Consumer complaint received 2020-06-11
Company: WELLS FARGO & COMPANY
State: CO
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XXXX XXXX 2020 my wife and I completed an application for a home equity line of credit ( HELOC ) with Wells Fargo. We have had a mortgage with Wells Fargo for more than 10 years, refinanced with Wells Fargo 5 years ago, and applied for a HELOC to construct a planned accessory dwelling and garage. 

Starting on XXXX XX/XX/2020 we began receiving requests, some for information that we had already provided. In response we provided digital copies of requested tax release forms on XXXX XX/XX/2020. On the same date ( XXXX XXXX ) we reiterated that all income for a home based business is listed on our tax returns and that our home is a legal 2-family with a 4br/2.5ba, 2500sf main home on two levels plus a XXXX 1br/1ba basement apartment with separate utilities and income from the rental unit is included in our income tax returns. 

A few weeks later we received a congratulations letter that our loan had been approved pending a strange request that we confirm that my wife does not have an alias ( she does not ). We responded and provided confirmation on XXXX XX/XX/2020 and on XXXX XX/XX/2020 we received a confirmation email stating, " Your loan has been approved. '' A month later, and after hiring a builder, we received a letter by XXXX dated XXXX XX/XX/2020 denying the approved loan for the reason of " Covid-19. '' We responded on XXXX XX/XX/2020 demanding immediate action. Shortly after, we received a second, nearly identical letter dated XXXX XX/XX/2020 claiming that the HELOC was declined because they don't offer HELOCs. 

In subsequent emails we have been given two additional reasons why the loan was denied. The third reason given is that Wells Fargo did not know that the 2-family home they have had been the lien holder on for a decade was a 2-family home. That has been proven to be a lie. Finally, representatives have stated ( on record ) that Wells Fargo is severely restricting homeowner access to equity. To that end, my wife and I have perfect credit ( +800 ), have never missed a mortgage payment with Wells Fargo, currently have over 70 % equity in our home, and the HELOC is 20 % of the home value. Since our last refinance our income has more than doubled to the point that our current monthly payment is less than 10 % of our adjusted gross income ( AGI ). Even with the entire HELOC, our monthly payment will be under 20 % ( AGI ). As a result, we do not believe this to be the reason either. 

Ultimately, Wells Fargo representatives have insisted that it was a mistake and asked for time to fix their mistake. However, after asking on XXXX XX/XX/2020 to have until XXXX XX/XX/2020 to resolve the issue, we received a message on XXXX XX/XX/2020 extending the deadline to XXXX XX/XX/2020. Then on XXXX XX/XX/2020 we received another message extending the deadline for ( more than ) another 2 weeks. At that point it became clear that Wells Fargo is just stalling and so we are filing this complaint.

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 monetary relief