Consumer complaint received 2021-06-24
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 am a current customer of USBank for my home mortgage loan. I had my loan with USBank since XXXX and currently are experiencing the worst service I have ever received from a major bank. My loan has a deed on 2 names, my niece and myself. My niece is an XXXX Military in the XXXX, stationed in XXXX XXXX, VA, and I reside in California where the property is located. During the COVID-19 pandemic, I took advantage of the opportunity to skip few payments offered by the banks per the California Governor, the application was easy, just a quick short form, I was allowed to skip XX/XX/XXXX XXXX XX/XX/XXXX, then on XX/XX/XXXX, I called to get back on track and began making payments, I was told then they will add XX/XX/XXXX and resume my payments starting XX/XX/XXXX, and that is where the nightmare started. 

The issues started as follows ; I promptly received a loan modification document packet to get signed and notarized, came with an overnight pre-paid XXXX envelope to be sent back and fast processing, well that was not good. I noticed it had both names for a signature, my niece 's and mine, I only signed mine as she was not available and sent it back, then it got rejected. Since the first document packet was rejected because it had only my signature, I then told the loss mitigation department that my niece was stationed in XXXX XXXX, VA at the XXXX XXXX base and they told me that, they will send her a packet for her to sign and another identical copy for me to sign again. Both again got notarized and sent, only to be rejected yet again. The issue was that they wanted both signatures in one document, but we are on opposite sides of the country, and that is impossible. I requested them to re-draw documents with only one signature per packet and have my niece 's sign hers in XXXX XXXX, VA and I will sign the 2nd packet in California. Since late XX/XX/XXXX, I advised people at the Loss Mitigation department that she would be XXXX at sea on XX/XX/XXXX, for at least 8 months and that they needed to get this right and fast. Time keeps on going, my niece and I keep receiving identical copies as the ones sent prior and rejected, and I keep on calling over and over and being told different things time after time, finally on XXXX she had to leave on XXXX, she did have to leave me a Power of Attorney to sign on her behalf, I notified USBank immediately and sent it via e-mail to USBank to have it on file, they confirmed they receive it and look good. 

Ive been told it got the documents rejected because the Public Notary writes on the documents that only one signature is being notarized as only one person is present, and the loan processors immediately reject. Yet they can not get the right paperwork sent. 

Then on XX/XX/XXXX after exhausting calls for hours, I was told I would be receiving the correct paperwork, to wait and once received, sign, and sent since I had the power of attorney. But only for the entire process to come to a halt and stop at beginning of XXXX. Not only did it stop completely due to time expiration. But USBank had the nerve to contact all 3 credit bureaus for both my niece and me and report that we had 8 late payments, sending our credit scores low and affecting all of our finances. I had to contact all 3 credit bureaus, dispute the reports, submit paperwork, and prove that monthly mortgage payments had been continuously paid. I contacted USBank to get them to correct the reporting and re-open the modification, finally, at end of XXXX, one Senior Manager got the process re-open. USBank eventually corrected the credit report in XXXX, but not without causing me and my niece lots of stress and the risk of having credit card interest raised or closed credit lines. 

Once the process was re-open, I called almost every week, to check on the status of the paperwork. And time after time I was told it was in process and that I should wait a bit longer. During this whole ordeal, my monthly payment has increased not once but 3 times due to people 's incompetence at USBank. It went from {$2200.00} each month to {$2300.00}, then to {$2400.00} and this is because each time it has been XXXX with, the escrow for insurance and taxes falls short as they move the unapplied payments to the months behind. So, the loan modification keeps changing, it started with 8 payments to be added to the subordinate loan, now it is at 11 payments for the subordinate loan. Each time the payments only stop by request of USBank as they re-started the modification. ( XXXX was added again to the skipped list of payments per USBank ) After months of calls, and Notarizing and sending paperwork only to continue being rejected, there is a new twist on the problems. The new paperwork now includes a line for my wife to sign thats a new one, why? She is not on the Property Deed? But anyway I immediately called as spent almost 2 hours on the phone, going back and forth with the Loss Mitigation department and them checking with the Loan department. I asked for specific detailed instructions on how they wanted me to sign this and as a final set of papers. I was told they will re-draw the papers again to include verbiage that will specify that I have the power of attorney to sign for my niece, that line of verbiage was added to the line where my name show. 

I then received the packet on XX/XX/XXXX, again I had the document Notarized and signed as the instructions indicated nothing extra, the notary did write anything more than the Seal/stamp and signature required. No extra writing. Then on XX/XX/XXXX I received another packet. This time the verbiage was on my niece 's line why was this not done correctly? We again notarized and sent it the same day, received by USBank on XX/XX/XXXX. And on XX/XX/XXXX yet again I received a new packet identical to the one on XX/XX/XXXX. I again called Loss Mitigation, and after 45minutes they told me they have the last packet and they will see if it will work the new deadline is for XX/XX/XXXX, my wife is currently traveling ( I have proof ) and will be back on XX/XX/XXXX, if this paperwork gets rejected again and she is not here before XX/XX/XXXX the entire process will close again. 

Then today XX/XX/XXXX, at about XXXX XXXX, I receive a call from USBank telling me that the power of attorney was not recorded and they needed to be recorded. Wait what? How can I record a power of attorney without the person giving me that power? They had a copy of this document since XX/XX/XXXX and now almost 6 months later they realized they need something else So, not only have I wasted hours on the phone, stressed out, dealing with incompetent people, but I have paid the Notary each time {$15.00} per signature and I paid so far about $ XXXX, not counting my vehicle fuel, my time and time I had to leave my job to take care of this. This has affected me mentally with lots of stress, sleepless nights, and headaches, but I also economically as I lost the opportunity to refinance my loan to a lower APR and remove my mortgage insurance payment. As I was in the process to refinance the loan and remove the Mortgage insurance back in XX/XX/XXXX, only to be told by the lender that we had to wait for USBank to remove the forbearance and close the loan. 

I need assistance to get this to finally reach an end, I feel that no one in USBank cares anymore about customers, and I am disgusted with how USBank treats XXXX Military and their families. If this was my niece 's alone in this ordeal, I am sure she probably would have her credit ruined and lost her property thanks to USBank. I hope to end this now as it has been already 10 long months.

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