Consumer complaint received 2024-07-02
Product: Mortgage — Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: U.S. BANCORP (WA)

I am writing to file a formal complaint regarding the mishandling of an assumable mortgage loan application by US Bank Assumptions and Underwriting Department.

My wife and I have experienced significant issues during the application process, which have caused us considerable distress financially and emotionally. 
Our first application was closed without warning or fair notice, despite our repeated attempts to contact the loan processor through phone, voicemail, and email. They stated that they sent two notices by mail however they were never received. We did receive a refund for our loan application fee in the amount of {$900.00} but it was addressed to the wrong residential address. Our address was XXXX XXXX, it was addressed to XXXX XXXX. The only reason we received it was because our mail person recognized my name and placed it in our mail box. ( see attached picture ). 
We have multiple documented emails from my realtor ( XXXX XXXX ) and I asking what they need, for updates and all with no response. ( see attached ). We received no responses to our inquiries. After closing our application for " non action '' on our part, we were informed that it could not be reopened and that we would have to reapply. 
Currently, we are in the process of our second application. Initially, the lender was much more responsive, our loan application was with the loan processor for 13 days from XX/XX/XXXX - XX/XX/XXXX then it was submitted to underwriting. However, after two weeks in underwriting XXXX XXXX XX/XX/XXXX, we received an email at the end of the workday at XXXX ET stating that the income from my job is not sustainable or approvable for loan repayment and " we are unable to continue ''. 
They made no attempt to gather information or ask us questions. This decision was made despite the clear and consistent evidence of my income. I have been employed as a XXXX  XXXX  with my department for nearly five years, earning a stable base salary supplemented by continuous overtime for the past four years without any gaps in base pay, overtime or benefits. My paystubs and W-2s, which I have submitted, unequivocally demonstrate this stability. Additionally, I provided letters from my fire departments accounting department, confirming that my base salary and overtime are consistent and unchanging. Despite this clear documentation, the loan processor and underwriter claim that I can not prove my income sustainability, contrary to FHA guidelines. 
It states clearly on page 226 section 1 part A of FHA 's single-family housing policy handbook " for employees who are salaried and whose income has been, and will likely be consistently earned the mortgagee must use the current salary to calculate effective income. '' It also states on page XXXX section v. part B for overtime that " the mortgagee may use overtime, bonus, or tip income as effective income, if the borrower has received this income for the past two years, and it is reasonably likely to continue. '' I have 4 years of base income with consistent overtime. They have looked past and disregarded this essential fact, even having a letter from my employer clearly stating that the base pay and overtime will not change even though I plan to live in a different state than the one I work in. 
I sent a letter initially explaining How I am going to be commuting from WA to my work place in XXXX XXXX, CA and in this letter stated my " current plan '' to work my hours. Which was just " a plan ''. This had nothing to do with how I get paid from my employer. It was from this letter they stated it would be a " significant change to my pay structure, '' which is absolutely false. They are assuming it will be without evidence. I provided clear evidence that it will not change my pay structure and they disregarded it and stated they " don't have evidence ''. 
On a phone call my loan processor stated that underwriting " is picky '', also stating that I need to have a clear schedule showing my " days on and my days off ''. This is impossible being a XXXX. Our days working and off are always changing, this is a common " normal '' with any fire department in this nation. 
As of today XX/XX/XXXX I have provided them with an explanation of my commute, a full month of flight expenses, and a letter showing that I have a place to stay in California free of charge, as well as the letter from my employer ( attached below ) stating there will be no change to my pay structure. I have not heard anything back from these two emails as well as an email sent today to the manager of the assumptions department as well as my loan processor asking for a follow up or verification that they received the previous correspondence.

This experience has been extremely frustrating and disheartening. The actions of the loan processor and underwriting team appear to be in direct violation of FHA guidelines, and their lack of communication and transparency has been unacceptable. I kindly request that the Consumer Financial Protection Bureau investigate this matter to ensure that we receive fair treatment and that proper procedures are followed by US Bank Assumptions Department. We believe that we have been unjustly denied the opportunity to secure this loan despite meeting all necessary criteria. 
Thank you for your attention to this matter. I look forward to your prompt response and resolution of this issue. 

Sincerely, XXXX XXXX