Consumer complaint received 2018-02-28
Company: WELLS FARGO & COMPANY
State: NY
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Getting the loan

Complaint:
Contacts at Well Fargo XXXX Branch Manager : XXXX XXXX ( XXXX ) XXXX Executive Resolution Specialist : XXXX XXXX ( XXXX ) XXXX-xt XXXX I am writing in complaint of my dealings this past fall with Wells Fargo Bank on acquiring a home equity loan from this bank. The following are the facts of what transpired. 
A. I purchased my home at XXXX XXXX XXXX. XXXX NY in XX/XX/XXXX for a purchase price of {$420000.00}. I was given the mortgage from Wells Fargo. 
B. In XX/XX/XXXX I noticed that my roof was beginning to leak and needed replacement including all plywood underneath the shingles. I asked for several estimates and found out I needed between $ XXXX {$35000.00} to have the roof replaced. I could not go through the winter with the roof in its current condition and reserved a contractor for XX/XX/XXXX to do the work and proceeded to go about getting the financing via a home equity loan. The first place I went to was the bank I currently have my mortgage with Wells Fargo. I wanted to not only get the roof done but also some windows replaced so I decided to apply for {$50000.00}. 
C. XXXX met with the XXXX NY branch manger of the Wells Fargo Bank, XXXX XXXX to begin the process on XX/XX/XXXX. While going over my finances it was shown that my credit was outstanding and my debt to equity ratio was good. I had an appraisal done on the home in XX/XX/XXXX just prior to my closing where the house was appraised at {$520000.00} resulting in the fact that just in a years time my house increased in value over {$100000.00}. ( appraisal available if needed ). 
D. After XXXX got all my financial information he called me back into the bank the following day to go over my options. He placed me on a conference call with one of the Wells Fargo loan officers who told me that I could not apply for a home equity loan as I had not owned the house for quite a year yet ( I was a few days off ). I was told that the home equity application looked fine, but the process could take anywhere from 30-60 days to process. I told the bank officers that I had to get the money sooner as I wanted to get the roof repaired before XXXX. They suggested that since I had {$200000.00} in equity in my home as well as outstanding credit that I should take a personal loan out for the money and pay it off as soon as the home equity loan was approved. I told them to go ahead with both processs ( home equity and the personal loans ). 
E. I received {$31000.00} dollars in personal loans from Wells Fargo. It consisted of a combination of a personal loan ( {$22000.00} ) and a Wells Fargo interest free credit card for {$9000.00} totaling {$31000.00}. I was approved and given the funds immediately on XX/XX/XXXX. 
F. The contractor started on the roof the second week in XXXX and the work was being conducted when the Wells Fargo real estate appraiser came out for the home equity loan. She did the appraisal noting in her appraisal that the roof was under construction. Her appraisal of my home came in at {$620000.00}. I was at this point very pleased as was XXXX at the bank. Everything was going smoothly. 
G. About a week later XXXX called me to tell that as per bank procedures they needed to send out another appraiser to just check and make sure that the roof was completed. I saw no reason for this but was not opposed to it, so I decided for the appraiser to come to the house.

H. I left work early to meet the appraiser on XX/XX/XXXX and was surprised to find out that the person they sent out was not a New York State Licensed Appraiser, but a real estate agent named XXXX XXXX who is an employee of XXXX XXXX in XXXX NY. XXXX XXXX is not a licensed NY Appraiser. She informed me that she needed to inspect the entire house. I challenged her on why this was necessary and that the bank specifically told me that she was only to inspect the roof. XXXX XXXX showed me her work order so I reluctantly let her go through my home. 
I. I received a phone call a few days later from Wells Fargo manager XXXX XXXX, stating that the XX/XX/XXXX appraisal came in for much less than the previous months appraisal did, so I would not be able to get the {$50000.00} as anticipated only {$30000.00}. He also stated that we could not close until I address two issues that were found to be on the report. Unbelievably the 2 issues that needed to be addressed was to replace an outdoor deck step that had a little rotting and the other was a missing light switch plate. I immediately repaired these 2-serious issues, so we could proceed. 
J. My closing date was scheduled for XX/XX/XXXX when just prior to my closing XXXX XXXX ( the branch manager ) called me to tell me that my equity loan was declined. He put me on the phone with a XXXX XXXX who explained to me that the combination of the low cost of the last appraisal of {$51000.00} and my taken out of the personal loan the month before ( which Wells Fargo suggested I do ) put my debt to equity ratio at 43 %, which they did not feel comfortable with. I feel they bank totally mislead me and what they have done is unethical and bordering on criminal. I received my final rejection notice from XXXX XXXX and these are the questions I would like to have better answered. 
1. The banks assertion that they could not give me the equity loan because of the {$31000.00} loan that they advised me to take at 13 % interest the prior month. They knew all along that I was going to use the home equity loan to pay off the personal loans, even advising me to take this course of action. I feel as if Wells Fargo rejected my home equity loan to keep me locked into their high interest personal loan. 
2. The first appraiser who came out to my house appraised my house at $ XXXX more than sufficient equity to get my initial request of {$50000.00} in home equity. They told me they needed to send a second appraiser out just to look at the roof to make sure it was completed. They sent a second person out to evaluate my home who supplied them with a Residential Evaluation at a much lower assessment. Her comparative sales analysis is in no way comparative to my home. Why was the first appraisal rejected in my loan process? I also question why the bank relied on the evaluation provided to them from a real estate agent rather than a certified licensed New York State Appraiser. How can her appraisal of my home have any credential in their decision when she is not a licensed appraiser? Why was my first appraisal done by a certified licensed appraiser totally disregarded in my equity loan process.

3. I feel Wells Fargo mislead me and once they got me into the high interest personal loan had no intention of fulfilling the home equity loan. Not once while I was getting this personal loan was the debt to equity ratio increase brought up as an issue towards my home equity loan. I feel Wells Fargo practices in handling my loan is inappropriately and unethical. I would like you to investigate this business transaction. I have all the paperwork need to back my claims.

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