Consumer complaint received 2023-03-06
Company: U.S. BANCORP
State: IL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
On XX/XX/XXXX I closed on my mortgage with US Bank. It was clearly understood that my wife was to be added to the deed but not the mortgage itself. During the closing, my wife noticed that she was not listed on the deed. Our mortgage representative was present and asked XXXX XXXX to verify this was on the work order, which it was. The person closing on the mortgage refused to stop the closing because the sellers of the property had " already been waiting too long ''. My wife was not comfortable with this and requested that the deed be prepared correctly especially considering this was a fee we had paid for. They refused. Our mortgage representative continued to tell us that once we received the Warranty Deed in the mail, take it to our county Assessors office and Quit Claim Deed to make the changes. My wife has been a XXXX XXXXXXXX for XXXX years so she knew right away this was against US Bank 's policy and doing so cause them to accelerate our mortgage. The mortgage rep insisted that we continue with the closing and she assured us we would not have any issues but continued to wink her eye and say quote " but you didn't hear it from me ''. For the next couple of weeks my wife continued to contact our representative who refused to help in any way and told us as long as we make the payments after the Quit Claim Deed, we won't have to worry about anything. My wife told her many times that she has read the mortgage in it's entirety and it clearly states that if any changes were made US Bank holds the rights to accelerate. My wife contacted US Bank on at least 6 occasions asking for help without success. We finally visited XXXX different branches and was not able to get help from anyone. As of XX/XX/XXXX, US Bank still does not hold the title to my home and they have no idea who to contact or how to get the title. On XXXX XXXX XXXX  my wife scheduled our first payment to be processed on XX/XX/XXXX rather than waiting until XX/XX/XXXX when the first payment was contractually scheduled, in order to avoid accruing unnecessary interest. US Bank lost the payment, refused to help locate the payment until XXXX weeks later. My wife was able to learn that US Bank opened a second mortgage account under my name, applied the payment to that account, and subsequently closed that account. Each time my wife would contact the mortgage department, she was told they would reverse the payment and post it effective XX/XX/XXXX as instructed. This was never completed. It was reversed and posted again in mid XXXX, after another XXXX hour phone call, it was reversed and then posted around XX/XX/XXXX. We visited a branch XXXX minutes away and were told by XXXX XXXX that she didn't want to get involved because she was transferring to a different department in a week and didn't want to worry about following up and told us to come back the next day to speak with the branch XXXX. I took yet another day off of work and we met with the branch XXXX who was absolutely no help at all. He refused to make a single phone call or try to contact anyone with the mortgage department and told us his hands were tied. I took yet another day off of work to visit a different branch the next day. We spoke with XXXX XXXX who assured us he would take care of everything with the exception of helping us with getting my wife added to the deed and told us to do the same thing our mortgage representative did and have a Quit Claim Deed filed and we would have to pay for it. When we told him we were not going to risk having our mortgage accelerated. To which he replied the same as the others, " as long as you make your payments, you'll be ok ''. My wife was extremely angry and we thought it best to leave. We were in the process of cashing a few checks and making another mortgage payment and XXXX approached us and said the mortgage department was going to reverse the payment and post it correctly but the best they could do was XX/XX/XXXX rather than the XXXX. We agreed to that. To date, this has not been corrected and US Bank refuses to do so. They have reported to the IRS that payment was made in XXXX causing us to receive tax notices from the IRS. The payment still stands posted effective XX/XX/XXXX. I have provided US Bank with a financial power of attorney given to my wife and signed an authorization letter giving her the right to speak on my behalf in any and all capacity regarding this mortgage. We received a confirmation letter yet US Bank still refuses to speak with her, stating the authorization is not on file. I applied for a line of credit XXXX weeks ago and was denied due to a low credit score. We were puzzled and couldn't figure out why as my score was XXXX when I signed for the mortgage. My wife contacted US Bank on XX/XX/XXXX to make our monthly payment. The representative continued to refuse the payment and refuse to speak to my wife so she added me to the call to give my authorization. The representative told us that she was not able to process the payment as the mortgage has been charged off as a bad debt. After an hour of going on and on with her she told us that the mortgage account that was opened without my knowledge was marked charged off and was reported to my credit file which absolutely explains why my credit score is now XXXX. We asked when that account was charged off and we were told it was charged off on XX/XX/XXXX when our new mortgage was opened. We explained that we closed on our mortgage on XX/XX/XXXX but her records show it was not opened until XX/XX/XXXX. After quite some time, she was able to override her system and accept the payment, posting it to the correct mortgage. When we asked about the title we were told that US Bank still does not hold the title to our home and they were having trouble getting it from the county in which we reside. I asked what would happen if we pay the house off that day, how would we get the title to which she replied " I'm not sure, you'll have to take that up with your county ''. US Bank has not only destroyed my credit, but I am stuck in a mortgage for a house I will never own because no one seems to know where the title is, we were put into an FHA loan with assistance from XXXX and in our contract it states the XXXX grant is forgiven after XXXX years however we have learned it's actually 10 years and we are not permitted to sell or refinance without severe penalties and also we would be responsible for the XXXX XXXX. We also learned our mortgage was closed without having any insurance on our home. State Farm, our insurance company for many years, contacted my wife asking questions about the property. It was then we learned that an inspection was not completed by State Farm to properly have the policy underwritten meaning we resided in our home for over a month without insurance. Our escrow is approximately {$1700.00} annually for insurance however now that the policy is effective it's {$120.00} less yet it is calculated in our monthly payment at the {$1700.00}. US Bank told us we would not have our payment lowered accordingly nor would we receive the {$120.00} refund annually. Upon investigation, we have learned that US Bank has recently been fined in the millions for opening accounts in customer ( XXXX ) names without their knowledge as well as lines of credit, deposit accounts, credit cards and loan accounts and I am now a victim of their fraudulent activities. I am not in the best of health so my wife is in constant worry that if something were to happen to me, she has zero rights to our home as they required her to relinquish her homestead rights but it was agreed upon she be added to the deed but since that did not happen and US Bank refuses to rectify this, she would immediately be forced to vacate.

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