Consumer complaint received 2016-03-02
Company: U.S. BANCORP
State: IA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Application, originator, mortgage broker

Complaint:
I went in to my bank with all the needed documentation so I could get an adequate loan estimate. I was prepare to not proceed at this time if it did n't make financial sense. I was looking for a refinance. I explained I 'm a single mother living paycheck to paycheck struggling to pay my mortgage for the home I bought with my ex and I 'm not attempting to keep my home on XXXX income. I explained I had little to no money to bring to close. She understood, presented me with options and provided me with a loan estimate with a cash to close estimate of {$54.00}, which I was comfortable with. I then was asked to pay {$390.00} now for " administration fees '', she explained I 'd get a refund from my old escrow as well as skip a payment, so I agreed to pay the {$390.00}. After an appraisal, that actually came back much higher then anticipated I decided to go with a PMI loan since I was much closer to the 80 % LTV then earlier thought ... instead of the lender paid PMI with a higher interest rate that we had originally planned. So we had to " start over '' or go back to underwriting so it push close back a few weeks. I received another Loan Estimate with the new rate and the cash to close was {$500.00}, I informed her that wAs getting to be higher then I felt comfortable she assured me it wAs just an estimate and the loan process " is a moving part '' and things can change. Also she had previously estimated my PMI as $ XXXX/month and then new estimate had it at $ XXXX month. As explained as things went up it made the amount I 'd be saving much smaller and my out of pocket high. She again said things should be down after I they get a new payoff quote once I paid my XXXX payment. So I reluctantly proceeded. Then finally as we are about to close she emails and says we are almost ready to set a closing date and I 'll just have to bring {$1800.00} to close ... XXXX {$1800.00}!!!! WAY more then I had planned or could afford. She said well you 'll get to skip a payment and get a refund of escrow in XXXX days! Money she had previously told me I could use to make " an extra principle only payment or use it for whatever I choose, such as paying off a higher interest rate credit card or whatever "!! Never was I told I 'd need to use all that for my cash to close. We had talked about from DAY XXXX that since we 'd be closing around XXXX XXXX, when my taxes were due, WE would have to pay the taxes with the new loAn and then I 'd get a refund from my old mortgage companies. We already knew by looking at my statements that my escrow from my current company would be SHORT {$600.00} for taxes!!! SO she KNEW and told me we 'd be covering taxes but somehow failed to include it in my $ XXXX loan estimate that she gave me. Leaving me short my entire taxes ... {$1700.00} and having to come up with that cash and then waiting XXXX days for my escrow refund ... that we KNEW would only be {$1100.00}. I do n't have {$1800.00} cash to pay now. So they offered to raise my loan {$2000.00} and pushing close back a few weeks ... again. Now a new loan estimate of $ XXXX made this much less of a good deal then she had presented to me. I called her manager to complain. He offered nothing and asked what I wanted. I said I want my {$390.00} back and I 'm going elsewhere. He declined and said he speak with her and see what she was thinking but assured me I 'd never been given false information, he said he 'd call me back after speaking with her. That was 5 days ago and I 've never heard from either of them again!! She had previously told me I could walk away but I 'd have to pay MORE FEES then the {$390.00} I 'd already spent!

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