Consumer complaint received 2019-10-03
Company: U.S. BANCORP
State: CA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I was about to make an offer on a HUD-approved manufactured home in a land-owned community and applied for this loan with USBank because they are listed as a participating lender for a grant program, which I needed. I was approved and was in underwriting and in escrow on the first home. However, the home did not pass inspection, so I immediately canceled escrow and notified USBank about this and informed them that I was interested in another manufactured home just a few lots up in the same community. USBank drew up another application for the second home and everything was in progress, I received more " congratulations, your loan has been approved '' type phone calls, as with the first loan. I was in escrow on the second home and in the middle of underwriting, once again. I received inquiries from USBank via their secure portal, which is extremely difficult to access and use, but did my best to immediately provide what was required. The loan officer 's assistant emailed me a list of items to produce and I was ready to upload everything to the secure site, but there was no way of uploading my documents upon logging in as the site indicated the loan officer will be in contact with me. Meanwhile, the day after we had completed inspection on the property, I received a shocking phone call from the loan officer that USBank has suddenly decided to no longer finance manufactured homes! There was nothing he nor I could do, but turn to another lender. I was packing to leave town for my aunt 's memorial, but yet had to scramble until midnight to find another lender to replicate the USBank loan as escrow is due to close in less than three weeks! I have now hurt my credit score with more hard inquiries to apply with other lenders. Moreover, I will likely lose this home and fall out of escrow if I can not find a lender to offer me a loan similar to USBank 's within three weeks which I can afford and which includes the grant I really need. It is so unacceptable for a reputable bank to do this at the eleventh hour! They should have at least honored my application to closing and not cut me off in the midst of underwriting! Moreover, I was told if I opened a USBank account, I'd get 1 % back at closing, so I went through the hassle of closing out my XXXX XXXX account to switch to USBank. I spent an entire weekend updating my bills, making arrangements for payroll direct deposit to USBank, go through the hassle of rushing to the bank after work to cash my payroll check prior to the new direct deposit coming into play in two weeks, etc. The numerous effort and time I've wasted and all the trouble I'm going through is beyond words. For USBank to suddenly drop me the way they did without any notice or written notification other than an apologetic phone call from they loan officer is just unacceptable. A major bank such as USBank to do this to an individual is outright cruel and unacceptable!

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