Consumer complaint received 2026-05-18 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: U.S. BANCORP
State: MN

Complaint narrative:
BANK HAS BEEN IGNORING MY EMAILS AND VOICEMAIL. This is the email that I sent to them- U.S. Bank Loss Draft / Mortgage Servicing Department Re : Insurance Claim Delay Loan No. : REDACTED To Whom It May Concern : This letter serves as formal notice of significant and ongoing servicing noncompliance by U.S. Bank regarding the insurance proceeds associated with the abovereferenced property. The claim has remained unresolved for eight months, during which U.S. Bank has released no funds to restore or protect the collateral securing its own mortgage interest. XXXX XXXX issued two checks in XXXX, payable to the Estate of XXXX XXXX and U.S. Bank. These checks were not cashed, as the amounts are incorrect, disputed, and unusable, and therefore do not constitute acceptance or settlement of the claim particularly given that the property was categorized as a Category XXXX loss. Beginning this week, attorneys, XXXX XXXX, and I will begin the probate proceedings necessary to close the Estate. As part of those proceedings, we will be informing the court that U.S. Banks failure to release any insurance funds has directly prevented the Estate from rebuilding the property or restoring it to preloss condition. The Estate has complied with every requirement placed upon it. The only barrier to restoration is the banks continued failure to manage the lossdraft process in accordance with federal servicing standards. DeathScene Hazards and Servicer Liability This was not a routine propertydamage claim. It was a deathscene loss involving decomposition gases, VOCs, airborne biological particulates, and pathogen infiltration throughout the HVAC system, supply vents, return ducts, and structural components of the home. These are federally recognized hazardous conditions that require : full HVAC and duct system evaluation removal of gasabsorbed materials biological decontamination structural restoration where decomposition gases and airborne pathogens penetrated porous building materials XXXX XXXX has refused to address any of these hazards, despite knowing the XXXX XXXX XXXX XXXX formally declared the property uninhabitable and despite admitting they were aware of the uninhabitable status. U.S. Bank, as the FHAinsured mortgagee, is obligated under HUD Handbook 4000.1 to : protect and preserve the property ensure timely remediation prevent deterioration of the collateral avoid delays that jeopardize habitability ensure insurance proceeds are released promptly and used to restore the property Eight months of inaction, combined with the failure to release any insurance proceeds, has allowed a hazardous, uninhabitable condition to persist in direct violation of HUD servicing requirements, Regulation X, and the banks duty to protect the FHAinsured asset. U.S. Bank is now on notice that further delay is not an option. The bank is expected to take immediate corrective action within the next several days to protect the collateral, comply with federal servicing standards, and prevent additional regulatory violations. Continued inaction will be documented as part of the active CFPB investigation, the HUD compliance review, and the probate record, and will be attributed directly to U.S. Banks failure to fulfill its mandatory lossdraft obligations. Municipal Determination of Uninhabitability We have worked directly with the XXXXXXXX XXXX XXXXXXXX XXXX, which has formally determined that the property is uninhabitable. XXXX XXXX has acknowledged awareness of this determination. Although the Citys Code of Ordinances does not contain a section specific to Category 3 losses, the City has adopted the 2024 editions of the : International Building Code ( IBC ) International Residential Code ( IRC ) International Existing Building Code ( IEBC ) International Property Maintenance Code ( IPMC ) as referenced in Chapter 8, Article III, Section 852. Under these adopted codes, any structure deemed unsafe or unfit for habitation can not be occupied until hazards are fully remediated and verified through appropriate inspection and clearance procedures. Based on the extent of decomposition gases, airborne pathogens, HVAC infiltration, and the duration of uninhabitability, the property may require full structural restoration to meet these code requirements if XXXX XXXX continues to refuse to authorize proper remediation. Under FHA 4000.1, the mortgagee must ensure the property is restored to a safe, sound, and marketable condition, and the Citys determination remains in effect until certified remediation and clearance testing are completed. Servicing Violations and Federal Regulatory Exposure U.S. Bank is further reminded of its obligations under : 12 C.F.R. 1024.35 ( b ) ( 11 ) failure to pay insurance or related charges 12 C.F.R. 1024.35 ( b ) ( 7 ) lossmitigation and lossrelated errors 12 C.F.R. 1024.38 ( b ) ( 3 ) accurate records ; avoid delays causing consumer harm 12 C.F.R. 1024.40 ( b ) assign personnel capable of resolving lossrelated issues 12 C.F.R. 1024.41 ( c ) ( 2 ) ( iii ) prohibition on avoidable delays 12 C.F.R. 1024.41 ( a ) reasonable diligence in obtaining lossrelated documents CFPB Bulletin 201312 unreasonable delays in insurance disbursements prohibited CFPB Bulletin 201401 servicers must coordinate with insurers HUD Handbook 4000.1, Section III.A.2.k prompt release of insurance proceeds HUD Handbook 4000.1 , Section III.A.2.h protect and preserve the property HUD Mortgagee Letter 201805 avoid delays jeopardizing habitability HUD Mortgagee Letter 201511 oversight of insurers and timely release of funds HUD Mortgagee Letter 201323 proper handling of insurance proceeds U.S. Banks failure to release any funds for eight months, combined with its failure to ensure XXXX XXXX provides a usable evaluation, places the bank in direct conflict with these federal requirements. Given the active CFPB complaint, U.S. Banks responsibilities under Regulation X, and the HUD lossdraft servicing requirements applicable to mortgagees, the bank is now on notice that continued delay will be documented as part of both the probate record and the federal regulatory review already underway. Required Written Response Accordingly, I require written confirmation of the following without delay : 1. Whether U.S. Bank has contacted XXXX XXXX regarding the disputed and stale XXXX checks. 2. Whether U.S. Bank has escalated this matter internally given the federal regulatory oversight now in place. 3. What specific, immediate steps U.S. Bank will take to ensure the lossdraft process moves forward within the next several days, consistent with 12 C.F.R. 1024.35, 1024.38, 1024.40, 1024.41, and HUD Handbook 4000.1. 4. Whether U.S. Bank intends to comply with its FHA obligations to protect and preserve the collateral given the municipal uninhabitability determination and confirmed biohazards. 5. What correctiveaction plan U.S. Bank will implement to prevent further deterioration of the FHAinsured asset. The Estate can not remain open indefinitely to accommodate insurer or servicer delays. We expect U.S. Bank to act promptly to protect the collateral and comply with all applicable servicing standards. Sincerely, XXXX XXXX XXXX XXXX Executor, Estate of XXXX XXXX

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