Consumer complaint received 2016-04-15
Company: WELLS FARGO & COMPANY
State: IL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Application, originator, mortgage broker

Complaint:
We are trying to obtain a FHA loan however during the underwriting review process, we learned our name is listed on XXXX due to a previous FHA loan that was included and Chapter XXXX Bankruptcy in XXXX. The claim was paid in XXXX of XXXX. 
History we had to file bankruptcy chapter XXXX in XXXX due to medical and financial. We have always been a XXXX income family and starting in XXXX our situation changed to a XXXX income XXXX income family. My wife health problems started ( XXXX ) my son is XXXX years old today he was born with XXXX. During XXXX both my son and wife underwent a serious ups and downs with their health that critically affected our family. In addition, the financial situation we are experiencing critical health issues regarding my son and my wife. Their quality of health seriously declined causing us to visit doctors and hospital frequently. In addition to our medical situation we made the mistake of using credit cards and other credit means to pay for medical, travel and cover some of the financial shortfall due to missing income. All of this combined placed us in a financial nightmare that we could not get out off. 
Per the advice of our lawyer we filed chapter XXXX bankruptcy. The Bankruptcy was discharged in XXXX XXXX which included the house. 
Moving time forward to today we applied for a mortgage from Wells Fargo at first steps everything was golden ( credit, down payment, job, etc. ) they indicated there should not be a problem. After a week the underwriter came back and said our name is in XXXX which in turn Wells Fargo can not approve our mortgage. We asked why and they said FHA/HUD would not approve a loan with the person name in XXXX. We asked is this a Wells Fargo XXXX and they said no its FHA and XXXX. We believe we are unjustifiably being target by Wells Fargo. They do not want to research this further and do not want to try maybe due to our family name being XXXX. HUD and XXXX have specific rules and exception to the rules based on BK and Foreclosure in the same mortgage. In particular a few sections listed below HUD handbook states on Handbook XXXX : XXXX. 
HUD handbook states on Handbook XXXX : XXXX. 
XXXX - XXXX After reviewing the information from the HUD handbook and mortgage letter and taking into consideration that it 's been almost 4 years we have reestablished our credit, we meet all the proposed requirements that we were aware off so we are not sure why we would not qualify for the mortgage. 
The week Wells Fargo turned us down we called HUD 4 times multiple times at Telephone : and spoke with XXXX, XXXX, XXXX and XXXX. They been all very helpful. All the information provided narrows things to their own verbiage indicated that if a borrow experience hardship or extenuating circumstances there are exceptions and they may be able to qualify for an FHA loan as long as they meeting all other requirements. We meet all the requirements to qualify for an FHA loan. However, we can not get Wells Fargo to even look at the case further and they keep saying that the documents from FHA and XXXX are incorrect. We are requesting some detail advice on what to do. We feel that Wells Fargo may be discriminating and not wanting to go the extra mile due to our last name being XXXX. We are not sure what else we can do we have provided them with all our paperwork, discharge, etc. and they were so positive and once the underwriter got a hold of the paperwork we were dismissed as if we do not matter. We have our bank account with Wells Fargo, my retirement account with Wells Fargo that is why we are surprised that they dismissed our case so quickly.

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