Consumer complaint received 2019-01-21
Company: WELLS FARGO & COMPANY
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I am writing to file a complaint against Wells Fargo Home Mortgage for their gross negligence in handling my mortgage application ( filed XX/XX/2018, Loan # XXXX. ) which resulted in me losing {$40000.00}. During my application, I specifically informed Wells Fargo ( WF ) that portion of my cash for down payment was coming from my Spouse savings account and remaining portion as a gift from my Father ( foreign funds ), and that I requested WF to let me know of any documentation required to source the funds from these two sources. I also informed WF that I filed my application more than 2 months prior to closing ( XX/XX/2018 ) to allow sufficient time for all documentation to be arranged for smooth closing. During the two months period prior to closing I repeatedly asked WF for any required documentation with no response from the loan processor at WF. Just a week prior (  XX/XX/XXXX ) to closing WF started to ask for sourcing documents for a deposit that was made into my Spouses account back in XX/XX/2018. In addition, they have asked for sourcing documents for the gift funds I received from my Father. The source of funds were monies obtained from sale of property back in XXXX for which the payments were made in cash. The cash from sale of property was deposited into my Fathers account and subsequently transferred to US. I have provided all the legitimate paperwork for sale of property in XXXX and money transfers through banks, but WF insisted that it was not sufficient to source the funds because the property was bought in cash and there is no way for them to source the cash that the purchaser used to buy the property. WF expected me to source the cash/funds of purchaser and provide his bank statements. How can I possibly do it? WF eventually denied my loan on the day of closing. Since this was a new home, the builder threatened to serve a notice of default on me, initiate liquidated damages amounting to {$70000.00} that I had already paid as a deposit at signing the contract, and cancel the contract resulting in me losing the home that we waited for 9 months to be built. To prevent this from happening, I had to secure a Portfolio loan which costed me about {$30000.00} and another {$10000.00} to refinance back into Conventional mortgage. I contacted WF customer care and recovery department and filed a complaint. WF did their internal investigation and informed me that my situation was a result of poor communicational skills and inefficiencies of the loan processer at WF and that it was dealt internally with the employee by assigning additional training. WF also informed me that WF was not responsible for my monetary loss as they were not party to the home purchase contract with the builder. WF simply washed the situation off their hands. I would like to bring to your attention : 1. Had the loan processor responded to me, I would have more time to provide the necessary documentation/alternatives for moving forward with the application. 
2. Why was there a need to source a deposit in my Spouses account that was 4 months old ( with respect to closing date ) 3. Why was the documentation requested just one week prior to closing and not sooner when WF knew of the foreign funds at the time of application and that it would take time to arrange them 4. What was the basis for WF to say that the documents I provided ( legitimate registration documents from government recording ) to source foreign funds were inadequate while I could use the same for my Portfolio loan and refinancing 5. Why WF expects me to source the cash/funds of purchaser and provide purchasers bank statements.

WF put me through an ordeal, denied my loan application and washed off the situation citing poor employee performance of the loan processor. I can not afford to seek legal help due to financial constraints and would really appreciate if you could make WF accountable for what they had done and recover the loss I incurred.

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