Consumer complaint received 2018-06-14
Company: WELLS FARGO & COMPANY
State: WA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Recently I have accepted offer from XXXX in XXXX and moving to XXXX area from XXXX, XXXX. 

On XX/XX/XXXX me and my wife came to XXXX for house hunting and after couple of days signed agreement with XXXX XXXX XXXX XXXX to purchase a property in XXXX XXXX, XXXX. As part of that agreement we put {$10000.00} earnest money deposit. According to agreement, by XX/XX/XXXX we had to provide conditional loan approval with selected lender. By that date I could get my deposit money back if lender rejects loan application. 

I have contacted number of lenders to shop for mortgages. Factors for lender selection were : - Ability to provide conditional loan approval in timely manner - Competitive interest rate - Endorsement of lender by XXXX ( that should help to facilitate the process ) In Wells Fargo I was connected with department that specifically handles XXXX employees applications and loan officer was assigned. So around XX/XX/XXXX I have started a loan application with Wells Fargo. 

Loan officer collected all required information regarding my income, credit, employment, assets and I also paid {$690.00} for property appraisal. I was convinced by loan officer and loan processor that my situation is in good shape and I'm going to get financing answer by XX/XX/XXXX. 

Once loan went into processing, responsiveness of loan officer and processor dropped by factor of 10, meaning it was extremely hard to get any status of the process and any answer at all. Multiple documents that I have already sent were re-requested number of times ( which I provided again with minimum delay at the same day regardless redundant requests ). 

By XX/XX/XXXX I have started to escalate the problem, that after XX/XX/XXXX I'm risking to loose my deposit money. In response Wells Fargo asked to contact seller and to postpone due date for financing. Initial answer from seller agent was stating that " usually the seller won't do it ''. Bank didn't react and insisted on requesting extension. 

Fortunately financing due date was extended by seller till XX/XX/XXXX. 

At the same day, XX/XX/XXXX, loan officer contacted me and notified that loan is suspended by underwriter. I have mentioned that I'll prefer even negative final answer in order to be able to get back my earnest money deposit. Loan officer insisted on continuing process and promising alternative solution. 

Note : important fact is that one of sources for funding is selling of my second investment property in XXXX. Loan officer was aware of that. Also I was misled to believe that rental income of that property will be considered as part of debt-to-income ratio calculation.

For a full week the status of the process was unclear and loan officer convinced me that he is working on another solution that will be approved with no issue, however without exposing details of that solution. I was promised to receive an answer by XX/XX/XXXX, then by XX/XX/XXXX, then by XX/XX/XXXX, so multiple timeline commitments were broken. 

On Monday, XX/XX/XXXX I have started to escalate the issue insisting on getting answer. 
Finally I have received a document with new loan estimate with {$500.00} highly monthly payment and ~ {$40000.00} higher and 0.5 % higher interest rate + additional cash for rate discount points. I have asked how a loan with higher payment and higher amount would have higher chances of approval. No any explanation was given, but I was promised that this has highest chances of approval. 

By end of day I wrote an e-mail to loan officer, loan processor and their managers regarding my concerns and clearly articulating risks of loosing very significant amount of money. Additional concern was putting on loan discount points while Wells Fargo is aware I'm going to refinance that loan right after selling my investment property, because paying discount point money for just couple of month is complete waste of money. That concern did stay with no response. 

Regardless escalation e-mail no progress was made next day either, neither on XX/XX/XXXX and neither today, XX/XX/XXXX, while by EOD today I should have an answer ( either approval or rejection ), because starting tomorrow I'll loose {$10000.00} deposit if loan is not approved. 

My charges against Wells Fargo are : 1. Extreme incompetence in loan preparation and inability to raise concerns regarding some financial facts, that could change my decision about loan application.

2. Either complete ignorance or deliberate sabotage of processing in order to pass critical day where I will have no chances to go to another lender and will have to risk {$10000.00}. 
3. Intentional misleading for profit expressed in adding discount points that clearly will result in loosing money because of my plans to refinance once I'm getting funds from selling investment property 4. Regardless escalation I've got no call back, no status change, no status update, neither loan rejection or approval. I had to call them 3 times a day since XX/XX/XXXX in order to ask for status update, but no answer other " it is in rush processing '' was given. 

Today I'm put in situation that most likely I'm loosing {$10000.00}, while Wells Fargo utilizing slightest chances to get me a loan completely ignoring financial risks raised by me, because in case of approval they will get profit, but loose absolutely nothing in case of rejection, all loses are on me.

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