Consumer complaint received 2018-06-26
Company: WELLS FARGO & COMPANY
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I wanted to find out if I was eligible to remove the Private Mortgage Insurance ( PMI )  from my mortgage. I contacted Wells Fargo about the issue. They gave me a couple options that were based upon the current value of my home vs paying off a total of 20 % of my mortgage ( which is not an option for me based upon my financial situation/XXXX XXXX   XXXX veteran ). The value of the home is determined by a Wells Fargo contracted appraiser and the process is started by submitting an appraisal request form and paying a fee of about {$500.00}. I did this. 

My home was appraised and came in {$10000.00} below the value needed to remove PMI. I disagreed with the appraisal based upon the comparable sales used by the appraiser ( several were six months old or older ( he did increase the value based upon time using a number explained later ) or from a neighboring less desirable neighborhood with an HOA/un-kept homes and property/higher crime rate ). I provided six comparable sales from within my neighborhood, appraisals from several websites ( XXXX, XXXX, etc. ), and analytical data based upon sales that showed that the rate of home values in my neighborhood were increasing at a higher rate than the appraiser used when determining the current value of comparable homes that sold six or more months ago ( the appraiser probably used a national average ). 

The reviewer of my appeal was the same appraiser and he agreed with his initial appraisal, which is not surprising because he was reviewing his own work. An interesting fact about his initial appraisal is that it stated what he estimated the neighborhood value would increase at and in the time between his appraisal and the review, it was already incorrect. I called Wells Fargo and requested a third party appraisal ( a different appraisal person and company ) approved by Wells Fargo because the review process of my appraisal was flawed and bias ( having the same person check his own work ). 

Well Fargo promised to look into the matter and assured me that things would be handled fairly. Two-four weeks later I had not heard anything from Wells Fargo so I called to check on my complaint and left a voice mail. Later the same day a representative from Wells Fargo returned my call and said that my complaint had been reviewed, Wells Fargo had done all that they legally had to do, and nothing more would be done. 

The most upsetting part of this was the persons response when I said that they had lost my business because I had been a 30+ year customer for all my banking and mortgages. The representative said that I could close down my banking accounts but I couldnt leave my mortgages unless they were refinanced by another institution ( which I knew ) but then he laughed and said that most likely Wells Fargo would buy the loans back and I would still be a customer. 

This entire process has been very alarming because Wells Fargo selected the appraisal company and has the only/final say in removing the PMI from my mortgage. They can stack the deck however it benefits them the best in any type of appraisal or review process situation because the homeowner has no say or recourse. Wells Fargos review of my appeal does not pass the legal standard for a fair and honest appeal ( of any type ) and also reflects poorly upon their overall business practices. Wells Fargos disrespectful customer service is outrageous and unforgivable for any business, let alone for a loyal 30+ year customer, and a XXXX XXXX XXXX veteran.

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