Consumer complaint received 2020-11-21
Company: WELLS FARGO & COMPANY
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Im making this complaint in regards to Wells Fargo Mortgage. My wife and I have been mortgage holders with Wells Fargo for over 2 years. We have a conventional loan at a 5 % interest rate. When the economy was struck with the covid-19 virus many of our lenders contacted us in regards of different programs they were offering to help during the pandemic. Wells Fargo had the option of a forbearance program in which it was explained to us that nothing would be reported as derogatory, and all payments would move to the rear of the loan. They told us because of our excellent credit history we qualified for the program. This sounded great to us as we could save some money with all the uncertainty of the direction the country was headed. So we accepted the program for the months of XXXX, XXXX and XXXX. We then started back paying our mortgage in XXXX and have not missed nor been late on a payment since then. Because rates were at an all-time low we decided we wanted to lower our interest rate and get a lower monthly payment by refinancing. We both have over XXXX credit scores and received an interest rate of 2.6 % which offered us a {$300.00} savings through XXXX. The process was a breeze everything was going good until payoff time. Wells Fargo replaced the payments to the end as a 2nd unpaid principle balance as if it were another mortgage. According to XXXX the XXXX XXXX program will not allow refinancing for 2 unpaid principle balances. The document Wells Fargo has shown 1st unpaid principle balance XXXX and then a 2nd unpaid principle balance of XXXX. XXXX lenders said this is written up wrong, it should be ( 1 ) unpaid principle balance so that a full payoff can be distributed. XXXX then tried to contact Wells Fargo to no avail. I then was able to speak with an agent of Wells Fargo and was told that this was how Wells Fargo forbearance program worked, I explained to the agent that this information was not given to me when we were informed about the program she then stated it was because they did not have all the information at that time. I then asked if I could just payoff the 2nd unpaid principle balance so I can have the 1st unpaid balance refinanced, she told me that I couldnt pay off the 2nd unpaid principle balance before the paying off the 1st unpaid principle balance in which I would not be able to refinance the loan at all. After hanging up I called other lenders to get more info on this manner and they all stated that Wells Fargo is wrong and its illegal. A 2nd unpaid principle balance is the same as a 2nd mortgage and we did not apply for a 2nd anything, nor is this 2nd unpaid balance on our credit report. They did not give me the information upfront, which would have given me the opportunity to decline for not being able to refinance in the future. Wells Fargo later said that I could refinance through them, but I declined. This is a time where corporate America should be helping its consumers, But Wells Fargo has shown that they arent interested in helping the consumer they are interested in filling their pockets with the working man money. Many people are stuck in high interest rates when rates are at an all-time low because of these misinformed forbearance programs.

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