Consumer complaint received 2018-08-23
Company: WELLS FARGO & COMPANY
State: IL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Attempting to have PMI wiped from my Wells Fargo mortgage loan number XXXX. Need an appraisal to determine if my loan is 80/20 LTV. Had a loan with wells for 14 months, all on time payments. 

Ordered our first appraisal on XX/XX/XXXX ( attached ). First appraisal came in at $ XXXX. I need $ XXXX for 80/20 LTV. They used 1 beds as comparable properties, when in reality my property is a 2 bed. Submitted a value reconsideration form for a second appraisal ( attached ). This new appraisal came in at the same value. 

This new appraisal contains factual errors and is a misrepresentation of closed real estate listings that are either cancelled or not closed properties. I will be filing a formal complaint against appraisers license, and will be contacting Wells Fargo for a refund on this appraisal and obtaining a new appraisal. XXXX XXXX has failed to deliver an accurate 2 bed / 1 bath appraisal on two opportunities. 

On the value reconsideration, the appraiser used two new comparable properties that never sold. One is a cancelled listing, the other is under contract. Its impossible to determine market value from two properties that have never closed. This is either a blatant error or a clear sign of incompetence. 

XXXX XXXX XXXX XXXX ( MLS XXXX ) 1 bed condo, that was on the market for 301 days, and never closed. The appraiser has this listed as " active '' when in fact it is a " cancelled '' listing. MLS sheet attached. This clearly can not be a comparable property for the sales comparison approach, as it never sold, and is not an active listing. Also, its a 1 bed property, without parking. The subject property is a 2 bed property with parking. 

XXXX XXXX XXXX XXXX ( MLS XXXX ) 2 bed condo, that is currently under contract. Its listed at $ XXXX. What happens if it sells for $ XXXX over the list price? What happens if it sells for $ XXXX? We can not assume this as a comparable property or use it to determine market value as it has not closed. MLS sheet attached. 

There are plenty of closed comparable properties in the area that the appraiser could use, which would easily get this property in the $ XXXX range it needs for 80/20 LTV ( actual comparable properties that have closed, that are 2 bed / 1 bath condos with parking ). In my value reconsideration form ( attached ), four of these properties are suggested. The appraiser chose not to use any of these properties and instead chose cancelled and under contract listings. 

See attached docs, and let me know how you plan to fix this, or when I can expect another adjustment and an accurate appraisal. 

Waiting for a third appraisal, almost 30 days later, still no response from Wells Fargo. Just got off the phone, they said they will mail me a letter in 14 business days. Making this process of an appraisal turn around take 45 business days, during which, I'm paying {$200.00} in PMI monthly.

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