Consumer complaint received 2022-02-02
Company: WELLS FARGO & COMPANY
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I have been a customer of XXXX since the mid XXXX 's and this is my first loan I have ever closed with XXXX. I recently closed my mortgage loan with Wells Fargo bank and the note rate on the promissory note did not match my lock confirmation. During my loan origination process, XXXX marketed to me that for every $ 250K I moved in assets and cash to XXXX, I would could get a 0.125 % discount to my rate. When I closed, my loan documents had a different rate than my lock confirmation. When I pointed this out and requested a redraw 4 days prior to the closing, XXXX said it was too late and they would close my loan with the wrong rate. 

Timeline : 1 ) I moved {$500000.00} in cash and assets over to Wells Fargo on XX/XX/XXXX in order to obtain a 0.25 % reduction in rate as per a marketing flyer I received from XXXX. 
2 ) I received an updated lock confirmation on XX/XX/XXXX with the lower rate of 2.875 % versus my original locked rate of 3.125 %. 
3 ) On XX/XX/XXXX @ XXXX XXXX XXXX, I executed closing documents. I reviewed the CD and the majority of the information on the CD was correct except the prepaid interest. XXXX has charged me for one day of interest, but I should have received an interest credit since my funding date was moved out to XX/XX/XXXX instead of XX/XX/XXXX. XXXX said per the Closer the interest amount would be refunded once the loan goes to post closing XXXX and we could fund with incorrect CD. The difference was less than a couple of hundred dollars and so I said fine. 
4 ) Right after the mobile notary left my house around XXXX XXXX XXXX, I started looking through the loan documents and noticed the note rate on the 1st page of the Note was incorrect and reflected 3.125 %. I was only given the last page of the note to sign and I know I should have reviewed it, but I did not which is completely my bad. However I would have also expected the lender to honor the rate lock. 
5 ) I called my mortgage broker XXXX immediately on XX/XX/XXXX and notified him of the error. Since my closing took place so late, it was too late for XXXX to contact anyone to figure out what I should do. I told XXXX that in my opinion I would most likely need to redraw, but only a small subset of the documents. I was told by XXXX that he would get back to me first thing Monday morning. 
6 ) I spoke with XXXX on Monday XX/XX/XXXX and he told me that per the Closer, there was no need to redraw as long as the CD has the correct note rate on it. I told XXXX that really seemed wrong and because if I ever defaulted on the loan, XXXX would bring to court the promissory note and not the CD. He assured me the Closer told him we were good to move forward, but he would check with his manager. 
7 ) On XX/XX/XXXX, in good faith and to ensure I did not lose my home due to this error, I sent in the cash-to-close, but I spoke with XXXX and told him that I do not feel comfortable having an executed note with the wrong rate out there. I feel that it is more than reasonable for XXXX to send me a blank note, with a return mailing label. I will execute the blank note, but once XXXX gets the corrected note back, I would like XXXX to return the original executed 3.125 % note back so I can destroy it myself. He said he would talk to his manager and get back to me. 
8 ) On XX/XX/XXXX, I received a call from XXXX and per XXXX legal department the loan has to be closed with the wrong note and the wrong monthly payment amount. I asked XXXX how they could do that when the higher note rate would require a different cash to close, but then I realized that XXXX already had too much funds from me since they had knowingly charged me for too much interest. Per XXXX escrow had already balanced with XXXX and the XXXX  was sent for recording. 

I feel that XXXX has BAIT AND SWITCHED me as I have an updated rate lock showing 2.875 %, but my loan documents reflected 3.125 %. I also experienced DECEPTIVE MARKETING where they told me that moving {$500000.00} in funds would reduce my rate and then after moving {$500000.00} to XXXX, my expected note rate discount was never reflected on my actual loan documents. 

This needs to be resolved ASAP and I want to know what the timeline for the resolution is and all the steps XXXX will take to resolve the issue.

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 non-monetary relief