Consumer complaint received 2019-12-27
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: U.S. BANCORP (CA)

In XX/XX/XXXX, I reached out to US Bank to request a refinance where I wanted to combine my existing $ XXXX HELOC with US Bank and approximately $ 400K mortgage I currently had with XXXX and secure another HELOC for $ XXXX. I spoke with the banker, XXXX XXXX, and agreed to proceed in early XXXX. I was told that there would be no closing costs ( assuming these were built into my rate ). He said he would apply credits for being an existing US Bank customer. 

We experienced several mishaps during the loan process, including an appraisal which was slightly lower than I had expected. When I pushed back on this, me and my fiance ( a XXXX XXXX XXXX ) sent 8 similar listings in our area with higher appraisals. XXXX did not appear to know what to do with this information and asked us to select 3. We did, but subsequently, I even accepted the lower appraisal and the lower new HELOC line of $ XXXX. 

Towards the end of the process in early XXXX, XXXX XXXX who was XXXX XXXX  assistant, informed me that my current HELOC would need to be reduced to $ XXXX prior to us completing the refi. I called XXXX immediately and said I was not comfortable with this. He assured me that this was standard process and that everything would be reinstated back to the original terms if the refi did not complete. I again confirmed this in emails to XXXX who assured me not to worry. 

Towards the end of XXXX, when the process was finalizing, I received my disclosures which indicated that I would need to pay approximately $ 10K in  closing costs. I immediately reached out to XXXX who said that costs had increased, but I would receive $ XXXX back after closing. No one informed of these costs increasing, and I would've owed them had I not carefully read the disclosures. After doing a cost-benefit analysis, I informed them that I wanted to cancel the refi as the terms were no longer financially favorable to me. Neither XXXX nor XXXX responded. I received emails from XXXX XXXX, a loan processor, as though nothing happened, and I finally told her that I was cancelling due to unforseen high closing costs. She confirmed my cancellation. 

I assumed my HELOC would be reinstated back to $ XXXX as promised. When I called US Bank to confirm on XX/XX/XXXX, the representative, XXXX, said she would check and get back to me. I received no response. I called again on on XX/XX/XXXX and spoke to XXXX but she also didn't know and said she would check and get back to me. No word. On XX/XX/XXXX, I spoke to XXXX who finally informed me that the HELOC can not be reinstated because the refi was approved even though I had requested the cancellation. This was new news to me as no one told me about it. On XX/XX/XXXX, I notified everyone who worked on my refi ( XXXX XXXX, XXXX XXXX, XXXX XXXX ) to let them know the situation with the HELOC. I asked them to please respond within 48 hours, but I heard nothing back. 

I called again today on XX/XX/XXXX to speak to a manager. I was told I would receive a return call within 15 minutes. It has been 3 hours and no word. 

At this point, my HELOC is now a paydown loan only. This means I can pay it down but can not borrow anything. As this is my source of emergency funds, I am not paying it down and am instead accruing interest on the balance.