Consumer complaint received 2026-04-23 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Trying to communicate with the company to fix an issue with the application process
Company: U.S. BANCORP
State: FL

Complaint narrative:
I am filing this complaint against U.S. Bank regarding an excessive lender-placed insurance charge for a 6-day gap in homeowners ' insurance coverage. The charge appears inconsistent with the requirement under RESPA and CFPB Regulation X that lender-placed insurance charges be bona fide and reasonable, and is not supported by market-based underwriting of the property. 1. The Facts My homeowners ' insurance policy expired on XX/XX/year>, at XXXX XXXX. A replacement was in effect and resolved as promptly as my new insurer 's underwriting process allowed. The new policy was effective XX/XX/year>. U.S. Bank 's second and final notice, dated XX/XX/year>, states that the lender-placed insurance they intend to charge for these 6 days will be calculated at an annualized rate of {$19000.00}. which translates to a weekly rate, this equals {$380.00} per week. For 6 days, the pro-rated charge would be approximately {$320.00}. 2. The Rate Is Not Bona Fide or Reasonable Two consecutive homeowners ' policies, both issued by licensed insurers for this exact property, establish the actual market rate for coverage : Policy. Annual Premium Weekly Rate Prior homeowners policy {$6000.00} {$110.00} Current homeowners ' policy {$4000.00}. {$76.00} ( $ XXXX dwelling coverage ) U.S. Bank lender-placed rate. {$19000.00} {$380.00} U.S. Bank 's rate is 4.9 times higher than the current market rate for this specific property. There is no apparent change in risk profile, property characteristics, or coverage level that would justify a nearly fivefold increase in premium for the same collateral. U.S. Bank 's own letter acknowledges that the lender-placed insurance " will cost an estimated {$19000.00} annually, which may be significantly more expensive than insurance you can buy yourself, '' and " may not provide as much coverage as an insurance policy you buy yourself. '' By their own admission, the lender-placed policy may not provide equivalent consumer coverage while being significantly more expensive than the coverage already in place on this property. 3. Calculation Error : 6 Days Billed as 7. U.S. Bank i s calculating the charge every week ( {$19000.00} + XXXX = {$380.00} per week ). However, the actual gap was 6 days, not 7. Even under U.S. Bank 's own stated weekly calculation method, the charge must be prorated to the actual 6-day period. Billing a full 7-day Week results in an overcharge of approximately {$54.00}, with the correct amount being {$380.00} x ( XXXX ) = {$320.00}. 4. Prior Contact with U.S. Bank I contacted U.S. Bank directly and spoke with a supervisor t o request a review or adjustment of this charge. My request was denied without any explanation of the underwriting basis for the {$19000.00} annual rate. 5. What I Am Requesting 1. Documentation of the underwriting basis and property-specific assumptions used to calculate the {$19000.00} annualized lender-placed insurance rate. 2. A recalculation of the charge using a rate that reflects a reasonable, market-based underwriting for this property, consistent with two consecutive insurer-verified policies priced between {$4000.00} and {$6000.00} annually. If the current rate can not be substantiated with property-specific underwriting assumptions, I request that it be adjusted accordingly. 3. Correction of the day-count error : the charge must reflect 6 days, not 7, under U.S. Bank 's own weekly calculation method. 4. A full review of this charge, given that the lapse was brief, unintentional, and resolved as quickly as the insurer 's underwriting process permitted, and that the lender 's collateral is currently fully protected under a {>= $1,000,000} dwelling coverage policy.

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