Consumer complaint received 2024-11-03
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: U.S. BANCORP (NY)

Since my mortgage was transferred from US Bank to XXXX XXXX XXXX ( XXXX ), my efforts to secure financial hardship assistance have been met with significant obstacles. When US Bank held my loan, I was already in the process of applying for hardship relief due to financial difficulties. However, the transfer to XXXX interrupted this process, and I was informed that I would need to reapply for assistance. I promptly contacted XXXX to initiate this application but was told that the necessary documents would be sent to me shortly. Weeks have passed, and despite multiple follow-up calls, I have yet to receive the hardship application. Each call to the XXXX hardship department results in assurances that the application is on its way, but no tangible progress has been made. 

Meanwhile, XXXX has begun placing blue notices on my door and calling me frequently, which creates the impression that foreclosure may be imminent. This is incredibly distressing, especially since Ive been attempting in good faith to work with them to address my financial hardship. The communication from XXXX has been vague and inconsistent, with no clear instructions on how to proceed or any indication of when I might receive the necessary paperwork to continue my application. 

Additionally, I have recently discovered that XXXX has not made payments from my escrow account for taxes and insurancepayments that US Bank previously managed without issue. As a result, my property taxes are unpaid, and my homeowners insurance is at risk of lapsing, which could have serious financial and legal consequences for me. 

In light of this, I believe XXXX conduct violates several established legal standards set forth in relevant case law, as well as federal requirements under the Real Estate Settlement Procedures Act ( RESPA ) : 1. Failure to Provide Required Hardship Applications Under XXXX XXXX XXXX XXXX XXXX  ( XXXX  ), servicers are legally required to facilitate the loan modification review process with transparency, providing clear timelines and communicating effectively with borrowers. By failing to deliver the application materials needed to complete my hardship request, XXXX is impeding my right to apply for loss mitigation assistance. Additionally, XXXX XXXX. XXXX XXXX XXXX ( XXXX ) established that servicers must review loss mitigation options prior to initiating foreclosure. The ongoing notices on my door and constant phone calls create an atmosphere of pressure, suggesting potential foreclosure, which violates my right to a fair review process for hardship assistance. 
2. Failure to Communicate Effectively and Harassment Concerns In XXXX XXXX XXXX XXXX XXXX  ( XXXX ), the court reinforced the requirement for servicers to communicate clearly under RESPA. This means that XXXX should be responding to my inquiries with specific information and documentation regarding my application. The repeated verbal assurances without follow-up action fall short of this standard. Additionally, the ongoing phone calls and physical notices could be deemed harassing, given that my application remains unresolved. XXXX XXXX XXXX XXXX XXXX ( XXXX ) reinforces that servicers are required to notify borrowers of any substantial actions that could affect their rights, such as placing insurance or initiating foreclosure, with clarity and fairness. XXXX failure to provide a hardship application while simultaneously issuing foreboding notices directly contravenes this requirement, subjecting me to undue stress and uncertainty. 
XXXX. Escrow Account Mismanagement and Failure to Pay Taxes/Insurance Under RESPA, servicers managing escrow accounts are required to ensure that all escrowed payments, including taxes and insurance, are made in a timely manner. XXXX also touched upon servicers obligations regarding insurance, and XXXX failure to meet its duty to pay my taxes and insurance represents a severe oversight. By not applying the funds from my escrow account appropriately, XXXX is exposing me to potential lapses in insurance and delinquency on property taxesboth of which could have long-term financial consequences and even jeopardize my property ownership. 

Next Steps and Potential Remedies I plan to file a Qualified Written Request ( QWR ) under RESPA to formally demand that XXXX address these issues in writing. In this QWR, I will request : Immediate delivery of the hardship application, with a clear timeline for review and a specific contact point for any additional documentation they might require. 
A detailed accounting of the escrow account to clarify why my taxes and insurance have not been paid, along with XXXX explanation for this failure to comply with the terms initially managed by US Bank. 
An explanation of why I am receiving foreclosure-related notices and phone calls while still awaiting the hardship application, which should pause any collection or foreclosure activity until my application is resolved. 

In parallel, I am considering filing a complaint with the Consumer Financial Protection Bureau ( CFPB ). The CFPB has the authority to investigate and enforce consumer protection laws, including RESPA, especially where there are patterns of servicing abuse as evidenced in cases like XXXXXXXX XXXX XXXXXXXX. This complaint will outline XXXX failure to follow established protocols, harassment through undue notices, and mishandling of my escrow account. 

Finally, if these issues persist, I will seek legal counsel to explore the possibility of a RESPA claim against XXXX. This claim could potentially provide for : Damages : Compensation for any financial losses resulting from XXXX failure to fulfill its servicer obligations, including penalties associated with missed tax and insurance payments. 
Injunctive Relief : A court order compelling XXXX  to handle my application fairly, communicate clearly, and ensure proper use of my escrow account. 
Attorneys Fees : Since RESPA allows for recovery of legal fees if I prevail, XXXX may also be liable for the costs incurred to rectify their noncompliance. 

In conclusion, XXXX  actions appear to contravene multiple consumer protection standards and legal precedents established to prevent precisely this type of servicing abuse. I am prepared to hold them accountable through all necessary legal avenues to ensure my rights are respected and to prevent further financial or emotional harm.