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USAA / horrible mortgage servicing

1 United States Review updated:

I have been a member of USAA since 1953, so I never thought I would be complaining about them.

I refinanced my mortgage last year, not knowing (and not being informed) that USAA now uses US Bank as its mortgage server. Based upon years of experience as a commercial customer of US Bank, I want nothing to do with this customer-UNfriendly bank. Had I been informed in advance that US Bank is the mortgage server for USAA, I would NOT have gone through with the refinance.

I have had nothing but trouble with this loan. Never in my life have I been required to pay my property taxes and homeowner insurance into an impound account. USAA now requires this of me. Worse yet, according to US Bank, my annual homeowner insurance premium is $800, when in fact it is only $400. I am being charged double for this error and no matter how many contacts I have had with US Bank, the record is not corrected.

Last month, without legal basis US Bank demanded that I pay $1, 000 additional into the impound account, in order not to increase my monthly mortgage payment. I sent my check immediately - intending to resolve the errors and get a refund later - and it CLEARED MY BANK 4 days later, on December 12th.

Mortgage Statement received yesterday (dated January 16th) reflects NO record of this additional payment, and my mortgage payment has been bumped up, in clear violation of the instructions I received from the US Bank Mortgage customer "service" rep on December 8th.

HORRIBLE, HORRIBLE, HORRIBLE mortgage "servicing, " unless one enjoys being a target of extortion.

After researching complaints of this type, I realize that this is not an isolated incident -- it is the norm.

I urge you NOT to borrow from USAA!

Ju
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Comments

  • Pi
      5th of Feb, 2009
    0 Votes

    I am getting ready to take USAA to court for mortgage fraud. They have proven to be a completely inept organization that lies and treats customers like second class citizens. Joe Robles, CEO should be ashamed of himself. He and USAA and their partner in crime GMAC should wake up and become part of the solution to the problem they and the entire US financial system backed by 8 years of George Bush have created.

  • Da
      3rd of Apr, 2009
    +1 Votes

    I refinance with USAA and have had nothing but complete satisfaction with how I was treated. In fact, they just sent me a check for $275 which I apparently overpaid at closing. I'm not sure what an impound account is but my insurance and taxes are escrowed into the monthly payment. I like that because I don't have to worry about sending two more payments out each month.
    Sorry you had such a bad experience.

  • An
      3rd of Oct, 2017
    0 Votes

    @David Normal Monthly mortgage payments include Taxes and Insurance. Not sure why this is a plus??? And if your getting happy about a $275 refund payment from closing, I got some bad news for you, that's nothing much.

  • Da
      27th of May, 2009
    +1 Votes

    I also am displeased with the USAA Mortgage branch. I had a loan officer who was on top of things and then out of the blue switched me to Melissa Q. who only would talk to my realtor. When the appraisal on the property came it was full of inaccuracies and undervalued the property by 65K. MELISSA ACKNOWLEDGED THE INACCURACIES BUT STILL ACCEPTED THEM AND SCREWED US IN THE PROCESS. USAA immediately dropped the loan amount stating that they could not loan more than 75% of the value. So we had to renegotiate to the bogus appraised value. The owner canceled the negotiations at that time. If that wasn't enough, I received a credit denial notice after I called to cancel the mortgage process. Not a "sorry we hired an appraiser who is incompetent, " and that led to the demise of your purchase but a freakin credit denial letter!!! And my credit is Great! No debt, high credit scores and two stable jobs in the family.

    DON'T WASTE YOUR TIME WITH USAA!!! THESE PEOPLE ARE INCOMPETENT BOZOS WHO WILL WASTE YOUR TIME AND KICK YOU IN THE ### ON YOUR WAY OUT.

    STAY WITH YOUR LOCAL BANKS AND LET USAA MORTGAGE GO OUT OF BUSINESS.

  • An
      3rd of Oct, 2017
    0 Votes

    @David Ross This is because the appraisal YOU paid for goes to USAA and the USAA underwriters "undervalue" your property/ home to side step the VA benefit that allows for a VA loan at 100% of the value without needing Mortgage Insurance. (Hence they under value at about the standard 80%, thus requiring you to put the conventional 20% down payment)

  • Fx
      20th of Oct, 2009
    0 Votes

    I am in the process of refinancing my property with USAA. I was told and assured that under the Homeowner Affordability & Stability Program if my property was held by Fannie Mae it could be refinanced at 100% LTV without PMI. My appraisal came way below the comparables in my neighborhood as if that weren't enough I was then told that even though my property was at 89% LTV they could not go over 85% therefore, I had to come with $14, 000 at closing. I told ROBERT OROZCO that either USAA was lying or President's OBAMA plan was a scam. I explained to OROZCO that the property was within the guidelines of the program created by the current administration and that I was going to call my congress representative, CNN and contact USAA CEO JOE ROBLES. OROZCO was apologetic and told me he was going to talk to his manager. At the least I should get my $350.00 good faith deposit, since USAA has shown nothing but bad faith and a mere bait and switch tactic. Totally disappointed. First and last time I do business with USAA.

  • An
      3rd of Oct, 2017
    0 Votes

    @FXM See above comment @David Ross, I had the same scenario happen to me in 2013. Will not use USAA ever again.

  • Li
      23rd of Oct, 2009
    +1 Votes

    20 year member with USAA. I will NEVER use them again for a Mortgage. Had wrong information about the title of my house, claimed it was a foreclosure- it wasnt, told me 1 day before closing the house it couldnt sell, lost foaxed documents at least a hundred times, pried into your personal life like you wouldn't believe.
    They may be good with insurance, but they SUCK with their mortgate dept.

  • Ab
      23rd of Nov, 2009
    -1 Votes

    I have to completely agree with the complaints about the USAA mortgage division. I have always had all of my banking and insurance accounts with USAA including checking, savings, money market, life insurance, auto insurance, etc. I come from a military family and recently married an injured veteran and I would have previously praised USAA for the way that they treat their veterans. Their mortgage division is a complete exception to this. The entire process of my original mortgage and refinance have been so bad that I would consider the dealings fraudulent. My original mortgage account was immediately transferred to US Bank after closing, which was very disappointing but I was aware that the servicing of my mortgage could potentially be transferred. I assumed that USAA would only transfer my mortgage to a reputable company. I was wrong! US Bank's servicing of my mortgage has been terrible. I have had all the same problems with my escrow account as mentioned above and customer service has been no help. To add insult to injury, USAA won't even answer questions about my mortgage now that they have transferred the servicing.

    On to my mortgage refinance. As I said, I recently married an injured veteran and we wanted to refinance the house from a conventional mortgage under my name to a VA mortgage under both names. The home was originally appraised by USAA at $240, 000. We would have loved for the appraisal to come out lower to be able to negotiate the purchase price but we trusted USAA to use a reputable appraiser. Only one year later, our refinance appraisal came in at $150, 000 with significant upgrades to the home. The refinance appraisal states that the original appraisal was inaccurate and that the market had only dropped 1/2% per month, which would not account for the new low value. USAA has told me that they stand by the second appraisal (so that they do not have to refinance my home) but that they cannot be liable for the first appraisal since they only chose the appraiser but did not actually conduct the appraisal. We had no choices in this entire process and trusted USAA. Now we cannot refinance and we obviously cannot renegotiate the purchase price of our home a year later.

    If USAA refuses to rectify this situation, I will be pulling all of my accounts from them.

  • Sc
      7th of Jan, 2010
    0 Votes

    We had been satisfied clients of USAA for the majority of their services for the last 6+ years.
    We remortgaged our house with USAA in 2006, and things were ok, until dec 2008 when my husband was made redundant.
    We have been working with an estate agent to sell our house as we can no longer afford it on my income alone, we have had 2 offers made on the house. The first was made In february 2009, all requested paperworks from all parties were submitted and received by USAA, then we waited, and waited, and by July our Buyer pulled out because they had waited too long. A week later we were lucky enough to get another offer on the house, this time a cash offer. All paperwork again filled out, and filed, and acknowledged as having been received by USAA.
    We waited, and waited and our second buy has now pulled out of the deal because of the length of time it is taking USAA to approve the sale of our house.
    It's as though they are trying to force us into bankrupcy, and they refuse to discuss what the problem is with us.
    Terrible experience.

  • Ty
      17th of Jan, 2010
    -1 Votes

    To Schamness:
    Your beef is not with USAA. It is with your loan servicer. And NO, your servicer is NOT USAA. It is one of thier 3 investors they use. It sounds like you are trying to do a short sale, which incase you dont know is a lengthy process. Not to mention the fact, when a bank approves your short sale, they are doing you a favor. So it is wise to be patient and not forget you signed documents stating you would have this mortgage note for 30 years!!

  • Sc
      20th of Jan, 2010
    -1 Votes

    USAA/GMAC has made my life hell. My mortgage, car insurance, home owners insurance, and flood insurance are all through USAA. Prior to October 1, 2009 I would have given USAA praise on their service, but now I wouldn't reccomend them to my worst enemy. I applied for a loan modification on October 1, 2009. It was mishandled, lost, pended, and denied. The reason for denial was that my income would not be sufficient to make a reduced mortgage payment. I don't know how this makes sense as I have kept my mortgage current by using credit cards, selling jewelry, a vehicle, cancelling my health insurance, Purchasing all of my clothing from thrift shops, eliminating eating out, movies, vacations, cutting out all non-esential spending and using all of my savings. In the same e-mail that I received declining my loan modification application, USAA offered to consider me to refinance as I had such a good payment record. They even offered to roll the cost of closing into my mortgage for a house that is currently at a negative equity of $40, 000.00. Being desperate to save my house and credit I called USAA and was finally contacted by a customer relations representative. He told me that he had looked into my denial and that I should submit an additional three month profit and loss statement and that my loan modification would be re-evaluated. On January 15th I was again turned down. Although I have called numerous times and spoken to numerous customerr service representatives, none of them can explain how it is figured that I can afford to pay my full mortgage, but I am not considered able to pay a reduced one. I was even told by two of the customer service representatives that I wouldn't be considered unless I was at least 60 days delinquent. I have reviewed the guidelines for loan modifications and cannot find this particular guideline anywhere. I think that USAA uses the Hope For Homeowners program as free advertisment to attract desperate people who they turn down so that they can offer to refinance again and gain even more profit. I have written to Josue Robles, CEO of USAA, my congressman, and even to the White House in an effort to understand the basis of my denial. So far I have gotten no answers. I am thinking about selling the rest of my jewelry and hiring a lawer to see if in fact USAA is not properly granting loan modifications. I invite anyone to explain the math to me of how a home that is at $40, 000.00 negative equity, in an area where home sales are non-existent, that is current on payments could be turned down. Even if USAA were to for close at at cost to them of about $40, 000.00 to $60, 000.00 and auction the home, it would still not even be worth the mortgage owned. I don't think I am asking for preferential treatment, I just want fair consideration in a program that is offered by the White House in a country where I pay my taxes. If I am too poor to be considered for a loan modification, why can I not then receive food stamps, medical assistance, and government aid? I don't know where to turn to at this point. I am horrified by the way USAA/GMAC has treated me and feel sick about every penny of profit they make from my business.

  • Ty
      23rd of Jan, 2010
    -2 Votes

    Dear Screwed By USAA..
    I wish you luck in trying to sue USAA. You'll lose, trust me. Although I'm sure your story is a bogus overboard. May you not forget that the Homeowner programs offered by the Gov't are NOT mandated by any lender! This is a service that they abide by IF they wish to participate in this. Your cannot qualify for a loan modifictaion, if you are current and making your payment!! By the way, how quickly you forget you SIGNED a 30 year mortgage PROMISING to re-pay this loan. NOWHERE in those documents did it state "if the economy tanks, and your value of you home drops, we (the lender) will modify your loan terms to meet your needs" NO, NOW DOES IT?? Is it the lenders fault you can't pay your mortgage? Is it the lenders fault you lost your job?? NO! Now quit whining about USAA not wanting to help you on your mortgage loan, because first of all it's NOT USAA that has your mortgage loan. They sold it to GMAC! Your writing letters to USAA and alling them to cuss them out- is NOT going to do you any good. You need to take your madness to GMAC if you want any help! You writing the CEO of USAA a letter will get you NOWHERE! This is because USAA does NOT own your mortgage - GMAC does! You did NOT apply for any Loan Modification with USAA- You applied with GMAC and they are the ones that rejected your loan mod- so don't go off on how its USAA. Do NOT forget you signed over 50 pages of documents knowing that your mortgage would be sold to them!! You have nothing on this. I suggest you quit and don't waste any money on rying to get your "loan mod" to work. They don't have to approve you for anything, especially when YOU signed a 30 year mortgage.

  • So
      21st of May, 2010
    -1 Votes

    Well it's may 2010... I, an absolute adorer of USAA, insurance, banking, credit, brokerage; am about to pull my hair out dealing with their mortgage side. Locked our interest rate for a house I didn't know when was going to close, processor NEVER picks up his phone, hasn't responded to any of our agents calls, responds to email once or twice a week, USAA staff, the USAA website, and the third party processor weren't consistent telling us what docentation needs to be submitted, they rarely update the status section online for our mortgage, all of that on top of having no branches. I am well aware of the no branches, but the customer service for my other accounts has been so good so consistently it hasn't mattered.

    I can barely describe my disappointment. This is te first of many many complaints I will be lodging all over the place, especially if we get penalized for not closing on time (I.e. Them locking my rate without my authorization).

  • So
      21st of May, 2010
    0 Votes

    PS I don't care if the processor is not USAA, USAA is the one who has hired them to service USAA members. USAA is the one who tries to make it seemless, a single umbrella, to the USAA member. Even worse is it's my wife's first experience with USAA, she now hates them.

  • Re
      28th of May, 2010
    0 Votes

    All the comlaints sound so much like mine it isn't funny. USAA is the worst company I have ever had to do business with and unfortunately I am stuck with them.
    I had no problems until I refinanced my loan with them. The rep on the phone said they could do everything and I wouldn't have to use a third party. I agreed and then found myself working with a third party in Texas. Then the mortgage rep with USAA went on vacation and two other people who didn't know what was going on tried to handle my loan. After two weeks the other rep returned from vacation and had no idea what was going on and asked me for paperwork that she found on her desk after I said they had already been sent. I refinanced because of a divorce and had a time limit. If I hadn't been in the middle of a divorce I would have dropped them and gone with someone else but I didn't, my mistake. The rep from the title company wanted to meet me at Burger King to sign my papers because he had no office. All of the papers had my ex-wife's name as a co-borrower. I told him it was wrong and he just crossed through her name. Both companies were aware of my divorce because it was the reason for the refinance and I had to send them copies of the divorce agreement. I was VERY particular about the loan amount and what I could afford. At that time the house was worth $181, 000 and I owed $80, 000. I refinanced for $145, 000 with some of the extra to give my ex-wife based on the payments they said I would make. A year after this and 6 months after the taxes and insurance was paid my mortgage payment was increased more than $400 a month and they said the "forgot" about my taxes and insurance. They have never taken responcibility for this and when I could no longer make the higher payment they said they could not help me. They caused the problem but were not willing to help fix it and sent me a letter saying "We recommend you sell your house". By this time the economy had dropped some but still worth what I owed. Because i had been so particular about the loan I didn't qualify for the Obama plan. It doesn't help anyone trying to get a loan they can afford. Only after my house had dropped to $96, 000($85, 000+ below market value and below what I owed) were they willing to listen and refinanced my loan for 40 years at 2% and all it took was 7 months of standing my ground as they played their games.

  • Re
      19th of Jul, 2010
    +1 Votes

    I have been a member for over 30 years. I thought USAA could do no wrong. USAA has provided me with impeccable service; banking, insurance and investments. Great Customer Service! until now. I can't even begin to describe the problems I just went through with obtaining a mortgage through USAA USBank. Poor communications, misinformation and they even missed "guaranteed" closing deadlines. - Retired CDR, USN.

  • Al
      3rd of Sep, 2010
    0 Votes

    My experience with my USAA/GMAC mortgage has been great.
    The customer service people are very helpful and are honestly
    trying to help me. Some of what I read above is about bad appraisals
    and the market... I could complain about those things as well
    (the house was appraised low, and they would only finance 85%,
    we had to borrow money from my partner's mother)... but does
    this have anything to do with the bank??? They are a business,
    they have to protect themselves from the falling real estate market.
    My partner left me and I have been trying to get a loan modification,
    and like I say, the people are very understanding and I have no
    complaints how I've been treated. Tyronne is right, the bank owes
    me nothing. Not everyone should qualify for these programs, it's
    basically tax money that is supporting these programs right? The
    qualifications should be tough. I don't want tax money wasted on
    people that don't deserve it.

  • Do
      23rd of Sep, 2010
    +1 Votes

    I am currently in Escrow on a property and am having the exact same problems as listed above. I am not sure why I thought my loan would be the exception 45 days ago, probably because of the 15+ years of great service from USAA that I have received in the past. For the last month and a half I have spent every free moment on the phone as have my realtor and escrow officer trying to get a hold of the "person most familiar with my file" well 7 days before closing she finally calls back and "isnt so familiar." My loan was a VA (which I thought I had earned the benefits for after 3 combat deployments in 4 years) but she never ensured that the property was VA Approved (which according to the VA is the lender's responsibility) although the initial underwriter ensured me it was. She never got my certification of eligibility and she certainly had no intentions of closing on time. So now I am stuck with a conventional as my only option, paying $300 in PMI a month for a home that would have been VA approved with a 60 day notice. I am warning you, if you are like me and think that because of USAA's great track record in other arenas that they will be great with Mortgages you are WRONG. Guess they need to work on their new "Home Circle" option and make it more customer friendly.

  • Jo
      1st of Oct, 2010
    0 Votes

    Worst...mortgage lender...EVER!!! My wife and I have been USAA insurance customers for almost 20 years without a single complaint...their customer service has always been excellent. When we decided a couple months ago to refinance our original VA loan, we looked no further than USAA because of our many years of past experience with them. 45 days into the loan process, we only now realize how big of a mistake we made by selecting them for our mortgage business. There is a HUGE disparity in the quality of their insurance services and that of their mortgage services!!! The loan processor assigned to us was the most incompetent, lazy, and lease knowledgeable financial services professional with whom I have ever dealt. He never answers his phone, never returns messages left in his voicemail, doesn't respond to repeated E-Mail inquiries regarding the status of our loan...and when we finally contacted a "supervisor", she was quick to promise prompt action but dragged her feet for days. Consequently, we've completely missed the closing date that was originally scheduled, and USAA is now requiring documents from us that have never before been needed when we've applied for home loans and are asking the exact same questions of us that we answered more than 30 days ago soon after we first applied to refinance. USAA mortgage services are a scam...they are not at all interested in providing loans at today's low market rates. Don't walk...RUN...away from USAA financial services.

  • Un
      12th of Oct, 2010
    0 Votes

    Sought to refinance our home with USAA as my husband had been a member for nearly 30 years. Prior to that, his family had been members for many years.

    We turned down three other loan/mortgage companies as we sought personal customer service first vs. costs. Yet, in the end - we got the worst of both...USAA had people from various departments calling us every couple of days, title people calling with information, and within an hour of closing we still did not know exactly what our closing costs would look like, and were given a call to say "oh by the way" you need to be prepared to pay some out of pocket costs at closing. We had asked and were assured all closing costs would be wrapped into the new loan. That didn't happy.

    Do your home work folks. USAA is not the best, most efficient out there. And, oh by the way - they penalize you if you are a good customer with a great credit score, no late or missed payments by charging you extra if you don't do an escrow account with them.

    There are dozens of loan/mortgage companies who want your business even in this economy - and if you have great credit they will do everything possible to waive any fees that are unnecessary like escrow fees.

  • 3t
      15th of Oct, 2010
    +2 Votes

    Please save yourself and DO NOT DO BUSINESS with USAA mortgage. I am posting in sights all over the internet. The mortgage section of USAA are filled with incompetent people. The posting above by "Johny Apples" hits the nail right on the head! The sentence "The loan processor assigned to us was the most incompetent, lazy, and lease knowledgeable financial services professional with whom I have ever dealt. He never answers his phone, never returns messages left in his voicemail, doesn't respond to repeated E-Mail inquiries regarding the status of our loan..." just made my wife and I laugh out lout! It is so true. Unfortunately for us, we also missed our closing date. Mind you, it is not because we do not satisfy all 'standards' for the loan. We more than do. The reasons are simple: USAA is ripe with incompetent people. These employees have very low education and have difficulty speaking english properly. The Supervisor there, called "Yolanda", is someone that certainly should not be in any leadership position. We bargained very hard to get the owner of this particular property to sell at a extremely low price. Now, we may lose the house because Yolanda and her "TwoPac" sidekicks don't wish to work for their income. Can you imagine? On the day of the closing, we had to haggle on the phone with these hoodlums just to speak to someone in mortgaging. Then, they have the nerve to inform us that there are documents missing that I know were either sent in the packet over a month ago or, at the least, should have been told to us were missing weeks ago.

    I say: RUN and throw grenades behind you. DO NOT DO BUSINESS with USAA mortgage.

  • Wa
      22nd of Oct, 2010
    -1 Votes

    Dear 3TourVet,
    From the tone of your complaint, I believe you got what you deserved. You are a racist piece of waste of space. I have USAA for all my banking, even though you may have had a bad expierance with them, you don't need to call out those poor employees by thier names. And then you go call them "twopac" and "hoodlums". Why don't you grow some balls and say your name on here? I have served 2 tours in afghanistan, been in the middle of combat zone multiple times, but would never have the class as you by calling out these people by thier names. Does your comanding officer know you do this? I do hope that USAA's GENERAL JOE ROBLES does get to read this and gets your name!

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