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USAA / mortgage

1 VA, United States Review updated:

USAA is terrible!!! If you have to deal with them for a mortgage, don't! The mortgage processor and the underwriters act as if it's their money. They don't not return calls, emails and so you never know what's going on. We were constantly asked to send them documents that they said they received. I believe the mortgage processor kept our file on his desk and didn't do anything with it for days. The gov't needs to step in and stop the military soldiers and veterans from using this bogus company that is screwing the service members and their families. Had I seen all the complaints that I've seen in the last week about USAA, I would have never dealt with them!

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  • Hw
      6th of Dec, 2008
    0 Votes

    USAA

    USAA sold me mortgage to US Bank. I applied for a loan with USAA and next thing I know, USAA will not provide services. US Bank has an unfriendly website and bad customer service.

    Do not use USAA for a mortgage.

  • Ju
      25th of Jan, 2009
    +3 Votes

    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!

  • La
      27th of Feb, 2009
    -3 Votes

    All of you that are "hacked off" about USAA selling your mortgage, I suggest you get your facts right before you talk. First of all, yes they do sell them to 3 companies- GMAC, PHH or US Bank . HOWEVER - USAA still hold s all servicing rights with these companies, these companies still work for USAA, They just service USAA Mortgages, meaning if you are pissed off about something you should complain to USAA Intermiediate department that handles issues with members and the servicing companies. As mad as you are cause they "sold" the mortgage, ( to add, I am sure none of you know even what that means, you just hear that and think its bad) USAA Still holds all righths to your loan, meaning it will never be sold again on the market. Incase you didnt realize when you log on to USAA.COM You still see your mortgage balance and has a link for you to pay your mortgage. If they truly sold it, why could you still see if your own USAA Member Login page?
    @justme - You need to realize noone allows for you to pay your own taxes /insurance if your loan to value is over 80% or if you are doing anything on an investment property. You seem to hacked off by using the word "extorsion" It wouldnt past it by me you still have all your produts still there over 53 years right?? - Lessson 101 for you sir

  • Uw
      11th of Mar, 2009
    +2 Votes

    Larry Bird- must work for the legal department at USAA-hired to hide the truth. USAA sold me to GMAC_worst in the world. Extorcion-ruined my 777 credit score. Their policy- oh we can't help you unless you go 30 days delinquent. After that they make you wait 30 days to review your case. Larry that makes 60 days. Pathetic & criminal Larry. Why don't you go lose your job. Good luck finding a new one. Why don't you sell your house to get out of trouble. OH darn, you can't without losing everything. You can thank the banks & Bush for that. Shut up Larry. Get a life.

  • Do
      15th of Sep, 2009
    -2 Votes

    lol, #1 - y'all need to learn to spell and write with proper grammar. Then maybe your complaints will actually be heard by people who won't think you're high school dropouts.

    #2 - you signed a document during your closing where USAA stated that they would sell your mortgage to a servicing company and detailed all your rights under the agreement. So, yeah, it sucks. But they warned you.

    #3 - I am not a big fan of US Bank. I've been doing my banking with USAA for years and I love them for everything except for the mortgage servicing. yes, I read the documents that I signed and knew they were going to do it. Doesn't mean I like it. US Bank's website is not nearly as good as USAA's.

    #4 - It's US Bank that should be complained about here. Not USAA. Stop your whining.

  • As
      19th of Nov, 2009
    0 Votes

    USAA also sold my loan to US Bank. I was told that they would not. I am not pleased with US Bank.

    I sat next to a VP on a flight out of San Antonio. I asked him why USAA does not provide notice to applicants.

    He responded that it is standard industry practice and that they would lose their competitive advantage. They regret that they must use deception, but until regulations change ... they have to continue to "lie." There CSRs are instructed to deny the practice.

  • Em
      28th of Nov, 2009
    0 Votes

    This is common industry practice. USAA uses GMAC, US Bank, and PHH. I just refinanced from Wells Fargo to USAA/GMAC and was told my loan would be serviced by GMAC from the get-go. So far I have no complaints about USAA mortgage. We closed escrow within a month from the initial application and the process went quite smoothly.

  • Ka
      3rd of Feb, 2010
    +1 Votes

    I had 4 different people, one a supervisor tell me different things today. The integrity of USAA is no longer. I spent over a hour on the phone starting a loan appt for a home we wanted to make an offer on. I told the agent up front how we planned to rent out our current home once our offer was accepted. He said no problem, you have reserves. The last person told me a whole different story. That I would have to have my house rented out for a year before I could get a loan for another home. Where would I live during that time? The agent's logic was lacking. . USAA gets worse each time I call and stories change. Their excellent customer service needs to be changed to terrible along with AIG.

  • Sa
      4th of Feb, 2010
    0 Votes

    If your thinking of going through USAA to buy a new home be very careful. first off your going to be paying $350.00 for a good faith estimate. Charging for this is agianst the law according to RESPA. There customer service in this section has to be the most un-educated individuals in there whole company. How can this company operate with out complying with VA rules or RESPA rules. If you decide to use this company be sure you now your rights and the regulations becuase USAA dosn't. Ref - VA pamphlet 26-4 and CFR 38, along with the RESPA handbook.

  • Lr
      9th of Feb, 2010
    0 Votes

    Member for nearly 10 years.

    I have a second mortgage that was started in the summer of 2007. Until last September the payments were always on time; that's when my wife lost hours at work and we fell behind (we also have two vehicle loans, a credit card and insurance with them). I contacted their Member Assistance Team who agreed to move the delinquint amount to the back of the loan, providing I made three consecutive payments starting January 10. The first was made on the first, with two more following each payday. Here's where things have gone south:

    1. Though verified with the M.A.T., we keep getting harassing phone calls from the mortgage/banking section (sometimes minutes apart); they eventually confirm that we have an agreement and are meeting it; ongoing since January. When told to stop the calls, the caller informs us to keep expeting calls until the loan is caught up (though all information is in the computer stating we are paying as agreed). We have stopped answering their calls and are in process of changing our phone number.

    2. Phone call from the MAT received today informing us that our agreement was cancelled due to non-payment. Not more than two weeks ago I spoke directly with the team and, without giving dates or amounts, the member confirmed all payments and dates as indicated on their website and that we were current. Today, the member couldn't find those same payments (specifically the January 1st payment) though I was confirming what I was talking about ON THEIR WEB SITE! Basically, the first payment was set up by them as an automatic payment; I was not aware of this and had set up my own automatic payment through my local bank. When discovered I called and asked for the extra payment to be sent back, and it was reversed. The representative at that time confirmed the initial payment had been received.

    This is deja'-vu of what happened with my truck loan; essentially, I was granted a second loan to add gap coverage. Not two weeks later they call wanting the first payment (second loan had 45 day deferred first payment). After wanting to ask how a company can run with with employees suffering from rectal-cranial inversion I instead asked about my second loand. They couldn't find it and I was forced to re-finance at 2% higher interest and $40 higher payments.

    There have been other minor issues that have a negative cumulative effects, as well. Until this issue I have been pleased with their customer service and lower costs. I'm guessing the economic realities of our times have stained the guilding and are starting to eat through the armor. We will not be incurring any more debts with them and my love for their insurance is now tenuous at best. For piece of mind I will be shopping other insurance before renewal.

  • Al
      3rd of May, 2010
    0 Votes

    I applied for a mortgage loan with USAA. I was conditional approved and was set to close on May 4 as long as I provided specific paper work, ie: bank statements, 401k statements, tax returns, relocation letter stating no adverse change to position or pay. Friday, April 30, I signed the closing papers for the house I was selling. Just after signing my house over, USAA calls to tell me that my letter from my employer is not good enough and they can not give me the loan. This is 2 1/2 day before closing on the new home. Never the less, I lost the new home, I do not have a home for myself or family and pets, as well as all of my personal belongs are on the moving truck to Florida. Thanks USAA.

  • Ve
      15th of Sep, 2010
    +1 Votes

    I am a member of USAA and have yet to experience the benefit of doing business with the organization. My fiance' and I were sooooo happy to get approved by USAA to become members. Many people told us, time and again, how grateful they were to be awarded the ability to use them for savings, insurance, and loans.

    Immediately upon deciding to purchase a home, we contacted USAA. It all seemed to be going quite well until the the mortgage application was turned over to the "Mortgage Processors".

    The good faith estimate that USAA provided to us seemed a little high. With a 225, 000 purchase price, the closing cost estimate (not including the 10% downpayment, was 0ver $13, 000. Upon seeing this high estimate, I began calling the Mortgage Processing department reps, one after another, without any return phone calls. I finally contacted a manager of the department who informed me that they were simply too busy to return my calls. Completely unacceptible.

    If you go to the mortgage rate web page that USAA has up right now, it will display a few rates. Some may seem competitive. But you have to read the fine print. These rates are based on the following sample situation:

    Purchase of a single-family detached home.
    Primary residence.
    Loan amount of $100, 000.
    20% down payment.
    Located in Georgia (used for estimation purposes).
    Credit score of 740.
    Lock period is 45 days (rates must be locked by applicant).

    Today, Sept 15th 2010, a rate of 4.375% can be achieve by paying 2.25 points on the loan (this would be about $4500 for me at closing). Without paying points, my mortgage rate was quoted at 5.0%!!! This would have made my monthly payments about $70 more per month.

    USAA rates and estimates are simply not competitive enough to work in today's real estate markets. I shopped around after receiving the bad customer service and came up with a bank who was willing to provide 4.375% with ZERO points! Plus, the good faith estimate is one that makes me much more comfortable to look at. My closing costs with the new bank are down to $8200.

    After speaking to management at USAA about the bad customer service, they provided me a refund on my initial mortgage application deposit of $350. I will say this...that was pretty cool of them. Also pretty good is their "Movers Advantage" program. They award you cash back after closing. In our case, it is almost $1000 back. They allow their members to use this benefit, regardless if you use them for a mortgage company.

    No one at USAA seemed to be on my side. The mortgage processor knew that I was trying to achieve the best rate, attempting a VA loan, and trying to avoid PMI. The VA loan wasn't easy to achieve because it was a condominium (not all condo's are VA approved). And during the process, not one of the USAA reps suggested to me that putting 20% down would help us avoid paying PMI. This would have cost us another $70 per month.

    The trouble that USAA causes during the mortgage application and approval process is like stress-icing on a stress-cake. I would suggest avoiding them. After reading about other people's experience on this forum and the fact that they OUTSOURCE (wtf?) their mortgage lending to US BANK is ridiculous. The mortgage processors are rude and rarely return messages. The USAA GFE estimates are way inflated (realizing this is only an estimate) and in the grand scheme of things this should be as accurate as possible.

    In my opinion and rate of USAA practices, my rating for their mortgage service is in the toilet. They suck, they are terrible to deal with, and should reconsider providing this service to people who serve our country proudly. Basically, we (or our loved ones) put our lives on the line for this nation as some point in time, and this company is taking advantage of us by putting the name USAA on it. "Oh, you're a veteran - use our company, we 'cater' to people who risk their lives for us". Total ###. Shop around. Go to another bank. I won't mention my banks name, but it starts with a W and ends in O. Use at least some other bank instead.

    I hope this helps someone out there before they waste time or get themselves into a financially bad deal.

    Good luck. And this warrior also thanks you for serving.

  • Jo
      1st of Oct, 2010
    +1 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 least 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.

  • 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 least 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.

  • Li
      28th of Nov, 2010
    0 Votes

    I am posting everywhere I can to warn people about USAA and their horrible treatment of customers (members) - USAA Mortgage is run by mexican immigrants, I am totally convinced of that!! Our VA Mortgage Processor, could not communicate well at all (and I think she cursed out my husband in Spanish) therefore, I will tell everyone I know AND the VA loan center about how Veterans and their families are treated.

    I applied alnong with my husband for a VA Refinance a month ago. My husband is 100% disabked as a result if service in Afghanistan- a grenade exploded under him during a "sweep". He is a grunt, an infantryman and would die for his country- and he almost did!! Anyway, our VA Processor kept telling us he has to pay the 3.3% funding fee. Then, she changed her mind and said no he did not. She refused to accept any paperwork from the VA with his rating. This incompetant [censored] mexican lady put us through hell and back! It finally came to the point that our lock expired not once but twice on us. Had we gone through with the USAA refinance, we would have had another half a percent tacked on to our rate.


    I am thinking that this malicious treatment has to be criminal or fraud. I find it hard to believe that a fortune 500 organization would be so "politically correct" in its hiring to reflect the large mexican american population in TX without regard to skill or merit. I understand that they have a consumer reporter on KENS 5 in SA. I have contacted him and they will be airing an expose on USAA Mortgage Services in early Feb 2011.


    I want to vomit when I think of the bad people there.

  • Bl
      7th of Dec, 2010
    0 Votes

    I concur with other posters on the incompetency of USAA. DO NOT use them for their mortgage services. Movers advantage may be responsive, but the loan department could not care less. You would think that a veteran and officer would get better service from a military-affilliated organization, especially after being members for 20 years. After 45 days of waiting for closing, we have still not gotten the approval. We had to cancel closing and are now just waiting in limbo with NO answers about when our family will have a home.

  • To
      25th of Mar, 2011
    +1 Votes

    I am a US Navy War Vet just got out of the Navy. I found the house I want to buy near my new job, I am staying in a hotel till we close on the house. The VA said they can not close before 2weeks to protect us, that is too long for me and my family to stay in a hotel with a new baby.

    We heard high recommendations from USAA, when I called they said they could close in a week, of course I went with them. I Had all my paperwork sent to them that day. They changed my loan processor 4 different times each time they lost all my paperwork and I would have to send everything all over again, including calling the builder and title company and having them send their paperwork over again also.

    We were with them for 2months our last loan processor (Marimar) wouldn't answer the phone or call back till 4:30p their office closes at 4:30p so she would say I'll call you back in 30min and of course she never did. When I would call Customer Service and tell them my problems they would say let me try to track her down, I would be put on hold for about 30min they would come back and say "I'm sorry I can't find her, can I please put you on hold again and call her manager." 2 mins later "I cant get a hold of her either let me try the next manager." 2more manager later and I'm screwed I get to leave a message and not get called back till 4:30p again. This was a daily occurrence.

    I switched banks on Monday, called USAA at 11a to request the VA appraisal and withdraw my application. I received a call back from Marimar at 4:30p she says she needs it in writing she cant take that over the phone. I wrote it out, scanned it in, and email it within 5 mins, called back and I can not get a hold of anyone.

    Tue I try calling USAA I still cant reach anyone, I called 3times that day still not being able to reach anyone (Marimar's managers voice mail was full all day).

    Wed at 4p I receive an email from Marimar requesting the Lender VA ID she said she needs this before she can send us the VA appraisal. I replied back exactly 3 mins later with the ID, and I called her not being able to reach anyone.

    Now it's Thur, this morning I resent the Lender VA ID still have not been contacted back by USAA. When I called customer service they put me on hold for an hr, then would not transfer me to Marimar since my loan was withdrawn. As the customer service lady was playing middle man between me and Marimar, the customer service representative told me Marimar was about to leave. Marimar left with me still on the phone, she sent no appraisal and I will be doing this all over again tomorrow. This has been a daily occurrence with USAA for the past 2months.

    I recommend NO ONE EVER Going through USAA because even when you finally change banks they will hold you up as much as they can even at your new bank. My new bank has everything done all they are waiting on is Marimar to send over the VA Appraisal.

  • Us
      31st of Mar, 2011
    0 Votes

    I was doing a short sale where USAA is the second mortgage. The first mortgage OCWEN agree with the short sale but USAA did not and refussed to accept the offer. They called me 30 times to collect their debt but 1-2 time to negotiate the short sale of the house. They want me to give $ 15, 000 for closing
    and after saling the house they still want me to pay the remaining $ 40, 000
    to $50, 000 over 15 yrs. I am still trying to negotiate the short sale but they are
    terrible comming out with a deal. Their negotiator was relocated or resigned.
    Terrible company for a MORTGAGE. They are supposed to help all service members but they really don't. The other mortgage OCWEN was more cooperative and willing to negotiate. I called corporate to complain and good luck with that also. Use another company for a mortgage.

  • Ai
      22nd of Apr, 2011
    +1 Votes

    USAA Mortgage is a stain on the reputation of a company that otherwise stands head and shoulders above the rest. A few years ago I checked USAA's mortgage rates. They were not competitive, but then I noticed they had a clearly worded statement that they would match any competitor's rates. I decided to go with USAA for my mortgage for three reasons. 1) Their non-mortgage services from banking to insurance to brokerage have been stellar. 2) I wanted to keep all my finances in one place. 3) Based on #2 and protection from false advertising laws, I trusted that USAA mortgage would honor their clearly worded offer to match competitor's rates. I confirmed point #3, the matching rate offer, on my first verbal contact with USAA.

    When our home neared completion and it came time to lock rates, the agent told me the possibilities. None of them was competitive with the market at large. I told the agent that I have a published rate from Navy Federal. Navy Federal did not have the very best rate, but they were close. I figured that they are so obvious a competitor to USAA for mortgages it would be easier to get the rate matching, but then the USAA told me something that hit like a load of bricks. She said they don't match rates, and have no intention of matching anybody's rate. I directed her to the USAA web page with the wording of the offer that could not have been more direct and to the point. She told me that she knew nothing about this and was not authorized to match rates. I asked to speak to her manager, and she obliged. Incredibly, her manager knew about the published offer and told me she would not match Navy Federal's rates. Why? Because she wouldn't. She had the authority to adjust rates. She never offered a good (dare I say legal) reason. She just refused to honor the advertised offer.

    By now it was so close to my closing that she knew I would have a lot of difficulty getting a mortgage elsewhere. I am rarely moved to anger, but although I maintained a respectful tone with her on the phone I could feel my blood boiling. As soon as I got off the phone I applied with Navy Federal. I asked them to expedite the loan, and they obliged. In fact, my processor worked extra hard to make it happen quickly. I had to pay some fees of course to start the process. When I got approval from Navy Federal, I called USAA to cancel my mortgage application. Miracle of miracles, they decided they could negotiate their rates after all. They came close, but did not exactly match Navy Federal's offer. It was close enough that I didn't want to risk my closing date and agreed to the USAA terms. (I sent the Navy Federal loan processor a nice present for backing out of the loan process after she wored so hard to push my application through. I felt horrible about doing that, but if I didn't have my closing by a certain date the construction contract applied penalties.)

    At least I'd have all my finances in one place, which was important to me. So I thought. USAA promptly turned over servicing of my mortgage to US Bank. The letter I got explained that I would still be able to view my loan information through the USAA website, which simply isn't true. In fact, when I called to re-finance, even USAA mortgage agents can't see it. Others here have noted US Bank's mortgage website is not user friendly. In fact, it had a number of bugs that I reported and they were slow to fix.

    USAA mortgage application and servicing does not meet the standards of excellece set by the rest of USAA. Their reputation is their most valuable asset, and they should either stop mortgages or bring up the quality to the rest of USAA.

  • Ra
      26th of Jul, 2011
    0 Votes

    I agree completely we are going through the exact same thing suppose to close yesterday - no information, no return information we have provided everything and more. We have been members for more than 30 years and I have never been so made. Do not use this company for mortgage lending you will be sorry.

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