Consumer complaint received 2021-08-06
Company: WELLS FARGO & COMPANY
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
XXXX. WHAT IS THE COMPLAINT ABOUT? 

The complaint concerns Wells Fargo Home Mortgages process for refinancing a home mortgage loan on my primary residence. Wells Fargo holds the current mortgage on my primary residence at a high interest rate for a term of 30 years. I thought that the refinancing of my mortgage would be easier if I continued with Wells Fargo. However, once I started the refinance process at a lower interest rate with a term of 15 years, it became evident that Wells Fargo had commenced to complicate my refinance loan application and to discourage me from completing the refinancing of my primary residence. 

Despite having an excellent credit score, a good income source, and financial resources, I contend that I was unfairly treated because of the following : 1 ) As an existing customer of Wells Fargo, it may be more advantageous for Wells Fargo if I were to maintain my 30 year, high interest mortgage loan instead of refinancing a new 15 year mortgage with a lower interest rate. 

2 ) Wells Fargo used their XXXX survey to unfairly treat me. I completed this survey because it stated that by providing the requested information it would not be used to hamper the processing and approval of my refinance home mortgage loan ; however, this did not prove to be the case. 


2. WHAT TYPE OF PROBLEMS ARE YOU HAVING? 

The problem is that I had to cancel my refinancing loan application despite the fact that I was able to lock in on a very low interest rate for a 15 year mortgage loan and had received the loan approval. However, Wells Fargo made it very difficult and stressful for me to fulfill all of their requirements and conditions prior to closing on the loan. 

Basically, Wells Fargo made repeated requests for documentation that I had already previously submitted and made requests for new documents that were impossible to produce. Additionally, extreme pressure was applied because all of the documentation requests came with unreasonable time constraints. Wells Fargo used excessive documentation as a method to delay and to hamper me from ever going to closing on my refinance home mortgage loan. In summary, I believe that Wells Fargo actions created a very hostile environment, which contributed to me having no other choice but to terminate my loan application prior to closing. 


3. WHAT HAPPENED? 

On XX/XX/XXXX, I signed a Notice of Intent to Proceed, which gave Well Fargo Home Mortgage permission to move forward on the processing of my refinance loan application. From JXXXX XXXX  XX/XX/XXXX thru XX/XX/XXXX, Wells Fargo requested over 20 documents related to the processing of my loan application, which I provided timely while under pressure to meet strict time frames. 

On XX/XX/XXXX, Wells Fargo requested 11 additional documents despite me having submitted over 20 documents previously. My major problem with meeting their documentation requests commenced when it became evident that Wells Fargo requests were excessive, repetitive, and not relevant to my ability to finance a new loan. The following are examples of some of their punitive documentation requests, which were very stressful and unreasonable : A. Document Request : Provide a current mortgage loan statement for my rental property. 
PROBLEM : I have been requested three times to provide the mortgage loan statement for my rental property, which is co-owned with my brother. The first time I submitted the requested mortgage loan statement for my rental property was on XX/XX/XXXX, it was not recent enough. On XX/XX/XXXX, I resubmitted the requested statement for XX/XX/XXXX ( the most current ). Then on XX/XX/XXXX, Wells Fargo requested this document a third time, this time they wanted the XX/XX/XXXX statement, which was impossible to provide, since this statement had not yet been generated by the bank. I was told that the loan statement for XX/XX/XXXX was needed because my refinance loan would not close until XX/XX/XXXX. Apparently between XX/XX/XXXX and XX/XX/XXXX, Wells Fargo expects that something was going to change with respect to my ability to make the mortgage payment on the rental property. ( Harassment - repetitive and unreasonable requests from Wells Fargo. My rental property should not be a factor in the refinancing of my primary residence mortgage loan ) B. Document RequesXXXX : Provide a recent bank statement showing my monthly gross Pension Income. 
PROBLEM : On XX/XX/XXXX and XX/XX/XXXX, I provided three supporting documents pertaining to my pension income. I submitted OPMs Notice of Annuity for XXXX ( which provides my Gross and Net Income ) ; Form 1099R Statement of Annuity Paid for XXXX ; and IRS 1040 - XXXX Income Tax Return. All three documents would verify my pension income. On XX/XX/XXXX, Wells Fargo requested that I provide a recent bank statement which would reflect my gross income. This request is impossible because my bank statement will only show my net income. But I had already provided excellent support documentation regarding my pension income. ( Petty and vindictive request from Wells Fargo since I have fully demonstrated that my income is sufficient to handle this new loan ) C. Document Request : Provide Income Tax Returns ( IRS 1040 ) for the most recent two years that shows my rental income. 
PROBLEM : On XX/XX/XXXX and XX/XX/XXXX, I provided three supporting documents pertaining to my rental income. I submitted IRS 1040 - XXXX Income Tax Return with all the schedules ; Form 1099-Misc for XXXX Rental Income ; and, Form 1040 -Schedule E - XXXX Supplemental Income and Loss. All three documents would verify my rental income. On XX/XX/XXXX, Wells Fargo requested that I resubmit my IRS 1040 Income Tax Return with all schedules for XXXX as well as for XXXX. ( Harassment - repetitive and unreasonable requests from Wells Fargo. My rental income should not be a factor in the refinancing of my primary residence mortgage loan ) D. Document Request : Provide Lease Agreement for my rental property showing monthly rent. 
PROBLEM : On XX/XX/XXXX, Wells Fargo made a request for the Lease Agreement to verify monthly rent for my rental property. I did not provide the lease agreement. ( Excessive and unreasonable request from Wells Fargo. My rental income should not be a factor in the refinancing of my primary residence mortgage loan ) E. Document Request : Provide a letter of explanation for address variances, confirm if I have any ownership in the properties. 
PROBLEM : On XX/XX/XXXX, Wells Fargo requested a letter from me stating that I did not have any ownership in my brothers primary residence and my P.O. Box mailing address. My brothers address is included on the rental property documentation because we are co-owners. Despite having previously explained this to Wells Fargo, the bank still requested additional documentation. Additionally, I explained that all my mail is not delivered to my primary residence but to a P.O. Box mailing address, Wells Fargo requested that I verify that I had no ownership in the US Postal Service. ( Harassment - unreasonable and vindictive request from Wells Fargo ) F. Document Request : Provide Homeowner Association documentation that shows the amount and and frequency of my HOA dues for my primary residence and rental property. 
PROBLEM : In my initial application, I provided information about my HOA dues. It is very stressful and labor intensive for me to contact the proper HOA representatives, who would provide documentation on the HOA dues related to my specific properties. Payments of $ XXXXmonth and $ XXXXmonth in HOA fees should never be a factor in determining if I am at risk of defaulting on a loan. I have never been late paying a bill in my life. ( Harassment - undue hardship, stressful, and unreasonable request from Wells Fargo ) 4. WHAT COMPANY IS THIS COMPLAINT ABOUT? 

Wells Fargo Home Mortgage, XXXX XXXX XXXX, XXXX XXXX, Texas, XXXX 5. WHO ARE YOU SUBMITTING THIS COMPLAINT FOR? 

Myself

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