USAA question...

[pilotyip]

I had a recent claim after we hit a deer.

The claims agent completeley ignored us throughout the process and never returned a call.

Luckily the repairs were completed properly with one small hickup. Neither the local claims rep. or the people on the other end of the phone down in TX were helpful or the least bit invested in the issue.

Maybe my experience is anecdotal but it is in-line with two other stories in my circle.

Then you should change insurance companies, if what you say is correct it will impact USAA with the loss of customers. However as per above, I have had a number of claims in my 45 year history and have never experienced anything but superior service, I am not going to change.

 

[IBNAV8R]

Now that I'm seeing USAA ads on TV, I'm worried that the business model may be changing. I have a zero-tolerance policy on poor customer service. The day I get service like Hobit explains will be the day I'm on the phone to other carriers - and online to tell my peers.

 

[pilotyip]

Now that I'm seeing USAA ads on TV, I'm worried that the business model may be changing. I have a zero-tolerance policy on poor customer service. The day I get service like Hobit explains will be the day I'm on the phone to other carriers - and online to tell my peers.

Then if that happens, you should change insurance companies, It will impact USAA with the loss of customers. However as per above, I have had a number of claims in my 45-year history and have never experienced anything but superior service, I am not going to change. From comparing notes with other whom have had claims with other insurance companies, you may be changing insurance companies on a regular basis. BTW Sample of US service, I carry $1,000 deductible on my collision. I am rear-ended when I stop for an idiot making an illegal left-hand turn. I am smacked from the rear, over $7,000 damage to my car. USAA waved the deductible because it was not my fault. Got my car fixed for free.

 

[Andy]

USAA Mortgages

I've been a USAA member for more than 25 years. I love the company and will stay with them.

However, I would caution anyone about getting a 1st or 2 mortgage or HELOC through USAA. Their rates are great. But they will take every last penny from you if you default on the mortgage.
I don't have an issue with their hardnosed approach; it's why you get low mortgage rates. However, if your home is so far underwater that you have little choice but to walk away, USAA will hound you to your grave and beyond.

My wife and I are fortunate enough to have avoided the housing train wreck to date but plenty of good people have been caught up in it. My advice to anyone who chooses to get a mortgage is to NOT get it from USAA; go with a bank that will write off your mortgage if things go awry.

 

[ultrarunner]

....However, if your home is so far underwater that you have little choice but to walk away, USAA will hound you to your grave and beyond....

Why would you walk away? I mean, is it now accepted to simply "walk away" from any commodity that goes underwater, even though you can still pay for it?Should all those folks that purchased $30,000 dollar cars that are worth 15k in two years walk away? Is there a difference? Or is it simply the "perception" that a "house" is going to appreciate?

Sorry to drift...

On topic, does USAA actually do the underwriting, or do they simply shop it?

 

[Andy]

Why would you walk away? I mean, is it now accepted to simply "walk away" from any commodity that goes underwater, even though you can still pay for it?Should all those folks that purchased $30,000 dollar cars that are worth 15k in two years walk away? Is there a difference? Or is it simply the "perception" that a "house" is going to appreciate?

Sorry to drift...

On topic, does USAA actually do the underwriting, or do they simply shop it?

That's one school of thought on underwater mortgages. I don't necessarily disagree with your line of thought.
There's also the school of thought that you signed a contract that specifically spells out the actions that the bank can take if you default. I don't necessarily disagree with that line of thought either. Since Morgan Stanley did exactly that with 5 office buildings (strategic default), this isn't a groundbreaking strategy. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aLYZhnfoXOSk I love how the Morgan Stanley spokesman said it wasn't a default ... that's EXACTLY what it was - they defaulted on their loans.
I could get much deeper into this whole discussion with respect to mispricing risk during the boom years and how the entire world economy will be mired debt saturation for years to come but that stuff is pretty boring to most people.

As for USAA's loans, I don't know if they hold or sell them. I've always assumed that they hold them but I'd have to research it before making that statement.

 

[RoughAir]

USAA sells their mortgage loans (at least they did with me). I was with Bank of America with a lousy rate, refinanced with USAA (with a good rate), 1 month later my loan was sold to Bank of America. My payments still go to a USAA address and I guess they service my loan.

 

[Mamma]

That's interesting. USAA told me, when I wanted to refinance my mortgage, that they do not broker/sell their loans. They said that is why their rates are a little higher. I told them I could care less what they did with my loan but I wanted a competitive rate. They balked so I left. Now, I guess enough people left that they reconsidered and now sell the loans.

 

[OurMoney1]

USAA owns their mortgages however US Bank services them. Its a shared risk agreement. Its still USAA till you get into the finite details of the game of risk and then USAA chooses not to go it alone.

The Bank of America statement sounds wrong. I have never known USAA to do business with anyone outside of their umbrella and I have had 4 mortgages with them since 1974.

 

[T-1GUY]

USAA has never beat Penfed for any loan I have shopped. I gave them an opportunity to match the rate, but they refused.

The secret to success: Insurance=USAA, Financial loans=Penfed
:beer: