Consumer complaint received 2017-04-24
Company: U.S. BANCORP
State: AZ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On   XXXX   XXXX   XXXX   I called  US Bank  regarding a letter they sent me that my mortgage was going to mature in  XXXX   XXXX  and that I had to pay in full the remaining balance or refinance. I called to discuss my options on refinancing the home. After a discussion on loan balance on my primary and secondary and home value, it was told to me that I did not qualify to refinance. I then asked what my options were if the loan matured and what would happen. The representative said she could not help as she only handled refinances and would need to transfer me to Customer Service. I spoke to the Customer Service representative and she then said she could not handle and would need to transfer me to a loa n specialist. After reviewing my situation with the specialist she could not help me and said that my only option was to speak to the loan modification specialist. I then spoke to the loan modification specialist and she explained that i  would need t o apply for the loan modification and depending on my case it may or may not be approved. She advised me to wait until my loan matures which is 1 year away. I told her I did not  want to wait as I wanted to work with the bank to get this resolved now and discuss my options. I could not qualify for the refinance because my house would not appraise at the value to meet a 90 % loan to value threshold. She indicated that the loan modification application would be mailed to me. She said it would take  XXXX  days to bet processed but did warn me that if I accepted the modification that it would impact m y credit score.      What surprises me is that I have been a customer for 20 years wit h US Bank and h ave been in good standings throughout that timeframe. I am calling to try to work with the bank to arrange a solution and they have nothing to offer. She indicated that when it matures I would go in to collections for the full amount which in turn would impact my credit. I asked that she check with a superior as I clearly did not fall in to the normal criteria for modifications and not sure I need a modification but it appears no one I spoke to had any solutions or support.      US Bank has a long standing customer with excellent credit ( 800+ score ) and they have no other solution than to tell me to wait and/or apply for a modification ( which most likely I would not qualify for ). In the meantime I will submit for the modification to see what the formal outcome is but it seems inappropriate that a good customer would have to negatively impact their credit score. I am proactively trying to resolve my situation and it appears that the bank is giving me no options. The customer service I received is terrible but It appears that if I had been in a defaulting status and not fulfilling my responsibilities that I might have some options. Its unfortunate, that I could not get someone to work with me to a positive result for both of us.

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