Consumer complaint received 2017-11-01
Company: U.S. BANCORP
State: MD
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
As a result of hardship caused by the new XXXX status of XXXX XXXX which caused loss of income to our household, my husband XXXX XXXX who has remained gainfully employed during this entire process and I applied for mortgage assistance through USBank 's loss mitigation department. We received a loss mitigation package dated XX/XX/XXXX, stating that we had been approved for the Government Home Affordable Modification Program ( HAMP ) with terms stating that acceptance needed to be acknowledged by signatures and payment received by USBank no later than XX/XX/XXXX. On XX/XX/XXXX, check # XXXX written on XXXX XXXX for {$1900.00} with the signed Government HAMP acceptance and terms were mailed to XXXX XXXX XXXX XXXX, XXXX. XXXX XXXX, XXXX, MN XXXX, and a signed copy of the Government HAMP acceptance and terms was faxed to XXXX on the same day. 

Terms and conditions outlined for the trial period stated that a permanent modification agreement would be provided for our review and acceptance upon its completion. The trial period schedule was from XX/XX/XXXX through XX/XX/XXXX at {$1900.00} per month. Terms and conditions for the trial period plan stated that the pre-qualification was put in place to demonstrate our ability to afford the monthly payments. The trial period plan was satisfied onXX/XX/XXXX when the payment of {$1900.00} was made to USBank via XXXX XXXX Speed Pay drafting service, confirmation XXXX. According to the terms outlined, we were instructed to continue remitting payment each month following the final trial period payment until we received notification that the modification had been completed and finalized. 

We received a letter dated XX/XX/XXXX stating that we had previously been approved for unemployment forbearance that was no longer active on our account. The letter stated that the program had been terminated either because the duration of the forbearance had passed or because USBank had been informed that the employment status of the unemployed person had changed. Firstly, the terms and conditions outlined in our agreement was not an unemployment forbearance but a Government HAMP acceptance, and the terms and conditions for the trial period stated that if the conditions warranting the program remained at its completion then a permanent modification agreement would be provided. Secondly, the conditions being the permanent XXXX and unemployed status of XXXX XXXX does still exist and thus warrant a permanent modification agreement be provided to us for review and acceptance. All original documentation received and executed by us support approval for the Government HAMP and the loss mitigation review determination summary identified that we were not approved for unemployment forbearance because the borrower XXXX XXXX was receiving continuous income. Formal forbearance was not approved due to insufficient income to support a repayment plan. Standard modification was not approved due to insufficient income to support modified payment amount. The Government HAMP was approved and no other determinations were reviewed. This is the process as outlined in this determination document, and as stated we have never been presented with any legally executed documentation exposing us to a employment forbearance program. We were told on XX/XX/XXXX by a USBank representative that a trial payment period for a HAMP modification is normally 3 months and that the 12 month period was unconventional. Us satisfying a 12 month trial period is going above and beyond 4 times what is required and thus demonstrates our ability to afford the monthly payment as addressed as the reason for the trial plan in the terms and conditions from the package dated XX/XX/XXXX. 

The letter received from USBank dated XX/XX/XXXX referencing unemployment forbearance completion is the first documentation we have received referencing any mention of our enrollment in such a program and is supported by no documentation to suggest that an unemployment forbearance had ever been entered. We expect for USBank to honor the agreement as outlined in the package dated XX/XX/XXXX which was accepted with our remittance of check # XXXX sent on XX/XX/XXXX.

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