Consumer complaint received 2016-11-04
Company: WELLS FARGO & COMPANY
State: CA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Credit decision / Underwriting

Complaint:
We chose Wells Fargo Bank to be our home mortgage lender because of our trusted relationship with the bank. The bank has not properly addressed our fiduciary needs and has been negligent throughout our mortgage loan application. 

Timeline of Loan Application Received a pre-approval letter from Wells Fargo on XXXX/XXXX/16 and then made an offer on a home and had an executed contract on XXXX/XXXX/16, with a closing date of XXXX/XXXX/16. On XXXX/XXXX/16, Paid {$510.00} to Wells Fargo, covering the loan application fee and the cost of an appraisal. Underwriting questions were answered on XXXX/XXXX/16 and an update was promised to be given that same day. No other requests were made by Wells Fargo the following three weeks, with the loan applicant calling to check on the loan one week before closing date. On XXXX/XXXX/16 the loan application was transferred from the jumbo loan to the conventional loan department and a purchase contract extension was required because Wells Fargo was taking too long. Wells Fargo could not provide the needed lender confirmation requested by the seller so we were forced to go with another lender. We completed an application with another lender on XXXX/XXXX/16 and had approval from that lender by XXXX/XXXX/16. Also on XXXX/XXXX/16 we received the commitment letter from Wells Fargo. Based on the negligence we had seen by Wells Fargo, we decided to not move forward with the loan application with Wells Fargo, so we cancelled our loan application with Wells Fargo on XXXX/XXXX/16. We closed a purchase loan with another lender on XXXX/XXXX/16. Then in XXXX received a letter from Wells Fargo dated XXXX/XXXX/16 that our loan was being denied because we lacked the required funds to close. 
An internal complaint with Wells Fargo was made on XXXX/XXXX/16 with the Wells Fargo customer resolution group. But this group kept filing two week extensions and a resolution letter was not sent until XXXX XXXX, 2016 with no resolution provided. The bank only advised that they would train their team members better going forward. 
We have requested a refund of our fees of {$510.00}, because the bank did not communicate with us for three weeks during our contract period and almost cost us {$25000.00} in earnest money. We were forced to find another lender and pay a new appraisal fee so that the seller would grant us an extension on the purchase contract. We did not trust Wells Fargo 's ability to provide the requested loan because of their lack of communication internally and externally thus far. 
COMPLAINTS 1. Negligent Timing, based on our purchase contract dates and obligations. Almost lost the house because of the delay of closing. Had to engage another lender and pay for a new appraisal and start the process all over with another lender. 
2. Miscalculation of DTI, which was including debts that had already been paid off. 
3. Conflicting Information provided to Loan Applicant, Wells Fargo employee stated that DTI ratio was not used to determine rate, but then a Wells Fargo loan pricing disclosure stated that the DTI ratio is one of several factors used to determine pricing. 
4. Lack of communication from Wells Fargo from XXXX XXXX to XXXX XXXX. Loan applicant was making all the calls to check on the loan. Then on XXXX/XXXX/16 the employees with Wells Fargo were not able to really advise well at all and did not understand what underwriting conclusions were being made. 
5. Information was lost when the loan was transferred from jumbo to conventional. 
6. No management response to complaints being made. Calls were made to the following upper management with no call backs : XXXX XXXX, XXXX XXXX ( did not call us while XXXX XXXX was on a week long vacation ), and 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