Consumer complaint received 2026-01-03 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: U.S. BANCORP
State: TX

Complaint narrative:
To Whom It May Concern, I am submitting this complaint regarding my mortgage servicers handling of my FHA-insured loan modification request. The proposed modification increases my monthly payment significantly and fails to apply available FHA loss mitigation tools, creating an unsustainable outcome that contradicts the purpose of FHA loss mitigation. 

Loan Details- Loan Type : FHA-insured - Investor : Listed as Portfolio Mortgage Loans- Original Interest Rate : 3.25 % - Proposed Modified Interest Rate : 6.75 % - Current Monthly Payment : {$1400.00} - Proposed Modified Payment : {$1800.00} The proposed modification represents an increase of approximately {$350.00} per month, or over 20 %, following financial hardship. A loss mitigation modification that increases the borrowers payment undermines FHAs stated goal of preventing foreclosure and achieving long-term affordability. 

Partial Claim History I currently have existing FHA partial claims in the amounts of : - {$14000.00} - {$47000.00} The servicer has stated that the maximum remaining partial claim allowed is {$9400.00}, citing the FHA lifetime partial claim cap. I understand this limitation and do not dispute that the partial claim cap may be reached.

However, despite the exhaustion of partial claim capacity, the servicer has failed to properly apply other FHA-permitted loss mitigation tools, including : - Principal forbearance ( non-interest-bearing balance ) - Full XXXX term extension - A modification structure that maintains or reduces my pre-hardship payment I have repeatedly requested confirmation that principal forbearance was applied within the FHA loss mitigation waterfall and asked for the calculations supporting the Net Present Value ( NPV ) test. To date, I have not been provided documentation demonstrating that principal forbearance was considered or properly evaluated. 

Key Concerns 1. The modification increases my payment s

ubstantially, increasing the risk of re-default.

2. The servicer has relied primarily on a market-rate interest reset rather than applying available FHA affordability tools. 
3. The loan is identified as XXXXXXXX XXXX XXXX, which suggests the servicer has discretion to offer a non-standard modification while still complying with FHA insurance requirements. 
4. I have not been provided with clear documentation showing that all FHA loss mitigation options were fully exhausted prior to issuing this offer.

Requested Resolution I am requesting that the servicer be required to : 1. Re-evaluate my loan modification using the full FHA loss mitigation waterfall.

2. Apply principal forbearance and a full XXXX term to achieve an affordable and sustainable payment. 
3. Provide written documentation showing : - The FHA affordability target used- The NPV test results- Whether principal forbearance was applied or denied, and the specific FHA guideline cited if denied 4. Offer a modification that results in a payment at or below my pre-modification payment of {$1400.00}.

I am not refusing to work with my servicer ; I am requesting a modification that aligns with FHA loss mitigation intent and does not create a payment shock that undermines long-term sustainability. 

Thank you for your assistance in reviewing this matter. 

Sincerely, 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