Consumer complaint received 2015-09-30
Company: U.S. BANCORP
State: CO
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Credit decision / Underwriting

Complaint:
I applied for a Home Equity Line of Credit through US Bank. I was recently denied credit and the bank 's explanation is not convincing. When I applied for the loan I stated my income at approximately XXXX a month, XXXX in VA XXXX payments and XXXX in rental income. According to my last phone call with US Bank with Production Manager XXXX XXXX in the Minnesota HQ he indicated that I was rejected for the HELOC because they did not allow my rental income to be considered. US Bank also counted my home and condo mortgage and associated fees against me. When I applied for the loan the representatives asked for my mortgage payments and values and never indicated that they would count those against me. In fact, they said everything looked good for a loan. I had only requested {$40000.00} but the US Bank Representative said I could get up to {$72000.00}. To back that up, I was sent a {$72000.00} approval by US Bank Consumer Loan Processing Analyst XXXX XXXX. The e-mail asked for verification of my information after which I was told I would be given the loan. I provided all the information. XXXX XXXX informed me that if the information I provided was accurate I would be approved. It was accurate. I attempted to communicate with XXXX XXXX. to stay informed of the process. I reached him just that one time and asked for better communication. I told him it was ok to e-mail me if that was easier for him. I felt I needed do as much as possible to simplify things for him since I felt I had no value to him at all. He had refused to communicate with me and he continued to ignore my e-mails, my calls, and voice mails. 
I turned to my local branch for help. XXXX at the XXXX XXXX XXXX XXXX XXXX was my only source of information. She was extremely helpful and I have no complaint with her. The last time I called her she apologized for not returning a call to me. She said that XXXX XXXX had pulled the file from her and instructed her to stop speaking with me. 

I believe my status as a XXXX person, and perhaps the fact that I am XXXX thru the VA, led XXXX XXXX to treat me differently. The XXXX are frequently taken advantage of due to their diminished capacity to stand up for themselves. I believe this to be the case. I believe XXXX XXXX was off-put by me in some way and retaliated against me. Even if you find that other people in my situation would have been denied credit, you will not find this level of mistreatment. I called US Bank for help. XXXX XXXX ( ID XXXX ) a manager in XXXX assigned XXXX XXXX to me. When XXXX XXXX called he tried to convince me that my denial was purely based on credit. His argument did not hold water. He says that I was auto-approved, but he indicated that all the same information that was used on the auto approval was used on the denial. My mortgages, income, etc was considered in the approval and the denial. They had all the numbers from the beginning. The only difference was that the representative who entered my application put income of {$1700.00} a month instead of {$1500.00} per month. ( Apparently a representative error ) XXXX XXXX was the first to inform me that my mortgage payments counted against me. How could I be pre-approved for {$72000.00} if that was the case? When asked if I could be approved at any level for a HELOC XXXX XXXX said I could not. Despite my " excellent '' credit, as determined by my credit scores, and XXXX XXXX 's own belief that I could pay the loan, he said I was not creditworthy. My house was appraised by US Bank at {$310000.00}. We only owe about {$180000.00} with no second mortgages. This loan would be secured by that home. How could I go from a {$72000.00} approval to nothing with the only difference being {$200.00} a month in income? Please look into this matter, especially my treatment at the hands of XXXX XXXX. 

Thank you

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation