I was initally given a preapproval for a VA Home Loan through USAA. I told the loan officer that I received a 1099 from my employer, I provided all requested documents, as well as additional documents. They allowed me to go through to entire home buying process. I found a house, entered in a purchase contract, and had the VA appraisal conducted. Once everything went to the underwriter, they decided to make my loan inelgibile stating that the VA would require 2 years of 1099 income; however, in my case, this isn't true. VA has an exemption written into their policy (VA Pamphlet 26-7, Topic 2, Section J) that allows people with related work experience, extensive specialized training, and proof of ability to generate finances for future needs to not have 2 years of 1099 income. I even called the VA Regional Office to confirm I was on the right path. They later stated they denied my loan due to being unable to verify my income. VA reached out to them to inquire on my behalf and USAA left out that they told me the VA would require 2 years of 1099 income and proved false information to the VA to substantiate their claim. I am HIGHLY disappointed in USAA because they had all my information from the start. If my loan was going to be ineligbile, they should have never given me the preapproval and allowed me to spend money on inspections. When I reached out to them for further clarification, no one returned my emails or my phone calls. I am beyond DISAPPOINTED that an entity that prides themselves on serving veterans and their families would handle my situation the way that they did.
Man, that sounds so disappointing. I wonder why USAA would not even stand behind their underwriter's decision enough to respond to your specific questions in writing, which is a requirement under federal law for all mortgage lenders. I am sure that you probably have started to do your own research, but let me provide you with a link to some more information about mortgage regulations and who enforces them: https://www.investopedia.com/ask/answers/[removed sensitive data]/who-regulates-mortgage-lenders.asp
It looks like you need to start with a complaint filed with the Consumer Financial Protection Bureau (CFPB): https://www.investopedia.com/terms/c/consumer-financial-protection-bureau-cfpb.asp
The document I linked also has some other interested federal agencies that investigate mortgage complaints, such as the FDIC (for banks) and the NCUA (for credit unions).
I wish you the best of luck. Please report back how things proceed if you feel like it. I would love to hear that things got made right for you!
I am sorry to hear of the way you feel. We intend on providing a positive mortgage experience, and we understand an adverse loan decision is not what anyone wants. Our underwriters are familiar with the VA guidelines - and they actively reference guideline information including the specifics you listed to make a decision. Unfortunately in your situation, the underwriter could not confidently agree to make this exception and approve your income. When you get pre-approved and begin an application with a loan officer- they would too have an understanding that you may be eligible, but it would be an underwriter who would make a determination. Veteran- we truly appreciate your service and wish you the best of luck. Thank you. -MO
@USAA - I like the confidence that you have in the underwriters and loan officers. I too am familiar with the working with USAA on a mortgage application (not VA) and have found that the process from start to finish is unprofessional, disorganized, and rampant with misinformation and miscommunication. In the process of working on our loan, they could not even figure out how many paystubs we needed to provide and could not figure out the difference between being paid every two weeks and twice a month. The ONLY thing that kept our loan on track was ME and the only person who kept it real (meaning honest) was ME. I am an accountant and I knew what was required and I tracked EVERY piece of paper sent to USAA. I cannot tell you how many times I heard "You haven't provided us with the information" only for me to pull out the tracking information and tell them who signed for it. It was not one of your finest moments USAA. And no, no one needs to get back to me - this happened a few years ago but I remember it like yesterday - it was that bad. So my words of wisdom to all USAA members is to run as fast as you can from USAA for your mortgage needs.
@USAA Thanks for your reply; however, I have to disagree on the knowledge of your loan officers and your underwriters. As told by the VA Regional office, I fully exceeded the requirements for the exception and my proof of income was sufficient. As a matter of fact, I was told the exemption was put into place for medical providers such as myself. It's upsetting how your loan officers and underwriters lacked the ability to efficiently work my mortgage loan or even give me enough respect to respond to my request to discuss the outcome.
On the up side, I actually recieved three loan approvals based off the same information that was provided to your mortgage department...and yes, with the full backing of the VA. This was my first and last time dealing with your mortgage department. As a matter of fact, I will not be recommending your mortgage department to others. Due to this negative experience, I have actually been contemplating whether or not I want to stay with USAA.
No thanks to your mortgage team, I closed on my new home recently!
I am proud to say, "I am an extremely happy new homeowner."
I have been with USAA for 18 yrs, bought my 3rd home thru USAA, good interest rate, great mortgage team. That was 2010
now its 2020, I am trying close on my 4th and final home, OMG !!!!! I am lock into contract for home, we are suppose to close in 3 weeks 20 Jul, my loan has been pass off to 4 different loan officers, no experaince, no comunication, my realtor has had it with the incomptents of USAA mortgage loan officers, USAA request for information to upload to the website is like a 10 yr old input it, they ask for the same document 5 differnt times??? My realtor told me if i am going to make closing I am going to have to find another lender. I spend $$ a lot for appriasal, home inspection, Pest inspection, not mention VA wants to dump a EEM mortgage on me, I don't know what this is? there is nobody at USAA to explain this or anything else......I feel your pain, after this I will relook my assn
with what use to be a awful company.............