Consumer complaint received 2018-11-05
Company: WELLS FARGO & COMPANY
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/XXXX : Received an Escrow Review Statement ( ERS ) from Wells Fargo Home Mortgage ( WFHM ) dated XX/XX/XXXX advising of a {$1500.00} escrow shortage ; if shortage was paid over 12 months the monthly payment would increase from {$830.00} to {$970.00}. After analyzing the ERS and checking our homeowners insurance and banking records, I discovered the source of the escrow shortage. In XX/XX/XXXX, we changed homeowners insurance companies, and a {$1400.00} reimbursement check from the old carrier that was paid to WFHM was not applied to our mortgage loans escrow account as directed. After several calls, a WFHM representative confirmed this ( 4+ months after the fact ). 
XX/XX/XXXX : Spoke to 2 WFHM reps by phone ; the second rep ( a lady named XXXX in Escrow ) assured me that what she termed a reversal would be performed, and I would be notified by XX/XX/XXXX. I received no contact from WFHM regarding a reversal or any other type of resolution. 
XX/XX/XXXX : Called WFHM to make my XX/XX/XXXX mortgage loan payment ( I am in active Chapter XXXX Bankruptcy, so online payments are not allowed ) ; a rep named XXXX advised that the correct amount was {$850.00} ( which I paid ), and that the amount would be {$840.00} starting with the next ( XX/XX/XXXX ) payment. 
XX/XX/XXXX : Called WFHM and was informed that my payment amount was supposed to be {$970.00} ; when I explained to the rep that amount was incorrect because it was the result of a miscalculation on WFHMs part, I was transferred to Escrow. A male Escrow supervisor stated that they couldnt perform another escrow analysis ( or another escrow analysis couldnt go into effect ) until XX/XX/XXXX. However, he said he understood that my payment amount was supposed to be corrected, so they accepted a payment of {$840.00}. 
First week of XX/XX/XXXX : Received a {$250.00} check from WFHM ; the attached documentation identified the check as escrow refund, which ( due to the differing amounts I had been paying ) I could only presume was for overpayment of prior payments. 
XX/XX/XXXX : Called WFHM to make my XX/XX/XXXX payment, and I was informed that because I still hadnt satisfied the XX/XX/XXXX payment ( that I still owed the difference between {$970.00} and {$840.00} ), the mortgage loan payments were now in arrears. I escalated to Customer Care & Recovery and spoke to a Ms. XXXX XXXX, who advised that their group is an extension of WFHMs executive offices and is the highest possible level of escalation. Ms. XXXX gave me a case number and explained that someone would be assigned to my case within 24-48 hours, and in the meantime no payment could/would be accepted. 
XX/XX/XXXX : Called WFHM and was advised that Ms. XXXX XXXX had been assigned my case. When I spoke to her, she informed me that she had to have a Letter of Consent from my bankruptcy attorney ( or be called by him ) and that she could not speak to me about my case or my mortgage loan, and could not accept payment. 
XX/XX/XXXX : I notified my bankruptcy attorney of Ms. XXXX requirements, and provided him with her contact information. 
XX/XX/XXXX : Letter of Consent faxed from my bankruptcy attorney to WFHM. 
XX/XX/XXXX : Called WFHM Customer Care & Recovery and was told that Ms. XXXX was out of the office for some number of days ; I was then connected with Ms. XXXX XXXX, who explained that she was temporarily assigned my case in Ms. XXXX absence. Ms. XXXX advised that she was not yet familiar with my case, so I gave her a verbal history of the original errors made by WFHM and developments since ; she then asked me to allow her the rest of the day to view the Letter of Consent and case paperwork before proceeding. 
XX/XX/XXXX : Called and spoke to Ms. XXXX again ; she confirmed that the {$1400.00} had never been applied to my loans escrow account, and that she was beginning the process of tracking down where the funds were and why they hadnt been properly applied. 
XX/XX/XXXX : Called WFHM Customer Care & Recovery to follow up with Ms. XXXX, but was connected with Ms. XXXX XXXX ( back from time off ). Ms. XXXX advised that an internal investigation had been initiated to determine where the {$1400.00} in question was, and that there would be no additional information until after the investigation was completed. She stated that the deadline for the investigations completion was XX/XX/XXXX, and that I would be contacted. No contact from WFHM was forthcoming. 
XX/XX/XXXX : Called and spoke to Ms. XXXX again, and she advised me that she could not discuss my mortgage loan with me ( again ) because the Letter of Consent received from my bankruptcy attorney was not broad enough ( i.e., it only covers work-around arrangements ), and that WFHM still would not accept payment from me. The same day, I notified my bankruptcy attorney of Ms. XXXX statements and request. 
XX/XX/XXXX : Counsel representing WFHM filed a Motion for Relief from the Automatic Stay with the US Bankruptcy Court on the basis of missed payments (  beginning with the XX/XX/XXXX payment that they asserted was not fully satisfied ) XX/XX/XXXX : Received a copy of WFHMs Motion for Relief by mail at my home ; the paperwork included notice of a hearing on the motion scheduled for Thursday, XX/XX/XXXX. 

As of this date, WFHM has not made a single attempt to contact me and/or to account for : 1 ) How/why {$1400.00} in their care was not applied to my mortgage loans escrow account in XX/XX/XXXX and basically disappeared after they took possession ; 2 ) Why - even after being made aware of ( and their employees verified ) their error - WFHM refused to correct my mortgage loans escrow account and ( by extension ) the monthly payment amounts ; 3 ) How WFHM can allege that I have missed payments ( thereby defaulting on the loan agreement ) when they refused to accept payment on multiple occasions beginning XX/XX/XXXX. 

The missing {$1400.00} possibly constitutes a form of theft, and WFHMs actions since the misappropriation of those funds was exposed seems to constitute fiduciary malfeasance. The unmitigated gall of WFHM to then attempt to lift the Automatic Stay and pursue foreclosure on my familys home ( for which we have made regular mortgage payments to WFHM since XX/XX/XXXX, including a refinance ) is despicable. 
I humbly request that you investigate and hold Wells Fargo Home Mortgage accountable for their actions, including compelling them to discard their Motion for Relief and taking all steps necessary to restore my mortgage loan to good standing without any negative effect. 

Thank you very much for your attention and consideration.

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