Consumer complaint received 2017-11-09
Company: U.S. BANCORP
State: OH
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
Re : Mortgage Assistance and Loss Mitigation Program Appeal and Complaint I find it ironic that my intent of this letter is an outreach based on a song from the movie musical XXXX Is anybody there and does anybody care. 

Over the past 3 years my family has attempted to secure a Modified Mortgage through US Bank Mortgage Assistance and their Loss Mitigation business unit. We were seeking the loan modification due to our small family business being hit hard by the bad economy.
My family and I have had a lesson in Mortgage Finance and a bank promotion of Mortgage Assistance, a process that has no intention of truly assisting you. Furthermore, the US Laws that regulates Mortgage and lending institutions fails to support and protect mortgage holders from a mortgage lending operation that only interest is taking your home, so they are paid by a government mortgage insurance that pays them when a loan is in default. In addition, the mortgage company forecloses on your home and sells it at auction and profits. Bottom-line, the mortgage company profits from not assisting distressed mortgage holders. 

Think about it : The courts can stop a President from protecting the US in the name of National Security so why would any consumer believe the legal system or Federal and State agencies will not stop predatory practices of mortgage lending who need some assistance due to temporary financial distress Recently the Senate voted kill a controversial rule that would have allowed Americans to file class-action suits against banks instead of being forced in many cases into private arbitration. What if the class-action suits have merit? 

The Banks and Mortgage companies do not have a vested interest in assisting mortgage holders because mortgages in default is a win/win for the bank Mortgage Holder Beware an offer of assistance is not based on a willingness to provide a solution. Also, a Mortgage Holder needs to understand that legal assistance in this matter has little to do with achieving success of a modification. 
Rather a false promise that a law firm or lawyer will charge you to file the same loan modification application that you filed several times before. 

Also, this letter outlining our familys small business and family financial journey through difficult times doesnt try to deny our personal financial responsibilities. In addition, the information provided demonstrates one of two things : Institutions that exist to assist Mortgage holders in tough difficult time are just window dressing with no intention of assisting. By not assisting they are paid by mortgage insurers when a mortgage loan defaults and benefits financially when they foreclose on a property and auction it off. That just double-dipping greed and if that is legal, why the pretense of pretending to assist in difficult times US Laws and Policies legislated to protect mortgage holders and consumers lack meaningful protections for mortgage holders and consumers. Worse yet, financial institutions, enforcement, state and federal officials are complicit in hood-winking American consumers Our experience in working with US Bank Mortgage Loan Assistance and Loss Mitigation : Since calls were being recorded by US Bank and I was not privileged to those recordings, I have no idea what transpired internally. Only later did I understand that something was wrong and I needed to begin documenting via email and not taking for granite a call conversation world be followed up on. If a call transpired, I sent a follow up email confirming the discussion. 

My documentation demonstrates the following : On Monday XX/XX/XXXX, we received a letter from Mortgage Assistance that we were eligible for a loan modification but no packet. 
XX/XX/XXXX received a US Bank Letter we were delinquent on our mortgage which we let them know and needed to apply for a loan modification, but no packet. 
XX/XX/XXXX US Bank Mortgage letter received that they had not receive our Mortgage payment, no packet for loan modification again. 
XX/XX/XXXX US Bank Mortgage letter saying our loan is delinquent, no loan modification packet. Several calls and in the month of XX/XX/XXXX no loan modification application XX/XX/XXXX, we received a letter from US Bank Mortgage Assistance stating we may qualify for a loan modification, no application packet again. 
place another call XX/XX/XXXX US Bank Mortgage letter saying our loan is still delinquent but no application packet again, more calls made XX/XX/XXXX US Bank Mortgage letter saying our loan is still delinquent. 
no application packet again, more calls made. 
Between XX/XX/XXXX and XX/XX/XXXX conversations with various US Bank Mortgage Assistance Managers and finally received a packet to complete to apply for a loan modification and completed and sent the packet on XX/XX/XXXX. Called several times to determine the status of the packet. 
XX/XX/XXXX called US Bank Mortgage Assistance on the status of the completed packet but was not confirmed it was uploaded Finally, on XX/XX/XXXX, we asked our US Bank XX/XX/XXXX XXXX XXXX to send via internal US Bank mail a request for a status on the loan modification request. She called and said, they had not received it. 
We had proof it was sent. 
XX/XX/XXXX called US Bank Mortgage Assistance and sent documents sent again Called US Bank Mortgage Assistance on XX/XX/XXXX to inquire as to status. Reply in process Called US Bank Mortgage Assistance on XX/XX/XXXX inquire as to status. 
Reply in process and it would be about 30 days XX/XX/XXXX, it was longer than 30 days we placed a call to US Bank Mortgage Assistance and they had lost our Mortgage Assistance Packet so we emailed a copy to Mortgage Assistance XX/XX/XXXX and XX/XX/XXXX calls were made again on status of the modification request. No status on a decision. 
XX/XX/XXXX packet lost again by Mortgage Assistance and resent completed packet to US Bank Mortgage Assistance XX/XX/XXXX US Bank Mortgage Assistance confirming the copy of documents were received and up loaded. She confirmed they were received an emailed me stating that the information has been up loaded. 

From XX/XX/XXXX until XX/XX/XXXX we made a good faith effort to complete the request for a Loan Modification and after 6 months of call and completing documents and increasing mortgage debt and penalties we get a foreclosure notice. 

During that time, we did the best to pay our mortgage in the face of a declining business and fluctuating income. 

The chain of events above was the first six months. During that six-month period, if US Bank Mortgage loan assistance would have quickly processed our loan modification request, we would have qualified for a number of Obama Administration and State of Ohio programs because although our income fluctuated as would have the ability to pay a modified monthly mortgage payment. 

We have never had an outright rejection and move to legal options of foreclose after the XX/XX/XXXX court stay. In addition, US Bank Mortgage agree to combine our first and second mortgage. 

In all fairness from XX/XX/XXXX until XX/XX/XXXX and now XX/XX/XXXX we have had non-approvals of our Loan Modification request. Due to the length of time from start to finish, our personal income fluctuated until XX/XX/XXXX. 

Each and every time we have not been approved we have asked for transparency to address our questions concerning the non-approval. Below is a question that have never been answered by US Bank Loan Assistance and Loss Mitigation. 

1. Housing to income ratio based on what? The modified loan or the current loan payment 2. Why cant US Bank Mortgage modify the interest percent from 6.25 we are currently paying to the 4 %  interest rate on the current loans they are offering. 
3. The Loss Mitigation non-approval letter state that the Bank has other account restructuring but when asked, we have no answer 4. US Bank Loss Mitigation and XXXX XXXX agreed to role the Mortgage and XXXX Mortgage together and but now abandoned it due to income projected at {$10000.00}, but at what modification structure was being proposed? 

In a response to a complaint filed with the Consumer Financial Protection Bureau Case # XXXX The first four paragraphs of a letter authored by XXXX XXXX Customer Advocacy Specialist documented within the US Bank systems that reflect internal letters, loss mitigation documents and non-approved dates will be documented as well. 

The problem with her response is that the internal documentation failed to identify the numinous calls, lost documentation and overall process failures that led to months and months delays in just receiving a packet and filing a Loan Modification Request. 

Once the completed Loan Modification Request was forwarded to US Bank Mortgage, it was months of following up to assure the documents were uploaded for review. The completed documents where send on XXXX XXXX and once sent with repeated calls, discussions, new mortgage assistance managers and calls to our US Bank Branch Manager from XX/XX/XXXX until XX/XX/XXXX we made a good faith effort to complete the requested Loan Modification forms. 

The entire 6 months of just receiving the appropriate documents, filing, assuring they were received, and uploaded our mortgage debt continued to increase and penalties as we continued to receive foreclosure notices. 

That was just the start of this arduous journey of working in good faith with our US Bank Mortgage Assistance and Loss Mitigation. 

During this effort to gain a Loan Modification we engaged two law firms. XXXX XXXX XXXX, XXXX and XXXX XXXX XXXX Bottom-line, both did what they were hired to do but what we failed to understand is from a legal perspective, the law firm could do nothing legally. The firms could just prepare and file the same documents to the bank we had prepared. Very high paid administrators. Hind sight and painful education! 

The Second firm XXXX filed twice the first time unsuccessfully but the Mortgage Loan Modification was reopened because our income was on the rise due to cash influx and XXXX XXXX loan agreement. 

On XX/XX/XXXX US Bank Loss Mitigation sent a message to XXXX XXXX that after the review of the Appeal they have granted us to resubmit a complete & updated Loan Modification package for review again due to the increase of income shows. Keep that thought! I have listed the docs needed so that I can resubmit the package to them. Please forward the requested items to be ASAP! 

At last, on the right course but short lived. Documented my personal gross income of {$10000.00}  per month {$2200.00} which increases to {$2300.00} in XXXX. Rent {$700.00} per month received from a contact boarder ( my XXXX-year-old father in law ) and my wifes income as a XXXX XXXX  and XXXX XXXX averaging {$400.00} per month. Also totaled per month {$13000.00} monthly. 

US Bank Mortgage underwriters would only approve a gross income of {$10000.00} and the rejected our application. 

So here we are again, filing another appeal with US Bank Loss Mitigation with well documents income and investment agreement of XXXX XXXX dollars. 

My family and I have learned a lot during this difficult financial period and fighting to save our home. 

In a recent meeting with a US Bank Mortgage Loan office, we shared the story of our Loss Mitigation journey. His response, when you move to Mortgage Assistance and Loss Mitigation you drop into the Black Hole. Now we find out that the process was never about helping us The Banks are in control and lawyers have no ability to use the law in the case of Loan Modification or Loss Mitigation unless you file an expensive law suit. Now that is not possible with congress changing the law that you can not file class action lawsuits against financial institutions Federal and State agencies can bark but have no bite when consumers are abused or mistreated by mortgage lenders, banks and financial institutions Increased income and agreements that provide a XXXX investment hold no weight or creditably when in a mortgage crisis Bottom-Line, do not plan on anyone but yourself. 

So much for believing that integrity, honesty and just plain someone to help when you need assistance. Mortgage Assistance is billed as an organization to help a mortgage holder, in my familys case it has one fiasco, delay and a dozen or more relationship Managers.
All this from an organization that claims they are about helping you work through bad financial times. Disappointing, but seems par for the course within the current US Financial System. 

Sincerely, XXXX XXXX XXXX Business Owner and family man who never gives up the fight CC The Honorable XXXX XXXX XXXX Attorney General Recent Appeal Sent to US Bank Mortgage Assistance and Loss Mitigation XX/XX/XXXX XXXX XXXX US Bank Attention : Escalation Center XXXX XXXX XXXX XXXX, XXXX XXXX Mortgage Loan No : XXXX XXXX : Since you are our new Relationship Manager directed at servicing our Home Mortgage and reviewed our file, you understand we have had an arduous journey in attempting to secure a loan modification. On many occasions I have shared with the numerous Relationship Managers that history is not a predictor of the future. 

History is not a predictor of the future. Although our Small Business and Family have suffered since XX/XX/XXXX with a devastating downturn that forced us to close a small business, and wrecked our personal finances, that is the past, not the future. 
So, lets move point by point as to why the US Bank Mortgage Underwriting decision and determination we are not worthy of a loan modification, is incorrect! 

Stated under Traditional Modification, denied due to your income is insufficient to support payment. Based on what loan modification structure and interest rate? 

Stated under Payment Plan The modified payment will result in your housing to income ratio exceeding the targeted housing to income ratio ( combined 1st and 2nd mortgage ) per program guidelines. What program guidelines are being applied in this case? 

Point 1. If US Bank combined current principle and interest, second mortgage which would be {$680000.00} on a 3 % interest loan the monthly payment not including taxes and insurance would be at {$2800.00} on a 30-year fixed refinance loan. This is affordable with our current income of {$13000.00} and annual earnings of {$160000.00} before taxes. If US Bank applied a 4 % lending rate to the recalculated the loan the payment would be {$3200.00} per month, still affordable.
Point 2. If you calculate a combined first and second mortgage into a 3 % interest {$2800.00} or 4 % interest rate, {$3200.00} monthly payment is extremely achievable with our current monthly income. Based on both monthly payments and calculating the income to housing ratio based on the standard definition of adding up all of your monthly debt obligations -- often called recurring debt -- including your mortgage ( principal, interest, taxes and insurance ) and home equity loan payments, car loans, student loans, your minimum monthly payments on any credit card debt, and any other loans that you might have or 24 % not 38 % that has been calculated by US Bank Mortgage Underwriters. We have asked the question on numerous occasions what formula for income to housing ratio is being applied by US Bank Mortgage Underwriters? Again, no transparency!
Source : Bank XXXX definition and debt to ratio calculator and the truth about Mortgages XXXX XXXX XXXX XXXX 3. US Bank Underwriters only provided the XXXX Family Credit for monthly income of {$10000.00}. When it is well documented that our current monthly income is {$13000.00} and breaks down as follows : personal gross income of {$10000.00} per month {$2200.00} which increases to {$2300.00} in XXXX. Rent {$700.00} per month received from a contact boarder ( my XXXX-year-old father in law ) and my wifes income as a XXXX XXXXr and XXXX XXXX averaging {$400.00} per month. Total monthly income {$13000.00}. 

Supporting Documentation. My income is verified on two basic documents 1. Employment Letter Attached 2. Loan and XXXX-dollar investment document, both attached to this letter. 
Business and Personal income will rise in XXXX due to the investment and contracts currently being negotiated. 

Also, US Bank Credit Score provided as a XXXX score. I do not know where the bank pulled the score from but FICO, Equifax and Experian all have it higher. 

The effort to gain a loan modification from US Bank Mortgage, Mortgage Assistance and Loss Mitigation has gone on far too long. The XXXX XXXX has the ability to substantially recover from years of negative financial down turn and financially thrive. 

We now have the ability to pay off debt overtime and stay current with our financial obligations. As in the beginning, we came to Mortgage Assistance for Help to Modify our Mortgage Loan and allow us to save our home. 

I am a XXXX-year banking customer and a 27-year business customer and would like to continue the banking relationship as we recover personally as well as bank the XXXX XXXX business investment and future growth earnings with US Bank. 

It just comes down to this, is US Bank Mortgage Loan, Mortgage Assistance and Loss Mitigation going to do the right thing because it is right to do and the XXXX Family has provided proof we are in recovery. Or is it that US Bank and its mortgage operation just doesnt want to help? 

Sincerely, XXXX XXXX US Bank Customer and Mortgage Holder

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