Consumer complaint received 2020-09-23
Company: U.S. BANCORP
State: WA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
In Mid XXXX, we applied for a HELOC. We have pending litigation from XX/XX/XXXX dog bite at XXXX XXXX  on our property, and our homeowner 's insurance is defending us. XXXX XXXX reported to US Bank and that we had a lien/judgment on our title. We do not. XXXX reported this : On the property report under judgment/Liens, it shows : A JUDGMENT filed by XXXX XXXX XXXX  XXXX XXXX C/O XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX  XXXX XXXX XXXX against XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX  XXXX XXXX XXXX in the amount of {$0.00} dated XX/XX/XXXX and filed on XX/XX/XXXX in ( instrument ) XXXX, of the official property records of XXXX XXXX, Washington, Case No. XXXX and in favor of XXXX XXXX XXXX  XXXX XXXX. 

The person we talked to at XXXX, referred to it as XXXX XXXX, or pending litigation, and that they had to report it as a judgment/lien. I argued it should be under a separate heading if they have to report it, but there is no lien on my property. After some back and forth, XXXX said they could remove it if US Bank agreed. According to my loan processor, US Bank said it was against their policy to lend on a clouded title, and there is no way they would approve it to be removed. And here we are. I was told NOT to contact the title company again as they did not determine the credit outcome by XXXX. Since then, she has not returned any emails. 
I scoured what I could find for XXXX XXXX, and everything I found stated it had to be filed/recorded on the property. My attorney handling the lawsuit and the claim representative said they had never seen this before! I looked up RCW  in WA State, as maybe there is something odd here in this state. No, it says it has to be filed/recorded on the property : XXXX XXXX XXXX? XXXX XXXX XXXX XXXX XXXX XXXX XXXX   XXXX XXXX call out specifically " Once recorded. '' Upon further looking at everything at the bottom of the report from XXXX, it says : The information is obtained from public records whose accuracy, completeness, and reliability we neither can nor do guaranty. 
So, you can't guaranty the accuracy of your report, yet you are causing me issues based on your inaccuracy? 

I used a benefit at work to have a property attorney go over the report that was returned by XXXX. They agreed as well there was nothing on my title. 

I was told to have the lien removed. How it doesn't exist! By who? XXXX, who is suing me for {$300000.00}? Her attorney? I suppose I could complete the affidavit of identity, but that is not true, and I won't. 

I am at a loss of how to get this remedied. US Bank won't lend with a judgment, XXXX is inaccurately reporting that I have one, yet US Bank tells me I can't talk to the title company anymore? 

I am at a loss as to how to get this rectified. It is a big circle right now, with inferior customer service. 

I did file an Insurance Commissioner complaint against XXXX on XX/XX/XXXX since they are inaccurately reporting that. How many other people have they harmed with this practice, and not understanding WA state law? How can I get them to remedy it if I can't talk to them? I felt I had no choice. 

Today, XX/XX/XXXX, I just received the notice of adverse action that you were declining my HELOC, based on " Value or type of collateral is not sufficient '' and to call a local number XXXX. I called, and it said to call XXXX XXXX  and hung up on me. 

It appears to me that XXXX is retaliating ; XXXX told me the application would sit until we could get the title issue resolved. Now I will have adverse action on my credit report? XXXX is not replying to emails. 

The reason for adverse action from USBank - -- -- While we hope that you continue to view U.S. Bank as a potential financial services partner, we regret that we are unable to approve your application at this time due to : Value or type of collateral is not sufficient

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