Consumer complaint received 2022-04-02
Company: U.S. BANCORP
State: IL
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
On Saturday, XX/XX/XXXX of XXXX, I called US Bank Home Mortgage and spoke with an employee whose employee ID is XXXX at ( XXXX ) XXXX. I had called about a notice of default letter received that was dated XX/XX/XXXX. This letter was dated after I had already requested to apply by phone for a VA XXXX Refund Modification ( a loan modification ) to reduce the monthly payment and create a junior lien for the past due CARES Act forebearance amount ( this would move the forebearance amount to the back of the loan ). A previous rep, whose employee ID number is XXXX, offered the VA Refund Modification on XX/XX/XXXX and stated the first payment would be due XX/XX/XXXX of XXXX. 

When I spoke with the other rep ( employee ID # XXXX ) on XX/XX/XXXX and was just bewildered about why their system generated 2 " notice of default '' letters, along with a letter acknowledging the request for the loan modification ( all letters were dated XX/XX/XXXX of XXXX ), I was told it was a system error, that the code did not process all the way through and to disregard the error. I then asked for a written letter acknowledging that the error was an error, but she stated that one would not likely be sent. This sounded like double talk in that her later statement totally contradicted her first statement to disregard the error. 

I then asked if I needed to mail in the additional Request for Mortgage Assistance application that I received ( I got XXXX letters all dated XX/XX/XXXX ). I was told no, that it was not needed. I was concerned about the loan modification being denied without a completed XXXX application on file and was told she checked with her XXXX and again that no, I did not need to send the completed application and if anything further was ever needed, they would request additional information ( the XXXX application letter deadline was shown as XX/XX/XXXX of XXXX ). 

I then read online about something called " dual tracking, '' where the servicer will move ahead towards foreclosure even if a completed loan modification application has been received and is under review. This is supposedly a prohibited practice. 

I strongly suspect that US Bank Home Mortgage is just running me around by sending me a notice of default by mail, along with a XXXX application, but then verbally stating no, just disregard and do not mail in a completed XXXX application ( I am Executor of the Estate of a deceased Veteran, who had a VA backed mortgage, and I am also the sole heir and successor in interest, who is currently attempting to exit CARES forebearance with a loan modification until I sell the property ). 

May I file this complaint with the CFPB that US Bank Home Mortgage sounds like they are running me around about the XXXX app in order to avoid being accused of " dual tracking, '' which I read online is a prohibited practice? 

I fully intend to submit a completed XXXX application and send it back with the Notarized loan modification documents, but I am just stunned that the " Relationship '' management team representative stated that she " checked '' with her " XXXX '' and was sure that no, I should not be sending the completed XXXX application back at this time. I assume that only what they put in writing is valid, as the loan modification documents to notarize may have a " no verbal agreements '' clause along with the clause that the XXXX assumes the cost of legal fees in the event the servicer forecloses. Maybe they want me to assume liability without a completed XXXX application on file and just start sending in the payments while they eventually deny the loan modification and move towards foreclosure. 

This servicer sounds like they are stringing people along as they step by step begin to move along a path towards eventual foreclosure. Otherwise, why did she advise me not to mail back a completed XXXX application that they sent out to me in the first place? This was a very ethically questionable consultation and I wanted the CFPB to know right away what was going on. 

I have also written to one of my Senators from the State of Illinois to suggest that both of my Illinois Senators start convening a committee and hearings to scrutinize how these mortgage servicers are handling post CARES forebearance exits so that Veterans ( or their Estates ) can successfully retain the home through a loan modification ( even if just long enough to sell the property in the Spring real estate market ). 

Regardless of the eventual outcome of the case, it is absolutely outrageous to be sent an application by mail, with a deadline on it, but then get told that there is no need at this time to turn in the completed Request for Mortgage Assistance application that would likely protect against foreclosure while the loan modification is under review. Just outrageous. Consumers beware.

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