Consumer complaint received 2023-07-24
Company: WELLS FARGO & COMPANY
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Original mortgage [ XX/XX/XXXX ], refinanced with WELLS FARGO on XX/XX/XXXX. 
Mortgage summary is as followed- 1- Loan Term : 30yrs.

2- Interest Rate : 6 %. 

3- [ Initial ] Outstanding Principal : $ XXXX. 

4- Current Outstanding Principal Balance : {$220000.00}. 

5- Current Monthly Mortgage payment : {$2600.00}. 

6- Current Monthly Interest payment : {$1100.00}. 

7-  Current Monthly Principal payment : {$760.00} 8- Current Net Monthly Escrow payment : {$760.00}. 

9- CURRENT TOTAL PAYMENT AMOUNT : {$2600.00} A- The issues of CONSTRUCTIVE FRAUD ; NEGATIVE EQUITY & NEGATIVE AMORTIZATION were raised by " mortgagor '' when he conducted some routine arithmetical calculations using the interest rate of 6 %, and the [ INITIAL ] outstanding principal balance to arrive at actual monthly principal payments of ( {$870.00} ). 

B- The discrepancy discovered, was in the comparative principal amount WELLS FARGO assigned to mortgagor 's monthly mortgage payments, AND the formulaic arithmetical calculations used to arrive at the natural monthly principal payments .... namely ; 1- [ former ] Outstanding Principal : $ XXXX ..... DIVIDED BY ... .... 

2- Loan Term : 30yrs ..... DIVIDED BY ... ... 12 months ... .equals {$870.00}. 


C- Resulting from the above ( formulaic mathematical calculation ), " mortgagor '' found that when comparing the result to WELLS FARGO 's assigned monthly ( principal ) mortgage payments. An event of " negative amortization & negative equity '' resulted. 

As the lesser of the two comparable principals was assigned to " mortgagor ' '' s monthly payments by Wells Fargo. Where said monthly payments " arbitrarily '' calculated and assigned by WELLS FARGO, enriches themselves by way of excessive interest payments and longer loan terms etc. 

In Summary, the " amortization schedule '' as of XX/XX/XXXX, being the very first principal payment. Is skewed, deeply abbreviated and discounted to the result of {$310.00} ( instead of {$870.00} ). Resulting in the conspicuous NEGATIVE EQUITY, due to the difference of {$550.00}, resulting from the discrepancy between the FALSE Wells Fargo amortization schedule 's PRINCIPAL PAYMENT ( {$310.00} ), and the genuine/orthodox, formulaic arithmetical result of {$870.00}. 

The " constructive fraud '' emerges here and in other places, but for the sake of brevity. 

The difference of {$550.00} resulting from the discrepancy between the two contravening and conflicting " monthly payments '' ... vis-a-vis.. Wells Fargo 's amortization schedule , and the Arithmetical Formulaic monthly payments . 

The discrepancy amount ... {$550.00}, is then kicked back by Wells Fargo to the initial OUTSTANDING PRINCIPAL, thereby fraudulently enriching Wells Fargo by way of astronomical future Interest Payments and further extending the terms of the loan, to the detriment of XXXX XXXX, by way of NEGATIVE EQUITY ; NEGATIVE AMORTIZATION... etc.

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