Consumer complaint received 2019-03-22
Company: WELLS FARGO & COMPANY
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XX/XX/XXXX, after several months of negotiating, I obtained a new mortgage on my home from WELLS-FARGO. The agreement was for a 5 year, interest-only, ARM in the amount of {$930000.00}. The interest rate was 2.75 %. 
In XXXX, the Truth-in-Lending Disclosure at that time assured me that the rate WILL increase to 2.875 % at the end of 60 months. ( see attached ) The Good Faith Estimate says YES, a rate increase WILL come on XX/XX/XXXX, but it clearly it says that the monthly rate COULD rise as high as 4.75 %, but not necessarily so. 
During the negotiations, WELLS-FARGO sent an appraiser of their choice to my home for a market appraisal. The appraisal took place on XX/XX/XXXX. The home appraised at {>= $1,000,000}. ( see attached ) During the late summer of XXXX, I began negotiations with WELLS-FARGO in anticipation of my 5 year ARM expiring. 
I pointed out to them that their XXXX documents stated that my interest rate would increase to 2.875 %. It was noted at the bottom of the Truth in Lending Disclosure They claimed that the Truth-in-Lending was not the determination for my interest rate increase, and that they were going to increase my interest rate to 4.75 %. 
Apparently, I was in error when I believed that a Truth-In-Lending Disclosure notice from a Lender was to be believed as THE TRUTH. 
I contacted them to argue that point, but they stood their ground. 
They suggested that I apply for a NEW mortgage, and they sent me an application to apply for a NEW mortgage. 
I explained that I had already gone through an application process, and I was approved as being a good credit risk 5 years ago. I have had no negative changes in my financial condition over the past 5 years, and, in fact, my financial position is actually better now than it was 5 years ago. 
I just asked for a lower interest rate then their 4.75 % rate. I suggested 3.75 % or 4.0 % rate. 
They insisted on a new application, and I gave them a new application. 
Now for the good part : Remember, my home was appraised for {>= $1,000,000} 5 years ago by their choice of appraiser. 
On XX/XX/XXXX, Wells-Fargo sent an appraiser out to appraise my home. He did an Exterior-Only Inspection Residential Appraisal Report. When it was completed, I asked WELLS-FARGO for a copy of the report. They immediately sent me a copy of the report. ( see attached ). 
It determined that my homes market value was {$750000.00}. 
After receiving that appraisal, my application was denied. 
I complained to Wells-Fargo that this appraisal was a waste of their money, and that the appraiser NEVER ONCE STEPPED FOOT ON MY PROPERTY, MUCH LESS DID HE COME INTO THE HOUSE. 
I also explained that I am personally a licensed XXXX-in charge of my own XXXX XXXX  company, a member of the North Carolina XXXX XXXX XXXX, and the XXXX XXXX XXXX XXXX, and that I have owned and operated my own XXXX XXXX business in this area for 17 years. 
I know this market. 
I fully understand that most homeowners overestimate their homes real market value. But I live in a XXXX XXXX XXXX XXXX community, comprised of expensive homes that certainly did not lose their individual property values by 50 % or more in the past five years. Actually our market has remained fairly stable. 
And, to my surprise, WELLS-FARGO actually did agree, and they sent out a SECOND appraiser. 
I did not hear back from WELLS-FARGO for several weeks. When I inquired, they stated that they had not yet received the appraisal. I called the appraiser, whom I had never met before she came to my home, and asked if they had forwarded their appraisal to WELLS-FARGO. They responded that it had been forwarded to WELLS-FARGO just a few days after they visited my home, several weeks ago, and that they had already been PAID by WELLS-FARGO for their appraisal. 
I contacted Wells-Fargo, and asked why they were delaying my application. 
Over a period of several weeks, they continued to give me excuses as to why the delay, but they NEVER gave me an answer. 
Then, I received a call from a THIRD appraiser, wanting an appointment to appraise my home on an order from WELLS-FARGO. 
I was dumbfounded. 
I asked WELLS-FARGO why they needed another, THIRD appraisal. 
AND I ASKED WELLS-FARGO FOR A COPY OF THAT SECOND APPRAISAL. 
BELIEVE IT OR NOT, THEY CLAIMED THAT THE COULD NOT FIND THE SECOND APPRAISAL. 
For the next several weeks, we went back and forth, and EVERYONE, from Customer Service reps to management personnel, all claimed that they COULD NOT FIND the second appraisal. I have further documentation of those communications. 
In any case, on XX/XX/XXXX, the THIRD appraiser came out to my home. He completed his work, and submitted his report to WELLS-FARGO. His report appraised my home at {>= $1,000,000}. 
I asked for a copy of the third appraisal, and it was sent to me immediately. ( see attached ) BUT OVER ALL OF THOSE WEEKS, I WAS CONTINUALLY TOLD THAT WELLS-FARGO COULD NOT FIND MY SECOND APPRAISAL. 
Then, out of the blue, on XX/XX/XXXX, I received a letter from WELLS-FARGO, dated XX/XX/XXXX, that was their attempt to close the file. 
The letter was full of misstatements and out and out lies. ( see attached ) FROM THEIR LETTER : 1 ) Quote -- -- no error has occurred on their part.. How about lying to your customer? Of course, they never mentioned the innumerable telephone calls during which they denied ever having received appraisal # 2. Of course, they later said they " found '' it ( when? ) and found it unacceptable and not credible. In addition, they never mentioned the fact that the first appraisal, # 1, was a complete sham, but they were happy to accept that valuation until I complained about it.

2 ) They admit that they were unable to fulfill my request for copies of the appraisals.

Isnt that in defiance of the Rules and Regulations of the CFPB? And they admit it?

3 ) Quote -- -- -- '' you were advised that the last appraisal completed was not found.. That is incorrect. They claim to have lost the second appraisal, not the last ( the 3rd ) appraisal. Again, they admit that they could not find the 2nd appraisal.

4 ) Then, they have the audacity, after all of their claims of a lost appraisal, to admit that they received a completed appraisal # 2, from the appraiser that they chose. Amazing! Now, they seemed to have found it, but now they determined that her appraisal was not credible.

They finish the letter by saying that they admit that I asked, in writing, for an explanation as to why the second appraisal was not credible, but they claim that they are unable to fulfill that request.

Is that legal? They will not tell me what was wrong with the appraisal?

Then, my continued requests for a copy of the actual denied appraisal was again denied.

Are these people way out-of-bounds???

Is that legal? I thought that the CFPB REQUIRED them, upon request, to provide a copy of each appraisal.

By the way, I called the second appraiser, and asked for a copy of the appraisal. She denied my request, stating that their own ethics rules and regulations prohibit sharing it directly with a Buyer. They were hired by WELLS-FARGO, and they can only share their findings with their clients.

HOWEVER, I shared with the 2nd appraiser the figures that I received from appraiser # 1 and appraiser # 3. Although she could not give me a direct quote as to her valuation, she assured me that her appraisal was considerably higher than appraiser # 3.

This from a 30 year veteran of appraisals in this area., one who is highly respected, and one who was quite disturbed by the WELLS-FARGO statement that her appraisal was not credible. 
I suspect that WELLS-FARGO is back to playing games with their mortgages, and I would like the CFPD to look into these kinds of practices by WELLS-FARGO. 
Apparently, WELLS-FARGO feels it has the right to lie to their customers ( after all, I am still a continuing " customer '' with a mortgage held by WELLS-FARGO. ) WELLS-FARGO apparently feels as though they have a right to withhold an appraisal of a Buyer 's property. WELLS-FARGO apparently feels that the Truth-In-Lending statement that they provide, with their own notes on it making claims about a future rate hike, can just be ignored. And I leave you with one last thought : Do you think my age ( 81 ) has anything to do with the way hey have treated me???? Thank you., CFPB, for looking out for this consumer 's best interests, and exposing yet possibly more corrupt, or at least, inept, practices at WELLS-FARGO.

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