Consumer complaint received 2020-05-08
Company: WELLS FARGO & COMPANY
State: SC
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
XXXX Disclaimer : I am an employee for this bank but am presenting the follow as a consumer of Wells Fargo Mortgage via a VA XXXX There are 3 items that I believe were erroneously commented by Wells Fargo Mortgage that almost caused a veteran and his family to be homeless during a pandemic.The 3 items are : 1 ) Delayed appraisal causing closing date to be moved. ( Bank error/process failure ) 2 ) Denied emergency waiver of 3 day rule 3 ) Continuously having the VA presented as being a burden Details follow On XX/XX/2020, I went under contract to buy a new home with a closing date of XX/XX/XXXX. It was imperative the we close on the same day as our residence at the time was to be sold same day. During the underwriting process, I was asked to provided multiple documents as well as many request. I was told multiple times that the extra request was due to VA loan requirements. It began to feel as if the VA loan was a burden on me. This should never be the case. The veteran should not feel like a VA loan is a burden for them to use. It is a privilege to use the VA loan that I had to serve and sacrifice to earn. As the loan process progress, I was told multiple times that the close date my have to be moved due to 3 day rule. On XX/XX/XXXX, the appraisal was completed by we were waiting on it to come in from the appraisal company. It did not come in until XX/XX/XXXX, 4 days before close. Turns out the appraisal company did not receive the request until XX/XX/XXXX. Wells Fargo informed me it was ordered on XX/XX/XXXX, so for over XXXX weeks, the appraisal sat somewhere. I spoke to a XXXX with Wells Fargo Mortgage, XXXX XXXX, who explained that they should have never held the appraisal and that they did so awaiting new guidance from VA. They should have proceeded and then update when new guidance came in. Well, the appraisal had an issue of being on a private road. Wells Fargo was requiring a maintenance agreement. After much round around, I found the needed documents myself and forwarded to Wells Fargo. Due to being less then 3 days to closing, Wells Fargo pushed my close date to the following Monday, effectively leaving my family homeless during the weekend. I asked to escalate and apply for a waiver of the 3 day rule. The following was my letter requesting a waiver. 

I, XXXX XXXX XXXX, am requesting a waiver of the 3 day closure rule after receiving the Closing Disclosure due to the following : It is absolutely imperative that my loan request for the property of XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX close on XX/XX/2020. I am to sell and vacant my current home of XXXX XXXX XXXX XXXX XXXX XXXX, SC the morning of XX/XX/XXXX. 2020. If we were unable to close the same day on the new residence it would cause an unnecessary financial and health risk to my family. We would have no place to go and due to current COVID 19 restrictions, hotels are limited and restricted by XXXX XXXX  XXXX XXXX XXXX orders. Also, the only family that we have within reasonable distance are elderly and vulnerable for infection. Due to underlying disabilities due to military service, I am also considered to be high risk and need to minimize contact to prevent infection. If I or someone in my family were to contract COVID -19 it would cause an extreme financial burden. If there was temporary living to be bought it would also heighten the exposure risk. Moving the loan close date would add a financial burden due to delay and extended moving expenses, utilities, extra rent on storage unit set to expire XX/XX/XXXX, and multiple other expenses. If this loan does not close same day on XX/XX/XXXX, I and my family, to include my XXXX XXXX XXXX son and XXXX XXXX XXXX daughter would be effectively homeless during a pandemic. 

With less then XXXX hours to closing on XX/XX/XXXX, I was informed that Wells Fargo XXXX denied our request with only a reasoning saying " XXXX ''. If this was not an emergency then what is? 

In full panic mode, we tried to find somewhere to stay but due to Covid 19 pandemic, options were extremely limited. A miracle then happened. The sellers of the house we are buying allowed us to move in BEFORE closing. This is unheard of. If it were not for them, Wells Fargo would have made us homeless. A veteran, employee of Wells Fargo during a pandemic ... .. 

I filed a complaint with Wells Fargo but after speaking with a XXXX XXXX in the executive office, I feel they are trying to distance themselves from any wrong doing. Blaming the delayed appraisal on Covid and again blaming the VA ... .... Prior to my banking career, I spent many years as a detective interviewing many people. I can easily tell that Wells Fargo was looking to pass the blame and minimize their mistakes. 

It is my belief that the process failures here were multiple and caused a lot of undue stress to my family and I. It makes it even worse to have this experience as a XXXX XXXX of Wells Fargo. I do not want another veteran to have to experience such incompetence when dealing with a VA loan. I will provide emails and documents.

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