U.S. Bancorp Mortgage Complaint

U.S. Bancorp Mortgage department,

Other mortgage Settlement process and costs Colorado

My wife and I obtained a construction to permanent mortgage loan through a loan officer at US Bank in early 2014, to provide financing for a custom home we were having built. We closed on the transaction on - -, 2014. The department within US Bank that handles the disbursement of draw requests to the contractor allowed for the contractor to obtain funds well beyond the completion of the home. The bank was provided progress inspections by - -, a party of THEIR choosing, which identified with photographs and completion percentages that the basement of the home had very little work completed, yet US Bank approved to fund the contractor budget items that would have required substantially more money to complete the basement which was part of our plans, specifications, and contract with the contractor. Upon receipt of the excess funds, the contractor promptly abandoned our job leaving us to hire a different - to complete the home so that we could obtain a certificate of occupancy and have a home to live in. I disputed the handling of the draw process once it was evident that the - had abandoned us, but the person handling our disbursement indicated that


well as the substantial amount of change orders that I funded to the - to ensure there were sufficient funds left in the loan proceeds to complete the home. The contractor then submit for full disbursement of - budget items that clearly would have required additional funds to complete the home. The negligence on the part of US Bank in allowing for our contractor to get over-funded on this project is the obvious reason that the contractor abandoned the job. He no longer had any financial incentive to honor his contractual obligations. At no point during the draw process, did US Bank or - - provide me with details of what the contractor was requesting for review. I demanded the information that was submitted by my contractor to - - and eventually they complied and provided the detail of the draw requests ( - ) as well as the inspection reports that were completed in conjunction with the draw requests. This happened after the contractor had already been over-funded and had made the decision to abandon us. Upon reviewing the supporting documentation and inspections, it became quite clear why the contractor chose to abandon the job.