Consumer complaint received 2022-09-27
Company: U.S. BANCORP
State: IL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
I received a letter from my lender on XX/XX/XXXX stating that my loan is not FHA insurable and a refund of the MIP has been requested and that they will be adding it to the principal as a curtailment. I contacted my lender and requested for my money to be refunded to me as I have been paying that money every month in my mortgage the lender told me that it has to go to the principal per FHA I replied do not agree with that it is my money and it should come back to me I requested that they show me in my contract where it states what they are saying and what they are trying to do I was told it would take four days to investigate and they would then send me a letter explaining I received a letter around the XXXX of XXXX it just stated the same thing I was told on the phone and there was no information or supporting documents from my contract stating their claim as I requested. I was then told to contact HUD FHA if I had any questions. I called the regional office in XXXX and explained to them my situation that my loan is not FHA insurable and I am due a refund of my MIP they referred me to support center and the resource center In speaking with them I was informed that if I was not selling my home or if I was not refinancing my home then the MIP refund should come back to me I told them that I am not selling my home nor am I refinancing my home that I just bought my home three years ago in XXXX of 2019 They also stated that usually HUD would send the refund to the lender and the lender would then cut a check and send the refund to the borrower. I received a few emails from FHA giving me information on what I could do next then I called the lender back and I told them about the about the conversation I had with FHA in regards to my MIP refund and the fact that I am not selling nor am I refinancing and that my refund should come back to me they just kept saying the same thing over and over I spoke with someone around XX/XX/XXXX she said that she see that I called before and requested information to be sent to me from my contract I asked her what does it mean not insurable after putting me on hold she returned and stated that it just mean that the MIP is no longer required I asked than why cant I get my money back she had the same conversation that it is being added to my principal I asked that they send me a copy of the letter they received from HUD she then asked me was I filling a form to reverse my refund from the principal because the refund has already been added and that I should check my account if I do on line banking she then stated that she see a payment of XXXX to my principal and did I make that payment I told her no I did not and that is the money in question why would I give money away that would benefit me if I had it she stated that she would put in a request for an investigation and to give her until Monday XX/XX/XXXX or the XXXX then she would call me back she stated that if there is no letter she will put in a request for my check to be sent to me I told her ok I would I also stated that a curtailment is extra money that is what it mean right she hesitated to answer I told her this is not extra money it is a refund money that should not have been paid there for it should come back to me as I am the one who has been paying it monthly as part of my mortgage not US BANK so why are they trying to take my money I received a call back on the XXXX she said there was no letter to send me and that it would benefit me in the long run when I pay off my house that it would cut down on the interest I told her I am not concerned about 27 years from now if there was an overage they would give that back so why not my refund I received another letter stating both the Upfront MIP and the periodic MIP paid by or for the borrower is to be refunded

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