Time to find another lender. I must get 1 or 2 IRRRL solicitations a day from multiple companies. The claimed benefit is "no documentation" along with the reduced payment. It sounds like the rep you spoke with didn't understand what you wanted to do.
Please bear in mind, the mortgage industry has had a lot of changes since 2015 (with TRID and RESPA TILA) and USAA is required to follow mortgage regulations in order to remain a compliant company. With this being said, there are a lot of factors that determine when a VA IRRRL streamline refinance allows "limited documentation" vs a credit qualifying application that requiring credit underwriting and "more documentation" to be provided. The person you are referring to who initiated an IRRRL a couple weeks ago may not have had the "same factors" as your IRRRL loan application. I pulled up your IRRRL mortgage application, and noticed a few things that require "credit underwriting" therefore more documentation is required to be provided for your loan. Below is information copied directly from "Chapter 6" of the VA Lender Handbook:
An IRRRL is a VA-guaranteed loan made to refinance an existing VA-guaranteed loan, generally at a lower interest rate than the existing VA loan, and with lower principal and interest payments than the existing VA loan.
The principal and interest payment on an IRRRL must be less than the principal and interest payment on the loan being refinanced unless one of the following exceptions applies:
If the monthly payment (PITI) increases by 20 percent or more, the lender must:
Although VA does not require an appraisal or credit underwriting on IRRRLs, any customary and reasonable credit report or appraisal expense incurred by a lender to satisfy its lending requirements may be charged to the borrower and included in the loan.
No credit information or underwriting is required unless:
I hope this helps explain things better. Please let your Loan Processor know if you change your mind and would like to proceed with your VA IRRRL application ASAP, otherwise it will be processed for the withdrawal per your request. Thank you for being a loyal USAA member for 18 years! - Heather