Consumer complaint received 2020-06-24
Company: U.S. BANCORP
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
As a first time home buyer, I was looking for a house in XXXX. I ended up with XXXX XXXX and they routed me to one of their preferred lenders US Bank. I went with them for pre-approval for signing the purchase agreement with the builder in the month of XXXX. I was given initial disclosure on the loan estimate on XX/XX/XXXX though their promised lender credit missing. For every question I asked, there were no clear explanation given on credits not being applied. The interest rate offered for my credit score was 3.875 % In the month of XXXX, they re-opened my loan file. I kept asking them for the new interest rate and the revised loan estimate to do rate shopping. The lender never gave the revised loan estimate and stopped me from rate shopping. They said my credit score would drop and I would not be eligible for the loan program. Inspite of that I went ahead with rate shopping with one of the other preferred lender of the builder XXXX on XX/XX/XXXX with my initial disclosure form US bank. Immediately US bank ordered the appraisal without giving me any room for rate  discussion. I found out XXXX was offering good MI for 3.25 % interest rate. US bank said they can give the same interest rate but never bothered about the MI and also said I will lose my appraisal amount. On XX/XX/XXXX I got the Loan estimate from XXXX and gave it to US bank to check if they can beat the rate and MI. On XX/XX/XXXX, US bank came up with loan estimate with 3.125 % interest rate still with high MI. So I decided to proceed with XXXX and inform the builder the same. XXXX repriced the rate and gave back lot of credits so less Cash to close with a difference of $ XXXXmonth on MI from US bank. In the mean time, US bank kept me in immense stress everyday by not replying emails and answering calls. They said they can not pull the credit report again. If they pull it, then would be able to match XXXX   MI.To keep me with US bank, they promised they will give 2.875 % interest rate so that they can match the XXXX MI as US bank MI couldn't be changed.

This is when US bank started with the plot. They changed the loan program from 97 % conventional to Home possible from XXXX XXXX.I never knew that it has a income limit. Later understood it was a plot to hook me up with a wrong program under lucrative interest rate. I dropped from XXXX and informed the builder I will be going with US bank. US bank again started playing the games on the loan estimate. Without my consent, they charged points to bring down the rates to 2.875 % and the rate was locked. US Bank management didn't agree to give me back the charged amount in the closing costs. Cash to close kept creeping up and they didn't heed to any of the closing costs concerns. 

As the bank was preparing all the documents for the closing date XXXX XXXX, On XX/XX/XXXX there was a sudden inquiry in my credit report. I called equifax to see who made the query. They said it was made by US bank. And it was done with no prior information and without my consent. I asked US bank why don't they fix the MI then, since they have latest report. I kept the file in pending status. I was informed the file will be ready on Monday which is the closing date.

I asked my wife to take off from her work. There was no reply from US bank on Monday other than underwriter is still looking into the file.No response to emails or calls as usual to keep us under immense stress. I asked my wife to take another day off hoping that it will be completed the next day. There was no response and finally Tuesday evening and said I am no longer eligible for the loan program because of the income limit. So they have to give the interest rate as on date with higher MI than before. I was in deep distress since they said rate lock is not valid under the old program. They said they will check with their management. 

They never responded back till Friday. I informed my apartment that I will move out in the weekend. They had a new tenant signed for my rest of the lease, so I didn't have any rent obligation for the rest of the lease. With the delay going on closing the loan, I was forced to change the move out date. The Apartment office called me and said, they lost the tenant with change in dates, so its my obligation to pay the rent for the rest of the months. 

I decided to check with XXXX if they went with right Loan program. They said they have gone with correct loan program and they are still with same interest rate and same MI.I was happy to move with them. Even then US bank instead of giving the promised rate, asked me to cancel XXXX application so that they can close the house with promising any any change in the interest rate/MI/Closing costs. 

Somebody should stop these kind of unethical practices of US bank and compensate me for the losses and all the stress I have gone through.

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