Navy Federal Credit Union Merrifield, Va Complaint - Discrimination - EQUITY LOAN

Review by AIRDALE143 on 2011-09-14
I am a retired SKCS and got an equity loan back in 2005 from Navy Federal Credit Union of which I have been a member since 1986. I paid off the loan early December 2010. NOTE: I retired with 20ys in 2007.

I applied for another equity loan and have been given the run around. I was told everything was going fine and had to supply more paperwork. They questioned the fact that I had my mother down for a life estate, and decided that they do not do loans with life estates. The following week my mother’s name was removed. Navy Federal then said I had to supply a Municipal lien. (It cost $25.00 and they would not reimburse for it) The certificate showed there were no outstanding balances. Now, remember, I received a loan with all of these facts in place back in 2005. The only difference between then and now is my age and the fact I am now retired from the military. They called me after receiving the certificate and said they had to send all of the paperwork back to underwriting. Of course, they now are denying me the loan of $35,000 on a home with a market value of $249,000 minimum with no other mortgages on it. My credit score came in at 766 and 835. I receive a naval pension as well as a pension from General Electric that would cover the payments. I also work a full time job and a part time job. Today I received in the mail their statement of Credit Denial
-Income insufficient for amount of credit requested
-Excessive Obligations in Relation to Income

I only have one other mortgage with a balance of $140000 on a home valued at $450,000.

I am being discriminated due to my age. My advice, once you retire from the military get as far away as you can from Navy Federal.
Comments:2 Replies - Latest reply on 2011-09-14
Posted by leet60 on 2011-09-14:
I can understand your frustration but don't see where discrimination comes into play here. Most lenders, in regard to mortgages in particular, have severely tightened their requirements since the housing market fiasco. It is likely their inocome requirements have changed since your first loan.
Posted by Dan on 2011-09-14:
I have to agree with leet, it may not be discrimination as much as it is new banking rules and requirements. I have a mortage with my bank and have had it for 7 years with never a late payment. When I tried to re-fianance, not taking any money out of the house mind you, just refiance the existing balance which is $25K lower than before I was denied. My credit score is in the high 700's, I have paid off any outstanding debt since my last mortage, my house is valued $30K over what I paid for it 7 years ago and am making $20K more a year and I was still denied.

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