Consumer complaint received 2018-05-21
Company: WELLS FARGO & COMPANY
State: IN
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
My Name is XXXX XXXX bringing forth this complaint against XXXX XXXX, XXXX XXXX securing the deed of trust of my property located at XXXX XXXX XXXX XXXX, IN XXXX ( Subject Property ) Wells-Fargo has engaged in egregious misconduct and fraudulent activity inducing the foreclosure of the Subject Property.. 
# 1 ) Per HUD regulation 24 CFR 203.604, contact with the mortgagor, provides that " the mortgagee must have a face-to-face meeting with the mortgagor, or make a reasonable effort to arrange such a meeting, before three full monthly installments due on the mortgage are unpaid. '' Since the loan is insured by the FHA, this regulation applies, as well as the liability reporting valid information to HUD/FHA. It is clear that violations of the False Claims Act ( FCA ), 31 USC 3729 - 3733, since they knowingly withheld information and reported false records to a Federal Government Agency.

# 2 ) Per Ind. Code 32-30-10.5 et seq, borrowers in Indiana may request a settlement conference, which is a face-to-face meeting with the lender to work out a foreclosure prevention agreement. Moreover, prior to the start of the foreclosure, the lender must send the borrowers a pre-suit letter at least 30 days before filing the case in court. This is a form letter that was created by the Indiana Housing and Community Development Authority, which will include the following : ( a ) a statement that the borrowers are in default. ( b ) a statement that the borrowers are encouraged to obtain assistance from a mortgage foreclosure counselor. ( c ) a statement of the borrowers rights if the lender obtains a foreclosure judgment ( for example, the right to appeal a finding of abandonment and the right to redeem the real estate ). ( d ) Contact information for the Indiana Foreclosure Prevention Network, and ( e ) a warning about foreclosure scams purporting to save your home. Wells-Fargo Bank never sent Defendant a pre-suit letter as required by Indiana law. Additionally, Defendant has not had the opportunity to participate in a settlement conference with Wells-Fargo Bank.Since the FHA is the investor and insures the loan, they would be issuing a partial claim to help fund the loan modification. Since the FHA is unaware of the partial claim, they were clearly in the dark on the loan modification process. Wells Fargo is in clear violation of the False Claims Act ( FCA ), 31 USC 3729 - 3733, since they knowingly withheld information and reported false records to a Federal Government Agency. Wells Fargo also has an obligation to process the loan modification with transparency and clarity per the National Mortgage Settlement of XX/XX/XXXX. Wells Fargo has refused to cooperate and has set a foreclosure sale date XX/XX/XXXX. In fact agent ( s ) are advising me that my loan can never modified by FHA, due to whats known as a Credit Decision hard decline for modification assistance back on XX/XX/XXXX. Furthermore, Wells Fargo, has failed to respond a qualified written response by providing an incomplete answer on XX/XX/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