USAA should get out of the mortgage business

USAA should get out of the mortgage business and stick to insurance.


I have been happy over the years with USAA auto and homeowners's insurance products, and have always experienced great customer service.  Unfortunately, that level of customer service does not extend to the mortgage program.


The mortgage process starts out strong, but the closer you get to closing the more the process and customer service breaks down.  I have been told I can't get a HUD settlement statement until "hours" before closing.


The day of closing, it was not until I emailed USAA, that I found out there was an issue with the title and I had to contact the title company.  In short, I wasted a day of vacation, when USAA knew the business day before there was an issue and I would probably not close.


Now I am scheduled to close tomorrow and I still can't get a HUD settlement statement.  I was told it was online on the USAA website - it is not.


I contacted my mortgage specialist and I was told she could not email it to me.  Why not?  It is my information.

So yet again I am getting the run round around and can't review the closing statement and plan how to wire funds to the title company, because either 1) the website is not up to date showing my closing costs and HUD statement or 2) the mortgage specialist can't or will not email the document to me.


So to other USAA members - the stories you have heard about USAA mortgages are true.  They are difficult to work with and will not close on the date you are told.


My advice:

1) If you are a first time homebuyer - go elsewhere - credit union, local bank, QuickenLoans, LendingTree, anywhere else.


2) If you are an experienced homebuyer, and you can use the Mover Home Circle program - it might be worth it to get the rebate for using USAA.  However, realize the process is going to be difficult and probably not meet your time schedule.  You will have to do a cost benefit analyis if the aggravation and lack of cusomer service is worth the rebate.


My advice to USAA - listen to your customers.  You need to either increase the customer service and training of the mortgage department, or stick to insurance and get out of the mortgage business all together.


Dear Phasor,


I am sorry to hear that you have not had a satisfactory experience with our mortgage department. I would like to get someone in touch to review this and see what can be done to have your faith restored in us. Someone will contact you directly, please keep us updated here in community, and let me know if there is anything else I am able to assist you with. Thank you.

Really!???!!  Have that same person contact me also.  YOUR COMPANY SUCKS FOR MORTGAGES!!!!!!!!!!!!!!! 


  I am early in the process... 45 days average closing.  XXXXX I have local lenders beating your rates and processing loans including underwriting in 2 weeks.  This is only the USAA in name of the company that took care of veterans years ago.  I guess being big is more important than customer service.  You're just like Comcast!


  I would love to be contacted by a member of your excutive staff.  But, alas I am sure their ties with the military and caring about veterans ended once the started recieving their 6 digit (possibly 7) paychecks. 


  USAA has touted their ties. . .  traditions in regards to the military.  Maybe the "Stolen Valor act" should be expanded to apply to companies that ride the Veneran's coat tails on their sacrifics... and those like USAA that prey on a protected group of individuals. 





I have passed along your comment to a mortgage specialist for review. Someone will be reaching out to you. Thank you.

To the person who contacted me via phone today:


I would like to add the following for your notes.


1) The substitute mortgage specialist didn't know what was loaded into my file on the web.  My new closing time was 10 AM two days later than originally scheduled.  The afternoon before I was to close, I contacted my title company so I could get the exact amount I needed to wire or for a certified check.  My title company told me they were told by USAA it was uploaded to the USAA website as of 1pm and I could download.  I checked the website and it was not there.


2) I contacted my subsititue mortgage specialist (I have no idea what happened to my first one - he disappeared).  She said it was on the website - when I told her it was not, she was clueless.


3) When I asked for a copy of my settlement statement, I was told I could not receive it by email as it was sensitive data.  Funny how I can email data to a mortgage processor, but they can't seem to send it to me.


4) After repeatingly telling her I needed the settlement statement so I would know how much to get a certified check for, she finally figure out how to send the settlement statement via USAA secure mail.


5) I finally received my settlement statement at approximately 3pm before closing.  There was an error in the principal amount of the loan.  I signed paperwork when I submitted my application I was going to pay the VA funding fee at closing.  The VA funding fee has been included in the loan amount.  Rather, than delay closing again, I accepted that.


It is obvious there is litttle quality control over the process, as I have a copy of the letter I signed stating I wanted to pay the VA funding fee at closing in lieu of rolling it into the loan.  Maybe USAA routinely has people roll the fee into the loan.  Or perhaps you just ignore the paperwork people submit.  Either way it is poor customer service.


As I stated on the phone today, I stand by my statement USAA should get out of the mortgage business.  The level of customer service is not the same as the insurance branch.


In short, I missed my closing by 2 days, and wasted 8 hours of vacation when USAA knew there were issues the day before my original closing date.  If USAA had been in contact with me, and customer service was really a concern, I would have been notified.


You have my hourly rate in my mortgage paperwork.  Multiple that by 8 to derive the figure to compensate me for my lost vacation time, due to your poor customer service.


This was my 3rd time buying a house and I quite familar with the process and I had difficulties with USAA.  I shudder to think what would happen to younger first time homebuyers trying to navigate the process with USAA.


I didn't shop around for mortgages - I went with USAA based on a smooth transaction 2 years ago refinancing a house.  I learned my lesson this time - don't use USAA for a mortgage.




Thank you for the update Phasor. I have made sure your comments are appropriately shared in the mortgage department.

Please note no one from the mortgage department or from USAA customer service has contacted me about my follow-up post.


USAA has not offered any compensation for the 8 hours of vacation I wasted because the loan did not close on time, nor have I heard of any improvements in the mortgage process for other members.


Reading a few of the posts newer than mine, I see the USAA mortgage process is still broken a few months later.


This forum is good for members to vent and possibly to warn other members, but don't expect USAA to compensate you for lost time nor to do anything other than express they are sorry you are frustrated and to thank you for your service.


A really customer service company would compensate me in some way to try to retain my business and to encourage me to do more buisness with the company.

Dear Phasor,

I sincerely apologize that you did not hear from a mortgage specialist. I am going to make sure we look further into what happened with the routing of your feedback and why you were not contacted. We truly appreciate you providing an update so that we can make sure something like this does not happen in the future.

Some things never change - usaa customer service is an endangered species now, sad when so many members are walking away after 25-30 years with usaa. It was good while it lasted but now that it's bad it just keeps getting worse.

Tonight I started refinancing with another lender not affiliated with usaa at all and many former usaa members who are friends have done the same and it was a smooth transaction nothing like the minefield usaa home mortgages are.

No thanks I'm done moving my business with all usaa services elsewhere one by one as I find suitable replacements.

Tired of promises it will get better it will change - usaa reps sound more like politicians than customer service reps.

This is NOT unusual I remember my nightmare of dealing with USAA/PHH they are so AFU it is a miracle they can still write a mortgage. Ever notice how long it has been since they offered home equity loans?  What kind of bank doesn't ?

I'm done wasting my time with usaa mortgages today I tried to contact PHH and LoanCare because I received notification that my mortgage would be serviced by Loancare NOT PHH (after 15+ years). So I called PHH they tried lying to me telling me that the lender sold my loan the VA !!  ROFL I told her the VA guarentees the loan they are NOT the lender so she asks why I was asking about my pay-off amount I said I wanted to refinance because I haven't heard anything good about LoanCare so the PHH rep says why don't you re-fi with PHH !!  

Earlier before calling I googled PHH and mortgages and there were several links saying PHH was selling all of it's mortgages and getting out of the business yet this unscrupulous rep was trying to get me to refi with them !!

No I would not be doing business with PHH or LoanCare had I walked away from USAA FSB when I was getting my mortgage - I was told my mortgage wouldn't be sold ever.

Got my first mortgage with USAA FSB in 2001 and I remember the nightmare like it was yesterday - it was an emotional roller coaster NOT a pleasant experience - so I agree with the other postings here if it is your first mortgage go elsewhere to Navy Federal or Pentagon Federal credit unions they treat you better!!

USAA has literally no customer service or quality anymore. They've lost sight of the service they're known for and now they're too big and just don't care. I've been a member more than 20 years and my father much longer he no longer banks or has insurance with them and I am shopping around as well.