Consumer complaint received 2018-10-19
Company: WELLS FARGO & COMPANY
State: GA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage

Complaint:
I initially called to apply for an Equity Line of Credit modification loan only on XX/XX/2016 and was then encouraged to include a modification on my Home Mortgage loan as well. I was hesitant because I was ok with my Home Motgage due to my getting an HARP adjustment 2 years prior but the loan officer assured me that I had nothing to lose because I could possibly get a reduction on both loans by filling out just one form. It was then explained on XX/XX/XXXX, that I could be approved for one loan or the other, both loans or none at all as to the possible loan outcomes. At that point in my submitting my application, it was not mentioned that one loan could be contingent upon the other if approved for both. I later received a confirmation that I was appoved for both loans in XX/XX/2016. I reviewed the Equity line of credit loan that I was appoved for and had liked the reduced interest rate granted which lowered my payments. I then examined the modification on the Home Mortgage and found that it was not good. It did not lower my interest at all but had simply extended my payments period for another 10 plus years. As a senior citizen, I'd found that the Home modification was more detramental than helpful. Hence, I immediately called to accept the modification terms on the Equity line of credit, and to decline the Home mortgage modification because it would hurt me in the long run. It was then and only then ( XX/XX/2016 ), that I was told for the first time that both loans were contingent upon the other to be accepted. I felt this was unfair, based on the fact that I was not disclosed this type of outcome before I submitted my initial application, else I would have proceeded with just the Equity modification as I initially requested. Again, the option of both loans being contingent upon the other was not disclosed which smells of foul play by the WF Bank establishment. I later opened an investigation complaint with WF, who then noted that my original call was to indeed seek a modification on my Equity line of credit only, and that I was then offered to include the Home Mortgage modification later on the call. WF also noted that they do not disclose the possibilty of having the loans be contingent upon each other and openly stated that it was there right not to disclose the contingency clause or outcome and felt it was there choice even if it lead to an unfair outcome. I again affirm that the first time that I was told that the loans would be contingent upon each other was after I filed the application and not before. It was further reviewed with me when I tried to accept the Equity line of Credit over the Home Mortgage loan modification. account XXXX and XXXX. I will attach two letters below. The First letter was in regards to my refuting the statements made in the first investigation letter that I then sent to the WF CEO XXXX XXXX. In this letter I highlighted key inaccuracies in Red Ink which were in the investigation letter which smelled of a cover up. The 2nd letter was admitted that they did not disclose the contingency outcome with both loans being approved.

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