USAA No Longer Handles their HELOC-It is PHH Mortgage (Terrible Company) DO NOT USE USAA

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Meg16
Contributor

I recently got a letter from an attorney representing "USAA" informing me that I had missed 6 payments on my HELOC and they were threatening me with foreclosure.  I have missed no payments.  I called the number for USAA and was told they don't handle their mortgage information inhouse, and they had to transfer me several times to get me over to who does (PHH Mortgage).  The rep on the phone could not find my file, could not confirm any of the data for me on my HELOC, and reiterated that they were going to start foreclosure proceedings unless I payed them $$$ ASAP.  I went back to my bank, pulled the payment history, and got in touch with a friend who does home loans/refinance.  There was no negative credit history on my credit reports.  He got someone from Cisco Financial to conference call with me to "USAA."  Once the rep knew another financial rep was on the phone, they "suddenly" found my records.  Oh, my, you are right, you did make a payment less than 30 days ago, and no, you have not missed any payments.  They are not stopping the threats though about trying to take my home.  I am refinancing and getting as far away from USAA as I can.  What a shame that you are now in business with a predatory lending establishment.  I am filing a formal complain with the Banking Commission and the AZ AG's Office.  I read that PHH just lost a class action suit and has had to pay out $45 MILLION.  They are still using their "shock and awe" tactics to strong arm people for money or even take their homes.  DO NOT USE USAA

12 REPLIES

Like this user, I had a terrible experience with PHH Mortgage.  This is a really BAD company, and I would recommend anyone to stay away from them.  It is more than disappointing if USAA has decided to use them for any services or anything for USAA members!

Welcome to the new USAA under Stuart Parker's leadership.  No way I would ever you USAA for a mortgage much less anything else.  The old USAA that we knew and loved is dead.

Meg16, I just read an interesting article about PHH Mortgage. They were recently sued by the U.S. Department of Justice for violating federal law when it grabbed the servicemembers’ homes. They violated Servicemembers Civil Relief Act which protects members of the U.S. military from foreclosures and other collection efforts while on active duty. Federal attorneys claimed PHH knew or should have known the homeowners were servicemembers and therefore protected by the law but seized their homes anyway. It really does seem that USAA is changing its culture when it comes to supporting the military family. Actions speak louder than words--and the amount of words members have been fed is significant. :-( I hope you're able to get them to resolve this simple issue.

I am sorry to say that our experience with PHH was not satisfactory either; and this was when we were in the process of paying off our home mortgage loan just before I retired.  I could not believe the ineptness and sloppy correspondence received out of the PHH office.  I was glad to get rid of them and advised USAA to be careful when choosing affiliate companies.  A bad experience with an affiliate tarnishes USAA also.  This was over five years ago...I am surprised that USAA did not disengage perhaps sooner?  In fairness to USAA Insurance Company, I have experienced a good relationship.  I became a member while on active duty in 1974 when I purchased an auto insurance policy and have been very satisfied with USAA products and services ever since.  I have auto, home, and life insurance policies, as well as investment accounts at USAA.  In 1974, USAA was a much smaller company and was able to provide efficient and personalized service.  In order to survive and profit, perhaps the "we have got to grow and expand" thinking took over which no doubt has affected the old fashioned tailored response and treatment which once prevailed at a great company. 

Hello @blumark0, we are sorry to hear about your experience. USAA does still service all HELOCs in house at USAA Federal Savings Bank. Currently our fixed rate Home Equity loans are serviced by Nationstar. Any loans that PHH services would have been a cash out first mortgage. USAA currently only uses Nationstar mortgage for loan servicing of our mortgage loans. 

Not happy with other affiliates of USAA..What the heck, do they not get it that we trust them to pick good affiliate companies to subscribe and promote to for aviation and collector car insurance clients for example.  If you loose my trust once, you are gone.  Dang...

Too bad.  We servicemen know when we have been had.  Jeeez

@blumark0, I regret to hear you have not had a good experience with our affiliates. I'd like to learn more about what happened to better assist you. Could you please share your concerns via private message? Thank you.

 Hve said and sent to you previously my comments; get with your end at improving things in your office; I have better things to do out here bud!