Consumer complaint received 2018-05-02
Company: WELLS FARGO & COMPANY
State: MO
Product: Mortgage
Sub-product: Reverse mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I entered into a reverse mortgage with Wells Fargo Mortgage on XX/XX/XXXX. I then became concerned about the terms and conditions and contacted a friend who was versed in mortgage procedures. He had advised me of some terms and conditions that I was unaware of and then contacted your office regarding this information. The following are the findings : It should be noted that my monthly income at the time was {$500.00}. 
Analysis of XXXX XXXX Wells Fargo Reverse Mortgage Estimated Amortization Table 1. Even though you got one lump sum of money, you are paying {$30.00} per month, {$360.00} per year in service fees for the privilege of receiving the money. This added to your debt each year. 
2. Over the last thirteen years, you have been assessed {$4600.00} in service fees. 
3. It shows that you received {$54000.00} initially. You advised me that you received {$23000.00}. The difference of {$31000.00} are fees and various charges. 
4. This loan is scheduled to go 34 years. By that time, you will owe {$390000.00} for a {$23000.00} loan. Your children will have to pay that amount to keep the house. They will have to come up with the money within six months. 
Page 1 Home Equity Conversion Agreement Second Deed of Trust 1. This is an adjustable rate mortgage. It goes up and down depending on the consumer price index. 
2. If you live until XXXX, the house will belong to the Mortgage Company. ( Age XXXX ) Uniform Residential Loan Application It says you borrowed {$72000.00}. Where is the {$49000.00} difference? 
Federal Truth in lending loan disclosure 1. The loan is immediately due upon your death. 
2. XXXX is not part of the loan. He will be put out upon your death. 
3. If you are not living in your residence for some reason, after 12 months, you lose the house. 
4. If the house is in disrepair, the loan becomes immediately due. 
Recommendations File a complaint of predatory lending with the Consumer Financial Protection Bureau. ( CFPB ). 
I have prepared a letter for you to sign and mail to the CFPB Ombudsman. I have included and highlighted information on filing a complaint. 










To : Ombudsman Consumer Financial Protection Bureau From : XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Mo. XXXX Re : Request assistance for filing a predatory loan complaint XX/XX/XXXX  Dear Sir or Madam, I had some concerns about a reverse mortgage {$23000.00} loan from Wells Fargo Mortgage 13 years ago. I contacted XXXX XXXX a Fraud Investigator I am associated with and asked him to review my paper work. 
His analysis showed some very disturbing things I was unaware of and were not explained at the time I signed for the loan. His findings are attached to this letter. I would like to have Consumer Financial Protection Bureau consider assisting me in filing a predatory loan complaint. 
In summary a loan for {$23000.00} will cost me over {$110000.00} today. This is not fair and in my opinion is predatory. I am seeking a solution to get out of this loan and keep ownership of the residence I have spent a great part of my life in. 
Sincerely, XXXX XXXX ( XXXX ) XXXX E mail XXXX XXXX XXXX XXXX ( XXXX ) XXXX E-mail XXXX XXXX

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