Consumer complaint received 2024-02-01
Company: WELLS FARGO & COMPANY
State: WA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage
Sub-issue: Confusing or misleading advertising or marketing

Complaint:
On XXXX XXXX, XXXX, I applied for a cash-out refinance from Wells Fargo XXXX I have banked with Wells Fargo for 23 years. At the time I applied, I owed approximately {$8000.00} on a first mortgage with a different lender and had no other liens on my property. Market value of my property according to XXXX was approximately {$800000.00}. I have a house and barn on XXXX acres of woodland and fenced pasture bordered by a year-'round creek XXXX miles south and west of XXXX, Washington XXXX My house was built in XXXX. 

I requested a {$120000.00} cash-out refinance. 

I told the first loan officer I spoke with, XXXX XXXX, that I was requesting the refinance for the purposes of home improvement and to pay off debt. I told her I needed to repair my roof which was original to the house and XXXX XXXX XXXX. 

Wells Fargo required me to pay for my appraisal upfront, a total of {$990.00}. I was told this amount was not refundable after the appraisal had taken place. I paid Wells Fargo this amount. 

I was conditionally approved for the cash-out refinance on XXXX XXXX. 

I produced every one of a multitude of documents requested by Wells Fargo, including reams of documents from the local auditor 's office required to satisfy underwriters that I had recorded well , road maintenance and easement agreements. Many documents Wells Fargo required were private and requesting them seemed intrusive, but having had a XXXX relationship with Wells and knowing they already had access to my bank records, I provided the documents as requested and hoped for the best. I spent many hours researching and providing the requested documents. 

Despite my need for a new roof, my homeowners insurance agreed to rewrite my policy at Wells Fargo 's ( repeated ) request ( Wells contacted my insurance agency multiple times about this, something my agent said was unusual ) to provide 100 % wind and hail coverage. The newly-issued policy showed Wells as loss payee and was sent to Wells Fargo . Wells Fargo knew I had adequate homeowners insurance coverage. 

I sent loan officers copies of my contract for a new roof scheduled to be replaced XXXX XXXX, XXXX, along with receipts showing I had made a good faith down payment. As promised, my roof has now been replaced, as of XX/XX/XXXX. 

The appraisal took place on XXXX XXXX. The appraiser appraised my home at {$710000.00}, despite noting that I needed a new roof, that a beam beneath my upper deck had rotted and needed to be replaced, and that the siding on my home " should be checked '' although issues with my siding, he said, were " cosmetic. '' The appraiser also noted I needed a second strap on my water heater and a plug-in carbon monoxide detector, the latter two items costing less than {$100.00}. The appraiser estimated that replacing the roof, staining the siding and replacing the beam in the deck would cost approximately {$30000.00}. 

Wells Fargo then told me that I would have to complete all repairs before my loan could close. Loan officers told me underwriting suggested that I ask the contractors to agree to complete the work but to wait to be paid from the title company after all of the work was completed. 

Wells Fargo also told me that all of the work done would have to be inspected at my expense. 

I told Wells Fargo that in the XXXX XXXX, siding can not be stained or painted until summertime because weather conditions do not allow for it. Their requirement meant that I would have to ask roofers and the deck contractor to do their work but wait until summer, six months away or longer, to be paid. 

My application was sent to underwriters for a secondary review. The new underwriters agreed that all of the work would have to be completed and inspected before my loan could close. 

It is not reasonable to ask roofers and other contractors to perform work for which they can not be paid for six months or longer in order to await weather conditions favorable for painting.The appraiser did not state that the siding on my house was damaged, dangerous or deficient, only that it should be " looked at '' because of " cosmetic '' issues, yet Wells was stating that closing of my loan hinged on the siding being stained. 

I applied for a comparatively small mortgage, {$120000.00}, on a house appraised at {$710000.00}, even with needed roof and other repairs. I satisfied all of Wells Fargo 's requests for information and had a conditional loan approval. I have a long relationship with Wells Fargo. I have no overdrafts to my checking account and have never been late on a Wells Fargo credit card payment. I do not have a single late payment on my credit report. I provided evidence to loan officers that my roof was scheduled for replacement. 

I am now out countless hours of research and negotiations along with {$990.00} for this appraisal. I have had my privacy invaded also. Wells Fargo should tell applicants upfront when they are applying for a cash-out refinance for the purpose of home improvement that their underwriters may require necessary repairs and inspections for which they will be required to pay before any loan will close. Failing to disclose this information seems deceptive and misleading. At the very least, Wells Fargo should include appraisal and inspection fees in closing costs and not require them upfront before closing.

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 non-monetary relief