomings of this mortgage company and hopefully help others avoid what I went through getting this loan and help others avoid some of the things I have been dealing with recently. 

I didn't write it to try and receive any help for myself or bash USAA or Nationstar. This was a very honest and open post and USAA / Nationstar can review my account and notes on my account to confirm.

This mortgage company can't even put the proper transaction history on my paper statements. I can't wait to receive my 1098 forms at the end of the year and check those for errors.

I realize you are just the middle man here and you haven't done anything to add or subtract to these problems and I thank you for your reply. 

I'm sure when the mortgage department receives this information it will be treated the same way the rest of my mortgage process was handled.

If I do speak with anyone again I'm positive I will get the same answers I have been getting since last November and I will still have the same problem otherwise Nationstar would have provided me other payment options as most other banks and credit unions offer.

Like i said in my last post shame on me. I should have confirmed if USAA offered the payment option I want as most institutions allow you buy into them for a fee.

If this company wanted to be open and honest they could refund me the home inspection fee of roughly 1000$ that through the lending process they said I needed and I didn't. They could refund me the termite inspection they said I needed but I didn't. When they failed to meet the closing time line and cost me another month and half rent do you think they will refund me that? Maybe they could refund me the silly $25 dollar fee they charged me for the mistake they made.

*All this would require someone to go back to November and talk to the lenders and investigate a pile of emails to see what happened. Do you think that will happen? I highly doubt it. That would require too much integrity from a giant corporation. As long as they get their interest nobody cares and life goes on.

Like i said as soon as time and financial ability allows I will be refinancing with another institution.

Respectfully,

11 year member

 

@USAA - Member is correct - when USAA misses a closing due to their own issues, they should make good on any additional cost(s) to the member.  USAA is providing a SERVICE and should treat their members as though they actually are providing SERVICE.  Based on the posts on this site, missed closing dates are a problem (we personally experienced this).  Member is also correct that most banks will accept bi-weekly payments and apply them IMMEDIATELY to the mortgage and not hold them in a suspense account.  Is USAA/Nationstar not savvy enough to figure out how to do the calculations?  If not, I have a nifty Excel worksheet that I could share with USAA or I could recommend commercial software that is very good that many accounting firms use.  So not only does USAA pay some of the lowest interest rates around on their checking, savings and investment accounts, they don't apply payments right away on their mortgages (and credit cards) so they can collect additional interest. 

NSueZ. Thank you for your reply. It was inspirational to me! I remember when USAA had some of the highest interest rates on their checking and savings accounts. I also remember when USAA Investment Management Company had decent returns and low expense ratios.

I could start a whole new thread about USAA Investment Management Company but I will leave that one alone or poke just a little. I jumped ship on them a while ago.

The day I had to explain to an employee how to do a direct rollover and the day one of their traders told me that I couldn't do a direct rollover back into my TSP account (another lie) or incompetence, who knows. That is when I moved all of my assets out of USAA Investments.

So. If people don't know. You can rollover any qualified IRA back into your TSP account if you choose to do so at anytime even after you retire with a simple one page TSP-60 form. It's a back door to continue contributions to your TSP after you retire. TSP has the lowest expense ratios for long term investors maybe competing with VanGuard. 

Ok. Getting back on track. When I was talking to Nationstar who is one of the largest servicers of mortgages in the US. I offered to write a paper check on a weekly basis or every two weeks and write on said check exactly how I wanted my funds applied to my mortgage. Seems pretty simple right?

I was told that all checks received just go though a scanner and are simply cashed on the day they receive the check. There isn't even a human reading the memo line on the check you mail in. So writing four checks postdated a week apart is out of the question as well. Or even two weeks apart. 

Your post inspired me and made me realize that USAA has simply grown too big and isn't about its members anymore and at some point I will not only be moving along from USAA mortgage but I will be moving along from USAA all together. I will be  finding a new financial institution that hasn't outgrown its management capability. Probably my local credit union.

Thank you NSueZ. 

HI @K84, we definitely do not want to see you go. I will have your concerns forwarded to a subject matter expert for further review. ~ Samantha

Samantha thank you for your reply. As I have said in my previous posts I am not writing on this forum to receive any help for myself I am writing to inform others of the the things that have been happening to an 11 year member.

I'm not trying to be rude by saying this but do you really think that this "subject matter expert" cares about one person in USAA's 11.9 million members? I'm sorry it's just kind of funny to me. 

I pulled this off of USAA's member page...

We've earned our members' trust by providing convenient banking, competitively-priced insurance, and a comprehensive suite of investment products. 
***As a USAA member — you're a person — not a number***

I don't believe this statement anymore. Eleven years ago I believed this but not know. 

Maybe this subject matter expert can requisition all the emails between myself and all the lenders and people involved during my loan process and this subject matter expert can make their own decision if I'm a person or just a number.

Again from my last posts maybe USAA/Nationstar will come good for some of the mistakes they made and that I had to deal with. 

I highly doubt that any of that will happen. I got sold off to the lowest bidder after my loan process was complete and now the only thing that matters to this mortgage mogul is its interest payments. These posts are for other members not for me. 

Respectfully. 

@USAA - Subject matter experts usually are not very helpful and many times cannot solve problems, sometimes they just make excuses or blame the member.  How does a subject matter expert fix a missed closing date?  How does a subject matter expert fix the misinformation provided by a customer service representative?  How does a subject matter expert fix that the vendors that USAA now uses are not always the best in class?   I became frustrated with USAA's customer service several years ago - it wasn't that I expected USAA to be perfect, but I did expect that any mistakes be fixed ASAP, which sometimes means immediately especially if there could be a huge financial impact.   We have slowly been moving our money out of USAA, but upon my retirement in a couple of weeks the movement will probably move at a much faster pace.   And K84 is correct, these posts really are for other members to be informed, not for USAA to feel good for saying that they are going to have someone look at our concerns because I think for the most part that is not working out very well.  

I believe the only reason USAA *said* they are having a subject matter expert look into things is to give the illusion to everyone reading that they actually care and are going to do something. I got an email from a loan originator yesterday asking me to contact them and further discuss. 

**We received details regarding your mortgage experience with USAA. While we sincerely regret your experience was not up to the Best-In- Class service you deserve and expect from USAA, we appreciate your willingness to provide us with feedback is used to identify ways to improve our service to the membership as a whole.
If you would like to contact me to share any additional details of if I can address any questions or concerns, please feel free to call me at 800-531-8722 extension xxxxxx or a reply to this email will be routed to me. My office hours are 7:30am to 4:30pm CST Monday through Friday. 

We value your business and the opportunity to serve all your financial needs.
Thank you,

Loan Originator Identifier #xxxxx
Loan Origination Company Identifier #xxxxx
USAA Federal Saving Bank
USAA means United Services Automobile Association

I left out this woman's name and credential numbers out for professional courtesy.

What I got from this email was 1: Please call us to tell us what else we screwed up 2: Just the demeanor and context of the email tells me that they don't intend on doing anything to remedy the situation. Otherwise this email would have stated so.  

If they planned on coming good on any of the issues a good manager would have investigated details of the situation so they have a plan to fix them. From my past experience with USAA mortgage I'm quite sure that this woman didn't look at much before she wrote me this email. 

That is not what this email was about. This email was a cop-out to give me the illusion that something may get fixed and further waste my time. This email was also written so that USAA can say they communicated back to me in some fashion.

Also. I 100% guarantee that I will get the same answers and run around that I have got from the beginning. I will post the reply message when or if I decide to reply as proof. 

If something was going to get fixed it would have been done already.

I'm very disappointed with USAA right now and I am glad I can bring light to these issues for younger military members and their families so they don't have to deal with these issues or unknowingly get taken advantage of by a giant mortgage company who's only concern is getting their interest payments. 

USAA is in the business of trading/selling mortgages these days. Maybe they will sell mine again to a better company who won't rip me off with interest every month?

All I am asking for is that my payments be applied on the day I make them and not be held in a suspense account (unapplied funds) so I can continue to be fiscally responsible, pay off my mortgage many, many years faster save thousands of dollars and support my family. That doesn't seem like a very hard thing to do or an unreasonable request. 

Respectfully, 

11 Year Member 

Retired Chief Petty Officer

Disabled Veteran

USAA Federal Savings isn't pleasing many of it's members apparently, with all the flack and almost tiresome communications I'm reading. They put up a smoke screen until you go away. They don't care. They have their Billions. You, huh! I'll buy you 2 or 3 times over and still have change left over. OH! That's my USAA left over change no way you aren't getting it.