NFCU Mortgage Denial / Poor Service

[Anonymous]

After calling NCFU every other day for a week, I found out that we were denied a mortgage.  Medium score: 650; DTI: good.  The lady I spoke with said she did not know the reasons why we were denied but my assigned specialist would. 

Unfortunately, over the week the application was with NFCU, the assigned loan specialist never called, nor returned emails or phone calls.  Not a word.

We're currently waiting on a letter from them with the reasons why we were denied.  Any one else having these issues with NCFU?

[NC_Mtg_Loaner]

What type of loan were you applying for?

Many lenders are struggling with the COVID 19 situation currently, but once (or until) the all clear is given, it's going to be tough sledding for some consumers and lenders both.

I would say to keep looking around.  a 650 score might make you eligible for other conventional, USDA, VA or FHA program(s) and it may just mean that you need to keep searching.

My bank is currently a 620 minimum credit score for conventional, FHA, VA and/or USDA.

[nykos5000]

Government backed loans have now had an industry change due to COVID-19 where 640 is the minimum instead of 580 but many lenders have internal overlays (to please their inventors for what they would call "risky" loans) with 680 being the minimum for FHA/VA loans. I am in the process of trying to lock in a rate as my new construction town home will be ready on June 1st. My current lender is quoting me over 5% for FHA now up from 3.25% a few weeks ago. I am looking at other lenders and they have all said that they now require a min middle score of 680 for FHA. 

[Harvey26]

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@Anonymous wrote:

After calling NCFU every other day for a week, I found out that we were denied a mortgage.  Medium score: 650; DTI: good.  The lady I spoke with said she did not know the reasons why we were denied but my assigned specialist would. 

Unfortunately, over the week the application was with NFCU, the assigned loan specialist never called, nor returned emails or phone calls.  Not a word.

We're currently waiting on a letter from them with the reasons why we were denied.  Any one else having these issues with NCFU?

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I have a friend who works in the mortgage lending there. They changed there score requirements to a minimum 660 due to COVID. Friend has had to make alot of tough calls telling people they are no longer approved. 

[T_Lab_89]

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@Anonymous wrote:

After calling NCFU every other day for a week, I found out that we were denied a mortgage.  Medium score: 650; DTI: good.  The lady I spoke with said she did not know the reasons why we were denied but my assigned specialist would. 

Unfortunately, over the week the application was with NFCU, the assigned loan specialist never called, nor returned emails or phone calls.  Not a word.

We're currently waiting on a letter from them with the reasons why we were denied.  Any one else having these issues with NCFU?

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Yes. This literally just happened to me. Pulled the rug right out from underneath me...I called and no one would return my calls. Pathetic. 

[Anonymous]

Thank you for that information! It helps! I am sure I can get my scores there in the next couple of weeks but I'm just so frustrated that I haven't even been able to speak with someone.

[Anonymous]

I was applying for one of their mortgage products. It was not FHA nor VA.  

it's amazing to me that these banks (maybe not Credit Unions?) are getting all of this liquidity from the Fed but are hoarding that cash now. Seriously!?

[CreditInspired]

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@Anonymous wrote:

After calling NCFU every other day for a week, I found out that we were denied a mortgage.  Medium score: 650; DTI: good.  The lady I spoke with said she did not know the reasons why we were denied but my assigned specialist would. 

Unfortunately, over the week the application was with NFCU, the assigned loan specialist never called, nor returned emails or phone calls.  Not a word.

We're currently waiting on a letter from them with the reasons why we were denied.  Any one else having these issues with NCFU?

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Hi and welcome to myFICO

You didnt say which type of loan, but I found out in March out when I called about conventional refinancing, that NFCU was no longer going to finance FHA loans. 

Since interest rates dropped drastically in March, mortgage specialists have been bombarded with applications; and I have the feeling that they are only responding quickly to members with high mortgage scores. 

Also, due to COVID19, a lot of mortgage specialist transitioned to working from home. Actually, IMHO, getting a response in a week is not terrible. 

Once you find out the reason for denial, that will let you know what areas you need to work on to get mortgage approval. 

GL2U

[Anonymous]

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@Anonymous wrote:

I was applying for one of their mortgage products. It was not FHA nor VA.  

it's amazing to me that these banks (maybe not Credit Unions?) are getting all of this liquidity from the Fed but are hoarding that cash now. Seriously!?

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I had the same question. This article did a pretty good job explaining: https://themortgagereports.com/64357/coronavirus-causes-mortgage-mayhem-with-new-requirements-and-no-rate-locks

Rates are at historic lows. This leads to huge demands for refis. Now there's a bunch of new MBS but investors are skittish and hesitant to buy. High supply and low demand. Lenders need to slow down the supply so they raise rates. We see the big swing between like 3% to 4-5% in a matter of days. The fed steps in and buys a bunch of MBS. This helps settle down interest rates.

Now the lenders have another problem. A bunch of people are deferring mortgage payments. But the lender still has to pay MBS investors whether people are paying their mortgages or not. It gets a bit over my head where they start talking about hedges and margin calls. But suffice to say it's another financial hit to lenders. One of their responses to weather the storm is lowering risk tolerance. And this is where we are seeing the increased score requirements and other qualifications tightening up.

[nykos5000]

I found another lender who was able to get me at 3.25% with FHA. They are only taking on FHA loans that can pass the AUS (automated underwriting system) with the a 620 min FICO and DTI of under 50%. If a manual underwriting review is required, a min FICO of 680 is required along with a DTI of under 43%. Compensating factors are also not being considered... it is still possible to get a home loan during these crazy times...one just has to find the right lender.