Consumer complaint received 2023-04-17
Company: U.S. BANCORP
State: MN
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
Dear CFPB : We were defrauded by US Bank and are seeking damages. 

After promising to provide a modification/refinance solution during the Covid forbearance period for our 1st and 2nd mortgages secured by our personal residence, U.S. Bank is refusing to modify/refinance our 2nd mortgage post forbearance. 

in XXXX of XXXX, we placed our 1st and 2nd mortgages, both with U.S. Bank, on forbearance due to Covid. Before we submitted the forbearance application, we asked what would happen after they were removed from forbearance, and we were informed that the loans would be modified and might even include a reduction of principal ( if our income was lower at the time of forbearance resolution ). We were subsequently assured of this multiple times verbally and in writing throughout the forbearance period. 

In XXXX of XXXX, we proactively applied, at our local U.S. Bank branch, for a refinance that would combine the 1st and 2nd mortgages into a single mortgage at the current interest rate, which was 2.75 %. 

In XXXX of XXXX, we were denied the refinance that would combine the XXXX mortgages, so we filed a case with CFPB. 

In a letter from U.S. Bank dated XX/XX/XXXX, and in response to the CFPB case, we were informed that the XXXX XXXX would not allow the mortgages to be refinanced while they are in forbearance ( we doubt this was accurate ) and that U.S. Bank would work to resolve our situation after the mortgages were no longer in forbearance. We believed this to mean that they would modify/refinance after the forbearance period ended as was confirmed verbally over the phone. 

On XX/XX/XXXX, we received a letter confirming in writing that an eventual modification/refinance post forbearance would occur. 

In Late XXXX, we requested our mortgages be removed from forbearance. We submitted " loss mitigation '' applications at that time and we complied with all requests for information for both mortgages. 

On XX/XX/XXXX of XXXX, our 1st mortgage was approved for a modification which resulted in a lower int rate ( 2.875 % ) and much lower payment ( XXXX amortization ). We were satisfied with this resolution and looked forward to hearing about our 2nd mortgage. 

On XX/XX/XXXX, after 14 months of delays that were US Bank 's fault, we finally received notification that our 2nd would NOT be modified or refinanced AT ALL and that our only option was a " short sale ''. We were shocked because we expected a loan modification/refinance similar to our 1st. 

Very early on we acted in good faith to proactively resolve the forbearance with a refinance that would have resulted in a combined mortgage at 2.75 % int. and a XXXX amortization, but were denied. 

During the process, we complied in a timely manner with all application forms and information requests. Our financial situation has improved and is now better than it was when our first mortgage was modified, so there is no reason they should treat the 2nd mortgage any differently than the 1st mortgage. 

Due to US Bank 's lies and deception, we have been defrauded thousands of dollars. The amount of the fraud will increase every month going forward ( upwards of {$450.00} depending on interest rates ) until this is resolved. 

We request your help in resolving this and recovering damages. 

Thank you for your assistance in this matter.

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