Consumer complaint received 2017-03-15
Company: U.S. BANCORP
State: NY
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
My mortgagee, USBank has mismanaged the escrow account. They have made unscheduled, unjustifiable and frivolous disbursements at their discretion resulting in an escrow shortage and fluctuating monthly payments. Furthermore the manner in which they apply payments to the loan, ( escrow, interest and principal-in that order ) has resulted in only partial payments to the P & I thereby forcing the loan into default. They began servicing the loan in XXXX, from XXXX to present only XXXX escrow analysis have been produced, XXXX/XXXX/XXXX, XXXX/XXXX/XXXX, XXXX/XXXX/XXXX, XXXX/XXXX/XXXX, XXXX/XXXX/XXXX, XXXX of which were within 4 months. As per XXXX XXXX, escrow analysis are done as needed. As of the last and most current and as acknowledged by XXXX XXXX, the bank is to escrow {$110.00} monthly ( {$1300.00} yearly ) for the payment of real-estate taxes. 
On XXXX/XXXX/XXXX there was a disbursement made to an insurance broker in the amount of {$1200.00} for " earned premium '', a fee the broker was requesting for a policy I had canceled and replaced. Not only was this not a premium but the bank was not escrowing for insurance. XXXX XXXX 's response to why this was paid was " it was in the interest of the loan ''. Being this was not the first time there has been a problem with the escrow and the payments ( in XXXX the bank caused an escrow shortage by paying the real-estate taxes on the wrong property, they then covered that shortage using the monthly payment resulting in a " missing payment '' ) I attempted to resolve the issues with XXXX XXXX only to be contacted by the bank 's attorney when I would not pay their demand amount without first resolving the issues. I acknowledge that during this period there were a couple of late payments that were my fault but as so noted by the banks attorney, the payments were applied to the escrow, interest and principal ( in that order ) of the loan, resulting in compounding late fees and short payments which eventually forced the loan into delinquency. XXXX XXXX, shortly after I contacted the OCC in the hopes they would help resolve this matter, the bank filed to foreclosure, to stop the foreclosure in XXXX XXXX I paid their demand amount which was now {$16000.00}. A few weeks later, on XXXX/XXXX/XXXX, the bank 's escrow department initiates contact with the same insurance broker they had paid the " earned premium '' in XXXX, requests and pays {$2700.00} for an insurance policy premium. not only are they not escrowing for insurance but they purchased a policy without my knowledge or consent. When asked how this premium was paid for? XXXX XXXX reply was " from an escrow overage ''. It seems that they control the loan at their discretion whether its performing an escrow analysis, making disbursements, purchasing insurance or how the payments are applied to the loan and unless the amount they state is paid, the loan is pushed into foreclosure. Not only have I not been able to get an actual escrow and payment history but I have been informed that I am responsible for the {$6600.00} bank attorney fees. XXXX XXXX always responds but he is evasive and does not answer the requests, for instance, he states he has provided the payment history numerous times, this not true, I 've only received a print out for the period XXXX/XXXX/XXXX to XXXX/XXXX/XXXX and it does not reflect any fees or escrow information, just recently after many requests for both a payment and escrow history, I received a spread sheet someone created, this is not an actual history, in our last correspondence he states that in 30 days he will provide copies of my canceled checks so that I can compare them to the spreadsheet, this is not what I 've been requesting as it will not explain how each payment was applied to the principal, interest, escrow, fees, etc of the loan. To better explain the situation, I have attached some correspondences and the spreadsheet, I will provide additional documentation upon request.

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