USAA Has Really Gone Down the Tubes

Posted by bcd on 2012-12-02:

As a very satisfied USAA customer I would appreciate details beyond "USAA left me standing at the altar twice in a row on this real estate deal" to assist me in evaluating my relationship with USAA.

Posted by bobtuba on 2012-12-03:

OK, you asked for it. ;) I did mortgage pre-approval, filled out all the forms, etc. for our new home. This builder didn't use construction loans, instead, he builds your home on a lot owned by him and sells the whole thing at closing. All along the process, the mortgage people at USAA kept saying yes, yes, no problem. The builder purchased the lot we wanted, the plans were complete, engineering analysis done, etc., and he was ready to start. The last thing he needed was a so-called "plans and specs" appraisal for his own security -- to be sure the house would end up being worth the loan value to avoid difficulties at closing, at which point the appraisal is updated to reflect the actual construction. USAA told me they didn't need a plans and specs appraisal, only one at the end. I explained to them (again) why this was needed, and after weeks of back and forth, they finally ordered the appraisal (I paid for it). Then, after more weeks of delay and no communication from them, I rattle the cage to discover that underwriting had disapproved the appraisal (reason: construction not complete!!) and that was that. All my attempts to talk to someone who could make a decision instead of look at a cookie-cutter checklist were thwarted. I had to scramble to arrange financing elsewhere, at an institution where they understood this simple builder's requirement.
I was going to insure this house with USAA. I previously had a FL policy on another home that was sold. Their rules are you can replace a FL policy with another one for your principal residence within a year. Because of the construction delays, partly caused by USAA, the house was not going to be completely finished within that one year timeframe. I called them months in advance to talk about this and said I was willing to start the policy within the one year even if the house wasn't finished yet. I was reassured every step along the way that it wouldn't be a problem, they would either start the homeowner's policy in time, start a builder's risk policy and convert it to a homeowner's upon completion, or waiver the one year rule. Fine. Everything was fine until it came down to actually doing it. I called to start the homeowner's policy, which was issued and immediately retracted -- disapproved by underwriting (reason: home not yet complete). As I tried to explore the other options suggested to me earlier, all of a sudden I was stonewalled. People bald-faced lied to me repeatedly through this process. Once again, I scrambled to secure insurance elsewhere.
Essentially, in both cases, they said, "Yes yes yes," until such time as they needed to actually deliver something. And then it was suddenly, "No, and don't bother us, we can't help you."
I hope that answers your question!

Posted by J Fernandez, Col, USAF on 2013-01-05:

I am a 50 year member, have all insurances, annuities, etc, with USAA. I agree one hundred percent, USAA has gone down the tubes! Does not even resemble to excellent service of the past. I have found that they hire project managers, consultants, who are NOT qualified. USAA has ZERO project managers who are educated and certified PROJECT Managers. They hire consultants who will work for 1/4 of what USAA would be required to be competent salaried staff. Enough said. I have transferred to Randolph Brooks FCU and SSFCU.

Posted by T Unit on 2013-03-29:

Unfortunately, it is gratifying to find comments reflecting the true state that a formerly great operation has sunk to. I agree and share my dismay at USAA becoming the same type of operation that the civilians have had to contend with for years. Lawyers, taking on non-military clients,grand general office buildings, high-paid (retired general) executives, etc., have bloated the operation, driven up expenses, and forced them into playing games when it comes to claim processing.
Their banking setup leaves a lot to be desired, too. Many promises, but not so many sucesses.
So telling is the fact that members have to use sites like this to vent. Although USAA claims to want stories and feedback, they instantly screen and terminate entries that are deemed negative.