Consumer complaint received 2023-03-17
Company: U.S. BANCORP
State: MN
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
We are writing to file a complaint against U.S. Bank Mortgage regarding our 1st and 2nd mortgages secured by our personal residence. After promising to provide a modification/refinance solution during the Covid forbearance period, U.S. Bank is refusing to modify/refinance our 2nd mortgage post forbearance. 

in XXXX of XXXX, we placed our 1st and 2nd mortgages, both with U.S. Bank, on forbearance due to Covid. Before we submitted the forbearance application, we asked what would happen after they were removed from forbearance and we were informed that the loans would be modified and might even include a reduction of principal ( if our income was lower at the time of forbearance resolution ). I was subsequently assured of this multiple times throughout the forbearance period. 

In XXXX of XXXX, we applied, at our local U.S. Bank branch, for a refinance that would combine the 1st and 2nd mortgages into a single mortgage at the current interest rate, which was 2.75 %. 

In XXXX of XXXX, we were denied the refinance that would combine the two mortgages, so we filed a case with CFPB. 

In a letter from U.S. Bank dated XX/XX/XXXX, and in response to the XXXX case, we were informed that the XXXX XXXX would not allow the mortgages to be refinanced while they are in forbearance and that U.S. Bank would work to resolve our situation after the mortgages were no longer on forbearance. We took this to mean that they would modify/refinance after the forbearance period ended as was confirmed verbally over the phone. 

On XX/XX/XXXX, we received a letter that appeared to confirm in writing what we had been hearing verbally about an eventual modification/refinance post forbearance. 

In Late XXXX, our income was improving such that we requested our mortgages be removed from forbearance. We submitted " loss mitigation '' applications at that time and we complied with all requests for information for both mortgages. 

On XX/XX/XXXX of XXXX, our 1st mortgage was approved for a modification which resulted in a much lower int rate ( 2.875 % ) and much lower payment ( 40-year amortization ). We were satisfied with this resolution and looked forward to hearing about our 2nd mortgage. 

On XX/XX/XXXX, we received notification that our 2nd would NOT be modified or refinanced AT ALL and that our only option was a " short sale ''. We were shocked because expected a loan modification/refinance that would be similar to our 1st mortgage. After 14 months of actively working to end the forbearance ( and US Bank dragging their feet the whole time ), we learned that there is no nothing U.S. Bank could do but a " short sale ''.

This is extremely disappointing as very early on we acted in good faith to proactively resolve the forbearance with a refinance that would have resulted in a combined mortgage at 2.75 % int. and a 30-year amortization, but were denied. 

During the process, we complied in a timely manner with all application forms and information requests. Our financial situation has improved and is now better than it was when our first mortgage was modified, so there is no reason they should treat the 2nd mortgage any differently than the 1st mortgage.

We believe we are owed the modification we were promised. We request your help to ensure that we receive what we were promised. 

Thank you for your assistance with this matter.

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