Consumer complaint received 2020-09-21
Company: U.S. BANCORP
State: AL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I am the Seller 's Realtor for XXXX XXXX XXXX XXXX, XXXX, AL XXXX. XXXX XXXX, with US Bank was the mortgage loan originator ( NMLS # XXXX ) for the Buyer, who was not my client. We were scheduled to close on the home for the {$250000.00} agreed upon contracted price on XX/XX/XXXX. This home was in very high demand and sold the first day for XXXX above asking with multiple offers. The original list price was XXXX. 

On numerous occasions during the process, I inquired regarding the status of the appraisal and received no response. I received an email from XXXX XXXX on XX/XX/XXXX at XXXX that the home appraised for {$240000.00}. It was a short blunt email with no explanation. I was informed by him that my Seller needed to agree to the reduced price of XXXX per the appraisal by XXXX that day so disclosures could be sent in time for the XX/XX/XXXX closing. This did not give my Seller time to consider the current situation and/or object to the appraisal. After several emails back and forth disputing the appraisal, the lender told me that we had NO grounds for a dispute and would not offer us a way to dispute the appraisal. There were several initial glaring errors on the appraisal, but the main one is that the appraiser only gave XXXX in value to the 1st floor. He called the 1st floor a basement and wrote the report up as if the 1st floor was a below grade basement. I even went to the home that evening and took a video of the home showing that the 1st floor was not below grade and was not a basement. Once again, even after receiving the video, he would not allow me to submit a dispute. 

That evening, I also searched the MLS and found another major error on the appraisal. There was a significant comp that was on the appraisal for XXXX, which was in error. The home actually sold for XXXX. I sent the MLS information, and the lender still would not consider granting us a revised appraisal. Also, during the correspondence, he would not answer the phone and was rude to me and the Seller. During this time we spent asking for a revised appraisal, we lost precious time, which we did not have due to receiving the appraisal at the last hour. 

The Seller then conceded to close the following week on XX/XX/XXXX with the lender telling us that we would have no problem closing by the new date due to the fact that all paperwork was ready to go. Then, after calling and emailing for updates all week with no responses, we learned on XX/XX/XXXX that the lender missed the fact that the Buyer had a short sale on her record, and financing was denied. 

There was very little communication on his end, and he 100 percent completely refused to reconsider the appraisal due to the major error that was evident. I am attaching those emails to this complaint, which details his lack of motivation to reconsider the faulty appraisal. It is my feeling that he was colluding with the Buyer and the Buyer 's agent to get them the home at a reduced price, which is why he  refused my request to dispute the appraisal. I also feel that this is the reason that I was sent the appraisal at XXXX on the last day before disclosures had to be sent to underwriting. This was in my opinion purposeful to prevent my Seller from being able to dispute or consider other options in a timely manner. 

In the end, this deal completely fell through due to his lack of diligence to make sure that the Buyer had the proper credit to purchase the home in the first place. I am completely appalled that US Bank refused to evaluate his poor performance. In addition, his professionalism was sub-par at best and bordered on rude and arrogant in most of his correspondence. He took the position that under no circumstances could we dispute the initial appraisal and would not listen or submit our complaints in regard to the first appraisal. 

I have been in real estate for 15 years and thankfully, I have not had to dispute many appraisals on behalf on my clients. However, in other instances, when I made the request to dispute, my request was heard and reviewed and considered. The outcome changed in some cases and in some cases it didn't change but in all of those cases, I was respected, and my client was respected.

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