Consumer complaint received 2021-07-16
Company: U.S. BANCORP
State: NJ
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Please Note : Per a discussion with a representative at the CFPB call center, I have attached a PDF file with a detailed narrative and description of the problem. This PDF includes relevant details and supporting documentation. I wanted to be careful about including personal information in this description box. Please review the attached PDF for the full text of my complaint.

I wish to file a complaint against U.S. Bank National Association for deceptive/abusive loan practices.

I applied for a construction to permanent 30 year mortgage loan with US Bank in XXXX. 
I disclosed all my debt/property expenses and financial information. 

I asked about my existing debt, most notably a private mortgage on my current primary residence. The loan officer responded in writing that I could carry the new mortgage for which I was applying on top of what I was already carrying. 

I asked about down payments. I stated I wanted to avoid taxable events for this transaction, such as selling stocks or touching my retirement accounts. I was also told in writing that the bank would not need additional assets for qualification or closing beyond what I had shown in three non-retirement taxable accounts I provided on my application. 

I received a written set of disclosures from the bank which included a written loan estimate on XX/XX/XXXX. 

I signed the disclosures and fee agreement with the bank on XX/XX/XXXX. Later the same day, after I had signed the fee agreement, they began raising issues about debt-to-income ratios specifically related to the existing property expenses I had already disclosed and discussed with the bank prior to signing the application. 

I agreed to retire the private mortgage, which has since been completed. 

At no time did the bank issue a revised loan estimate. 

On XX/XX/XXXX I received a loan approval from the bank. It indicated a down payment that was {$100000.00} higher than what was on the loan estimate, an increase of 210 %. It referenced the prior loan estimate for more details, however the numbers were entirely different. Furthermore a condition of approval was that I needed to liquidate funds from other sources, specifically citing my workplace retirement account, and that the bank would not allow me to take funds out of one of the three taxable accounts mentioned above. 

I received notice from my employer of a pending salary increase. Between retiring the private mortgage and the pending salary increase it was a more than {$1000.00} positive difference per month over what was in my application. 

It has become evident that the banks written loan estimate and false and deceptive representations didnt comply with their own underwriting guidelines. 

The bank did not issue a revised loan estimate. To date the only loan estimate I have received from the bank is the one issued on XX/XX/XXXX. 

The bank 's actions have harmed me as a consumer. If the bank had not made false and deceptive representations I would have taken the opportunity to talk to other banks, research other products, and performed due diligence with respect to funding any down payment before proceeding with any application. Furthermore, if the bank had not made false and deceptive representations it would not have been able to collect fees from me, as I wouldnt have signed the disclosures which included the deceptive loan estimate. 

I hope the CFPB will fully investigate the banks actions and if found in violation of statute I hope the CFPB will pursue regulatory action and appropriate penalties against the bank and/or its officers

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 non-monetary relief