Pentagon Federal Credit Union Penfed Horrible home refinance experience Alexandria Virginia

Recently I applied for a  5/1 arm refinance on my home.  They had the lowest rates and had a special promotion (no closing cost, and first mortgage payment paid).   I started my application on 3-24-13, and was ready to close on July 19th.  They lost paperwork many times, there title company took forever to get title work finished (over 4 months) and are incompetent regarding lending and underwriting procedures.  They kept putting additional monetary requirements as the loan process proceeded.  They asked me for escrow balance of  $5,484, when my taxes and homeowners insurance is  $4800.  They kept asking for more money, and all I received as a response from Ms K. Ettel was that there loan requirements kept changing?  I was ready to close on July the 19th, until Ms Ettel asked me for an additional $3800 (one day prior to closing)  to pay my homeowners policy,  even though they had money  on the escrow account.   She said that Penfed's policy stated  that you had to pay for the policy if you were 60 days from your policy renewal date.  Mind you they took almost five months to get the loan finalized.  Long story short, I would have ended up paying over 12k closing cost on a 100k refinance, minus there closing cost which were around 5k.   To her surprise I ended up canceling my application.  Even though I would have saved money, we as consumers can no longer allow these institutions to get away with misrepresenting good faith estimates  and putting new restrictions on loans at their leisure.   I lost time and money ($488) on third party cost for canceling the loan, but being a person that is based on principle, I rather not give my money or business to such a company. I did not mind paying .  They even tried to charge me an additional $100 for work that was not done.  I had two loans with Penfed before, but will never use them or recommend them again.  If you are considering using them I advise you not to do so.  It will save you the headache....

R.B