Consumer complaint received 2018-05-15
Company: U.S. BANCORP
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
Short Summary : US Bank agent promised us home mortgage rates but backed out very late in the loan application process leaving us stranded and causing us financial loss because we had to find a new bank at the last minute. 

Details : We contacted US Bank loan agent ( XXXX XXXX ) on XX/XX/XXXX XXXX PT to get a quote on Home Loan Mortgage. Basically I was looking to get the best home loan mortgage rates from major banks. Over the phone and over text messages, XXXX informed me of following details / quote : With 15 % down payment ( 85 % LTV ) on property price of XXXX dollars - Interest Rate : 3.625 % Loan Product : 10/1 ARM Bank Fees : {$1700.00} Origination Fees : {$0.00} Additional {$1000.00} if we opened Platinum Checking account with US Bank . 

She also gave me quote / option for following : Interest Rate : 3.5 % Loan Product : 3.5 % Bank Fees : {$1700.00} Origination Fees : {$0.00} Additional {$1000.00} if we opened Platinum Checking account with US Bank. 

On XX/XX/XXXX afternoon, we locked the rates for 10/1 ARM product until XX/XX/XXXX. She also mentioned that this kind of rates and loan amount need manager approval and she had received a verbal approval from her management. 

I have attached a copy of all my text conversations and email confirmation from XXXX about the rates. 

After that I went ahead with US bank since they were the most competitive rates I was getting. We started full loan approval with US bank. 

We had to close the escrow on XX/XX/XXXX Friday so we moved really fast with the loan application. We also started a US Bank Platinum Checking Account to get {$1000.00} discount mentioned by XXXX. 

On XX/XX/XXXX, XXXX informs me that the original terms of the loan can not be respected and that she made a mistake in giving me the rates in the original quote. Now in order to close my home loan application, I would have to take two loans including one that would be conventional loan ( {>= $1,000,000} ) and other would be HELOC ( {$62000.00} ).  The second loan would be for 3.99 % and first would be same rate as above ( 3.625 % ). 

I declined her new offer since, I would end up paying more interest for the second loan and now I have to tap into HELOC for no apparent reason at all. 

After that she promised me that her manager ( XXXX XXXX ) would call me and discuss my case further but I did not receive any call from either her or from her manager until XX/XX/XXXX ( 1 day before close of escrow ). He acknowledged that XXXX had made a mistake but US Bank can not change their internal policy because of this mistake by their agent. He also promised he will get back to me with the best US Bank could do in terms of a single loan and match the original rates as closely as possible. However he never called back. 

Now I was left with no other option but to rush last minute to find another bank that would still give me a loan with whatever rates I could get. I never got any bank that matched the US Bank rates and therefore ended paying more interest because I was mislead by US Bank agent and her manager. 

We suffered financial loss because of mistake by US Bank agent ( XXXX ) and we need to get appropriately compensated for the same. 

Please help.

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 monetary relief