Consumer complaint received 2021-05-06
Company: U.S. BANCORP
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I submitted an initial complaint ( XXXX ) pertaining to US Bank not providing me refinancing on an existing mortgage I have with them due to a lack of documentation for a ground rent agreement they stated wasn't sufficient. 

They stated they documentation provided my my title company as well as documentation filed in superior court within the state of Maryland wasn't adequate. 

I ask them why would they deny refinance based on land lease agreement document being they have abided by it for over 9 years when they purchase my loan from XXXX XXXX XXXX. I asked they to provide evidence that the ground owner received and deposited the ground rent payment bi-annually from my escrow account. They were unable to confirm an stated an investigation was required to determine if the payments were ever deposited during the 9 year period and if the payments were deposited why didn't they request the ground rent agreement from the ground owner to complete the refinancing. They refused and stated they didn't know who the ground owner was and I needed to provided they with proof. 

After the investigation was completed and US Bank had already decided not to refinance my property they provided a response to CFPB stating " A review of our system confirms ground rent has been collected within the monthly mortgage payment since the loan boarded our system, with a first payment date ofXX/XX/.The next payment is scheduled to be disbursed from escrow in XX/XX/XXXX '' I purchased the property in XXXX which would mean US Bank has been deducting money from my money mortgage payment and placing it in escrow for ground rent for 9 years but will make the first ground rent payment on XX/XX/XXXX. This is documented in their response. 

What this proves is either US Bank never paid the ground rent in the 9 years I have had a mortgage with them and have been deducting funds for a ground rent they never paid in 9 years or they have been paying the ground rent and indeed know the identify of the ground owner and intentionally lied in attempt do cover up their unfair business practices. 

US Bank hasn't provided me with any documentation supporting or refuting the facts related to the identity, the payment history, the deposit history of the ground rent for the last year. 

I am requesting all documentation related to ground rent disbursements, deposit confirmation, escrow analysis proving payments were indeed paid out, and the identify of the ground owner. 

This will assist in determining is US Bank in good faith made an attempt to contact, obtain ground lease from owner which they had a relationship with through bi-annual payments for 9 years and if they weren't paying the ground rent why didn't they disclose this information so I could have worked with a lawyer or title company to attempt to legally obtain the grounds on which my home was built on.

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