Consumer complaint received 2022-01-17
Company: U.S. BANCORP
State: MD
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage

Complaint:
This is my second complaint against US Bank regarding the HELOC loan I took out in XXXX. After further investigating the issue I believe US Bank has participated in predatory lending that must be thoroughly investigated. Types of predatory behavior used are as follows : XXXX ) Truncated Credit Life and Disability w/o full disclosure to the Borrower. I worked through a real estate broker that dealt directly with the bank. I was told I had to agree to the terms " as is ''. Apparently, the premium " XXXX '' I paid expired in XXXX. This did not help when I transitioned out of the military in XX/XX/XXXX and was unemployed for two months. I was charged unreasonable late fees and could not take advantage of the any of the credit options I had purchased. Interesting US Bank offered " Life and Disability '' for people in their twenties but not insurance in case of unemployment. In addition, the total credit amount charged was {$4300.00} which is unreasonably high for a $ XXXX loan. 

XXXX ) Equity Skimming- There was no equity in my home when I took the " equity '' loan from US Bank. I took the first mortgage the same month from BoA that I took out my HELOC loan with US Bank. Again, due to my busy schedule I trusted the real estate broker and bank to do the right thing. 

XXXX ) Incorrect Assignment of Loan Type - When I look closely at the original loan document it is categorized as " Other ''. It appears to be more of a debt consolidation personal loan... not a HELOC. The Loan from US Bank paid off $ XXXX in credit card debt and a $ XXXX construction loan I took from BoA. Why was it even categorized as a HELOC? 

XXXX ) Escrow Advances - In XXXX US Bank opened an " Escrow Account '' eleven years after the loan was taken out. I called them multiple times to explain that my insurance and taxes were paid from my first XXXX and to remove the escrow account all together. Escrow advances leave the Borrower with a large sum to pay at closing. I currently have {$68.00} remaining to pay on my loan. US Bank has informed me that I owe them {$4700.00} for escrow advances taken on my " behalf ''. The Frank and Dodd act of XXXX only requires banks to take out escrow on the first liens for up to five years. The consumer has the right to close escrow accounts at any time with no explanation. 

XXXX ) Homeowners insurance was higher than the value of the home or the HELOC Loan - US Bank was the only party that was protected the premium insurance taken out on " my behalf ''. My property is worth $ XXXX. US Bank took out Homeowners insurance in the amount of $ XXXX or higher for approximately {$1100.00} per year. My loan with US Bank at the time they took out a lender forced policy was $ XXXX. Last year my loan amount was $ XXXX. If XXXX Bank were allowed to take out insurance to protect their interests, they should have only covered the remainder amount of the Loan to keep the " premiums '' lower for the consumer. Based on my research HELOC loans can not charge for insurance above the current amount due on the loan. 

XXXX ) Charging for homeowner 's insurance for twice in XXXX - After speaking to representatives I was informed US Bank charged 12-month insurance premiums once in XXXX and again in XXXX. I don't even know how this can happen. For the year XXXX, XXXX Bank charge {$2400.00} in homeowner 's insurance. This is on the XXXX. 

XXXX ) Discrepancy in documents - Premiums on the insurance declaration pages do not match the XXXX and XXXX XXXX. 

XXXX ) Asset Based Lending - The Lender required the loan be protected by my property. 

XXXX ) Unreasonable charges and additional fees without proper disclosure - The HELOC loan was for $ XXXX but the lender charged $ XXXX for Credit fees, $ XXXX in interest, and $ XXXX in Escrow advances. 

XXXX ) Lack of Transparency - There are no XXXX for XXXX, XXXX, and XXXX available to me to show the true amount taken. I have requested all documents from US Bank. 

XXXX ) Duplicate insurance - BoA and US Bank used the same insurance company, XXXX XXXX XXXX for the following years : XXXX, XXXX, and XXXX. I was told I could not correspond with the insurance company and that US Bank would not reach out to advocate for the consumer. 

XXXX ) Incorrect Credit Reporting - US Bank has been notorious for incorrect credit reporting. Loan type, balance, etc .... I have {$68.00} remaining on my $ XXXX loan. My credit report includes the " escrow advances '' XXXX Bank is fraudulently charging me. 

XXXX ) Reassignment of Loan Number - At some point during the life of the loan, likely after XXXX US Bank reassigned the Loan as a " First Lien '' and provided a new loan number. This was never explained to me and was an error with US Bank 's system and processes. 

XXXX ) Refusal to refund - US Bank Representative stated if I furnished insurance documents from my first mortgage lender they would credit my account for homeowner 's insurance taken in XXXX, XXXX, and XXXX. In XXXX they did refund me for a disbursement in the amount of {$1100.00} after I called to explain the situation. XXXX Bank reps continuously say they did not do this even though I have evidence of the refund / credit. I have no idea what numbers add up to the {$4700.00} dollars they say I owe them. 

XXXX ) XXXX Bank will not let me pay the {$68.00} to close my loan. 

XXXX ) Original loan documents are unsigned. 

It appears US Bank is going above and beyond to steal people 's property through predatory lending practices. They are like vultures swarming around live meat. It is fair enough they received a relatively large amount of profit in interest payments on the loan I took in XXXX. They should get their talons out of my back and other consumers and start playing a fair game or be penalized by Federal Reserve and CFPB. At the very minimum thoroughly audited.

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