Consumer complaint received 2017-09-29
Company: WELLS FARGO & COMPANY
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I would like to enlist your help in having Wells Fargo address a concern I have with the way they handled my recent mortgage application. I ultimately closed on my new home with another bank, however Wells Fargo 's negligence in providing me with important information about their mortgage products caused me to miss my required closing date and forced me to pay a penalty to the seller of {$2100.00}. 

After researching which banks were the most recommended for new homeowner loans, I learned that my bank of XXXX decades ( Wells Fargo ) was among the best at handling first time mortgages. My initial consultations were frustrating, later also learning that the advise given to me by the Wells Fargo agent to represent myself as a cash buyer were not recommended or ethical protocol ( as per my real estate agent ). After requesting, and being assigned a new mortgage agent at Wells Fargo, I proceeded to search for an apartment and start the application process. 

With a solid credit rating over XXXX and strong financial history, Wells Fargo assured me I was the " ideal candidate '' for a mortgage and that I would have nothing to worry about in their hands. 

When I found an apartment in a newly constructed building and received the deal points from the seller in early XXXX 2017, I shared the information and key contingencies with the mortgage agent. I specifically requested that Wells Fargo identify any risk as it relates to the Wells Fargo mortgage products being considered. None were identified ( noted in email exchanges attached ) and so I signed a contract, which among other things specifically required that I close within 30 days of the building receiving the certificate of occupancy. The mortgage agent from Wells Fargo was well informed that the building was new, how many apartments it contained, that I was among the first to sign a contract in the building, and that I would be doing a 15 % down payment on the property. Wells Fargo also provided me with a commitment letter for the loan amount required. 

The building received the certificate of occupancy around XXXX XXXX 2017 and this was immediately shared with Wells Fargo. On XXXX XXXX, I received a call from my mortgage agent indicating that I could not close unless I had 20 % to put down. I was irate because Wells Fargo knew my limit was 15 % on this property. When I pushed the agent on why they were seeking 20 % now I was told it was because the building was not 50 % owner occupied, a stipulation for Wells Fargo to sell my mortgage off to XXXX XXXX XXXX. This information however was never shared with me in early XXXX 2017 when asked of Wells Fargo to identify any risk with their mortgage products and before I signed a contract with the seller. 

I did not know that Wells Fargo had lined me up for a XXXX XXXX XXXX loan during the mortgage application process, nor did they ever go into detail on the various product options they had to work with at Wells Fargo. They simply assured me that a mortgage was possible and that I was a perfect candidate. 

I have since been told that any properly trained and ethically driven mortgage agent should know about the 50 % owner occupancy requirement in XXXX for new construction buildings and loans being sold off to XXXX XXXX XXXX. Although I asked specifically for this type of information to be shared with me in XXXX 2017 when asking about any risk related to the Wells Fargo mortgage products, the agent I was assigned by Wells Fargo chose not to be transparent. I have not received any clear explanation why and Wells Fargo has actually insisted that they are not required to share this type of information, or other detailed information about their mortgage products and processes with consumers. 

I challenged Wells Fargo over the ignorance or negligence of the agent who did not highlight this issue earlier in the process, and more importantly only 2 weeks before my required close date so that I could have reacted accordingly. Not only did the agents actions put my deposit at risk, but it defied all efforts made on my part to seek such important information during the process. Wells Fargo has refused to accept they have done anything wrong and they have even suggested that they are not required to share the information I was seeking. 

My simple request of Wells Fargo was to cover off on the penalty fee I was required to pay to the seller for closing late, however Wells Fargo has twice refused to do this even after I wrote directly to the Wells Fargo XXXX XXXX XXXX. They insist their practices are fine and that their policies protect them from such consumer concerns or actions against their mortgage agents. I find this practice to be incredibly unethical, especially for first time homeowners who are as diligent, inquisitive and detailed as I was throughout the entire process. 

As a point of note, I did secure a mortgage, and close with another bank within 21 days ( start to finish ) of Wells Fargo informing me of this issue, however I feel compelled to speak out and seek resolution on behalf of myself and the millions of new homeowners who may encounter similar harmful policies and practices from the big banks.
I hope you can assist in approaching Wells Fargo to get compensation for the penalty fee I paid, and highlight a flaw in their policies and practices that leave consumers very vulnerable.

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