Consumer complaint received 2025-09-27 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: U.S. BANCORP
State: CA

Complaint narrative:
On XX/XX/XXXX, I submitted my initial application for a loan modification with U.S. Bank for my mortgage account XXXX This request was prompted by significant financial hardship resulting from an ongoing XXXXXXXX emergency involving a family member in the XXXX, which has required substantial out-of-pocket expenditures and disrupted my ability to maintain regular payments without assistance. Specifically, I recently paid approximately {$20000.00} to a hospital in the XXXX for XXXX XXXX treatment, and there are continuing costs associated with XXXX XXXX XXXX. These unforeseen expenses have created a temporary but acute financial strain, despite my otherwise stable income and positive loan-to-value ratio. 
Over the subsequent three weeks, I diligently followed up with U.S. Bank representatives multiple times to address their requests for additional documentation. Initially, the bank identified approximately seven items as incomplete or requiring further verification. I promptly provided the majority of these, including : Two forms of income verification for the co-borrowers XXXX payments, along with bank statements confirming that these payments are being directly deposited into our joint account. 
My companys XXXX federal tax return, as I was unable to furnish a current profit and loss statement or XXXX tax return due to the aforementioned emergency situation in the XXXX, which has delayed my tax filing. I explained this context in detail during follow-up communications. 
Detailed evidence of my financial distress, including receipts and documentation for the {$20000.00} hospital payment and ongoing rehabilitation expenses, to demonstrate the hardships legitimacy and temporary nature. 
Despite these submissions, U.S. Bank has continued to request piecemeal additional information, prolonging the review process without clear resolution. I have been waiting for a decision on my application for over three weeks since the initial filing, and the lack of timely feedback has exacerbated my financial uncertainty. My interactions have been limited to front-line customer service agents, who appear to lack the authority or access to underwriters to provide substantive guidance on the process, eligibility criteria, or next steps. This has left me without a transparent understanding of how my application is being evaluated. 
I am concerned that U.S. Banks handling of my loan modification request may not fully comply with applicable federal regulations governing mortgage servicing and loss mitigation. Under the Real Estate Settlement Procedures Act ( RESPA ), as implemented by Regulation X ( 12 CFR Part 1024 ), mortgage servicers like U.S. Bank are required to evaluate complete loss mitigation applications within 30 days of receipt and provide borrowers with a written notice of determination. If an application is incomplete, the servicer must notify the borrower within five business days and allow reasonable time to submit the missing items. In my case, I believe my application became complete after fulfilling the requested verifications, yet no timely decision has been issued. 
Additionally, while Regulation Z ( Truth in Lending Act, 12 CFR Part 1026 ) primarily addresses disclosures, it intersects with loss mitigation by requiring fair and transparent credit practices. For loans potentially insured or regulated by the U.S. Department of Housing and Urban Development ( HUD ), such as FHA mortgages, HUD Handbook 4000.1 outlines requirements for servicers to offer viable loss mitigation options to qualified borrowers facing hardship, prioritizing modifications that allow homeowners to retain their properties when feasible. My loan maintains a strong loan-to-value ratio, and my combined household incomebolstered by verified XXXX payments and my business earningssupports my ability to sustain modified payments. I meet the standard criteria for approval : demonstrated hardship, sufficient income for affordability post-modification, and a commitment to homeownership. 
U.S. Banks apparent delays and lack of direct engagement with decision-makers suggest a potential failure to adhere to these guidelines, which are designed to protect consumers from unfair servicing practices. This is particularly troubling given the CFPBs emphasis on servicers providing meaningful assistance during periods of financial distress, as highlighted in CFPB Supervisory Highlights and bulletins on mortgage servicing. 
I respectfully request that the CFPB investigate U.S. Banks processing of my loan modification application for compliance with RESPA/Regulation X, Regulation Z, and HUD guidelines . Furthermore, I urge U.S. Bank to expedite their review and approve the modification, as it aligns with federal mandates to offer relief to eligible borrowers. Approving this would not only resolve my immediate hardship but also prevent potential escalation to foreclosure, benefiting all parties by preserving the loans performing status. I am prepared to provide any further details or documentation to facilitate a swift resolution. 

Thank you for your attention to this matter.

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 non-monetary relief