Consumer complaint received 2022-07-25
Company: U.S. BANCORP
State: IA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
to Whom it May Concern : Please see cover letter to US Bank in attachments, as well as all supporting documentation, regarding the failure of US Bank to pay my flood insurance premium from my escrow account. I had previously addressed this problem in XXXX and XXXX of XXXX, and was assured by my local mortgage lender, XXXX XXXX XXXX, that my insurance carrier ( XXXX ) had the wrong bank address causing a delay in providing my Flood policy invoice for payment. I was assured in an email from XXXX on XX/XX/XXXX, that the problem was corrected and all insurance would be paid by escrow as per my mortgage at US Bank. 

However, you will find additional documentation that US Bank again failed to pay my flood insurance policy for XXXX, causing a lapse of my flood policy on XX/XX/XXXX. US bank has taken the position outlined in the letter from their Customer Advocacy department date XX/XX/XXXX, that it is the fault of my insurance company for not providing the invoice in a timely manner. However, it should be noted that I had immediately notified both Meinders and private banker XXXX XXXX XXXX on XX/XX/XXXX, with a copy of the letter I had received from US Bank to once again provide proof of flood insurance. This email ALSO included a copy of the invoice which been sent for my file. This was still 8 days within the window of the 30 day grace period since the lapse of my policy on XX/XX/XXXX. It should be noted that I was assured this problem was corrected a year prior, and also that the same insurance company and agency provide my homeowners policy which US Bank did pay from escrow this year. 

Neither XXXX nor XXXX made any further communication with me regarding an issue with the escrow payment until I once again contacted them on XXXX XXXX, after receiving notification that US Bank had force placed a flood insurance policy on my property for nonpayment of premium. 

The delinquency of US Bank failing to pay my flood policy from escrow has caused a significant increase in premium to occur, as FEMA changed the elevation requirement for any NEW policy in XXXX. Had my same policy, which I have maintained with XXXX and the same insurance agency since XXXX been renewed, my property would have been rated at the XXXX feet elevation at which it was constructed, instead of the newly implemented XXXX feet elevation ; causing nearly a 5 times increase in my flood policy premium. 

Having no luck with either the local bank, or customer service, I was directed to VP of escrow XXXX XXXX XXXX. XXXX indicated it would be much less expensive for me to purchase private flood policy and recommended 3 companies. Two of the companies would not provide a quote to a non-agent, and the third gave a quote in excess of {$14000.00} annually. My policy premium for XXXX, that US Bank failed to pay was {$1300.00}. 

Obviously, the delinquency on the part of US Bank to pay my premium per my escrow agreement has caused a significant yearly financial burden to be placed on me. Ironically, banks require escrow to prevent this very circumstance from occurring. 

I very much look forward to your review of this complaint and further guidance. 

Best Regards, XXXX XXXX XXXX, OD

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation