Navy Federal Credit Union (NFCU) — Mortgage department
From: lcdr stephen fitzgerald usn ret. 21 december 2016
To: navy federal credit union mortgage department
Subj: refinance loan #[protected] disposition
Although this letter will probably fall on deaf ears I am compelled to express my feelings and
Views concerning what happened to my loan. I am a retired navy fighter pilot, and presently a
Captain with american airlines. For many years I have dealt with problems and issues that
Required my full attention that are sometimes life threatening and sometimes simply
Administrative. Just as your department does, I analyze, study, review, question, and then
Make a decision.In the handling of my loan, your department failed miserably. I fully believe
That nfcu will not remedy this decision to my satisfaction. Your mortgage department knows
Everything about my financial history and positions and realizes that this refinance loan is not a
Major deal to me. My concern is with how you treat the enlisted personnel and others who
Absolutely need a mortgage refinance in order to get by financially. These people are implicitly
Believing everything that nfcu might throw out to them without questioning anything. Many of
Them are afraid to stand up and ask hard questions regarding the process. For many years i
Have used my experience, intuition, and sound judgement to make good decisions. I will say
Again... Nfcu mortgage department failed miserably in the handling of my loan.
Here are the details: in late october of 2016 I walked into the nfcu office in jacksonville
Beach to apply for a 15 year conventional loan. My orginal 30 yr loan for my condo was with
Nfcu. I locked into a 2.875% 15yr 0 points loan and was give a 23 december 2016 closing
Date. Throughout the next several weeks I submitted all forms and data nfcu required over
The secure document form system.
Less than 2 weeks before closing I receive a call from my loan processor, bendan schreiner,
Who indicated that nfcu requires ho6 insurance. I had no idea what that was. He said that it
Is for the interior of the condominium for appliances, pipe leaks, interior fire damage, ect. I told
Him that kind of insurance is my business and should be my option, not a requirement for a
Refinance loan with the same company as my original loan. I then told him that nfcu did not
Require ho6 when I closed with them in december of 2007. He said he was not around then
But possibly the home owner's insurance policy had an ho6 for all 12 condo units. It did not
And never has.
We ended the conversation with me adding “i will not buy ho6 insurance, and insurance in
General is an absolute ripoff. ” that conversation was approximately 2 weeks before closing.
Not once did brendan say, “mr fitzgerald, if you do not buy ho6 insurance your loan will be
Denied”. I asked him where are these guidelines for this requirement, and why was I being
Notified of this requirement so late it the process. No answer.
This is not the only time nfcu mortgage threw something last minute at me which was also
Suspect. 1 weeks before the original closing of my condo on 7 dec 2007. I was called by a loan
Processor who said that the loan would now, all of a sudden, require a 3% loan payment that
Was not revealed to me as part of the agreement. Nfcu seems to have a habit doing things
A few days after this call from brendan I emailed him inquiring about the status of my loan. A
Couple days goes by and I finally get a reply from him. He said the loan was denied do to the
Fact that I had no ho6 insurance. Again, not once did he say, or warn, that ho6 was a deal
Breaker. My intention was to question nfcu as to why they seem to make additional
Requirements concerning condo insurance when our association is loaded with insurances.
Professionalism would dictate that my questions would be addessed and answered in a timely
Fashion. That did not happen.
Soon after, on 16 december, 1 week before “closing”, I sent an email to brendan schreider and
His apparent boss, jennifer mckinney, stating “you gave me no indication that if I refused ho6
Insurance that would cause an automatic denial of the refi. Also, you did not have the courtesy
To call me with the potential withdrawing (Reviewing) date of the loan should I refuse ho6. ”
On 15 december I obtained an ho6 quote from southern fidelity. All they needed was credit
Card payment and it would activate. I choose to wait and see if nfcu thought it was
A day or so later I went into the nfcu office here in jacksonville beach and talked to timothy,
The mortgage person who initially started my loan less than 2 months before. He was able to
Get jennifer mckinney on the phone and we spoke about this issue. A few days later, after
Sending another email to her and brendan she called me (19th of december) stating that my
Loan file was reopened but the “lower interest rate was not approved” due to the fact that it was
Now “out of the 60 lockin period”. That was incorrect. It was still within 60 days.
As it stands, nfcu is still not happy with the ho6 insurance I have arranged and they are
Jacking my 2.875% to 3.5%... Before the lockin deadline. Apparently, brendan states that
Nfcu requires an “ho6 policy with 100% replacement cost ($200k for inside damage?) in
Addition to wind and hail. ” apparently, nfcu does not take into account all the other major
Insurances we carry as a 12 unit condo association. Quick question... How is hail going to
Damage my interior to the extent it needs to be insured?
Now that you have fallen asleep, (Or probably thrown this in the circular file) , let me give you my
Overall assessment of what happened and how I see it….
First of all the navy federal credit union and its mortgage department staff submitted the loan
Package for final review knowing it was going to be denied without notifying me prior
To submission. This episode signifies the epitome of a bloated, bureaucratic, unprofessional,
Disorganized, poor decision making, financial institution that obviously lacks the courtesy and
Will to truly help and provide services to servicemen and women. As for the loan processors and
The loan review board (Or whatever they are called) , I hope that your decision making, your
Professionalism, and courtesy drastically changes for the better. I feel nfcu should remove the
Word “navy” from its name. I was proud to serve the navy for 20 years and was honored to
Serve our country. Nfcu has left a bad taste in my mouth and i’m not the only person who