Consumer complaint received 2019-11-21
Company: U.S. BANCORP
State: ID
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
This complaint is against U.S. Bank Home Mortgage, whose sales offices are located at XXXX XXXX XXXX XXXX, XXXX, ID XXXX. 

On or about XX/XX/XXXX, my wife, XXXX, and I inquired about the possibility of obtaining a mortgage through our local US Bank branch office located at XXXX XXXX XXXX, XXXX, ID XXXX. We were interested in making an offer on a newly built home and were directed to a US Bank Home Mortgage loan officer, XXXX XXXX ( NMLS # XXXX ). 

Among other disclosures made to XXXX at that time was the fact that we were new to Idaho, self-employed, and had only 2 years worth of tax returns ( XXXX & XXXX ), showing limited self-employment income. He inquired about our current income and we told him that we were doing quite well so far this tax year ( XXXX ). He advised us that he could use the current years income to qualify us for a mortgage with only 5 % down on the home we were interested in. Pleasantly surprised, I then informed him more than once that we were only a small, Schedule C business, did not employ accountants, and kept track of income and expenses ourselves. He assured that was no problem and that an audited statement was not required for mortgage approval with 5 % down. He later supplied me with a US Bank P & L template and instructions that I could just fill in the blanks and return it to him with our application fee of {$390.00}. 

On or about XX/XX/XXXX ( and relying on XXXX representations ), we proceeded to enter into a contract on the new home. That same day and as per Bauschers instructions, we completed and submitted the P & L statement using the US Bank template that he supplied us with. Later, on XX/XX/XXXX, XXXX automatically charged our US Bank credit card for the {$390.00} application fee. 

After not hearing from XXXX for a few days, we became concerned about our loan and, on XX/XX/XXXX, we contacted XXXX who assured us that there were no problems, he needed nothing else, and that a commitment was imminent. He then stopped communicating with us and on XX/XX/XXXX, phoned and informed me that we would be declined unless we agreed to put up 20 %, because our P & L statement  was not audited ( i.e. signed by a CPA ). He then stopped communicating with us at all. To date, we still have received nothing in writing from US Bank, not an approval or denial. 

Realizing that we had been lied to as part of a slamming scam by US Bank and concerned about the need to mitigate our losses immediately with less than 2 weeks to go until closing, we scrambled to procure alternative financing and contacted XXXX sales manager, XXXX XXXX ( NMLS # XXXX ). Although she confirmed for us in writing that the guidelines do not require an audited P & L statement, she informed us that there was nothing she could do and refused to refund our application fee of {$390.00}. Our losses to date can not yet be calculated with mathematical certainty, since they are still on-going. 

Acting through their agents, XXXX XXXX ( NMLS # XXXX ) and XXXX XXXX ( NMLS # XXXX ), US Bank is guilty of making false statements about their ability to offer a loan, fraudulently inducing the procurement of applications and fees from consumers, and otherwise engaging in bait-and-switch scams designed to pressure borrowers into less favorable mortgage products in an effort to boost their profits. We demand that this matter be fully investigated and that our application fee be refunded without any further delays.

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