Consumer complaint received 2023-08-12
Company: WELLS FARGO & COMPANY
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
Wells Fargo uses deceptive lending practices to promote mortgage details that aren't good faith estimates. Wells Fargo uses harmful policies for its new construction closings to trick its prospective home buyers that they are acquiring a mortgage that is more attractive than it actually is. 

Wells Fargo states it's unable to charge customers higher property tax amounts unless they receive new documentation from the taxing authority. Yet, they were able to withhold more in escrow without a new, higher bill. This policy is clearly not federal regulation as I've closed in the past with a different lender, in the same residential community, and I was allowed to withhold more. Wells Fargo is unable to share this policy upon request and this policy does nothing but harm and hide the real costs to acquire a new home construction. Ultimately Wells Fargo fails to comprehend that any repayment of prepaid taxes made by the seller/builder is always on land alone and the bottom line is that Wells Fargo collects {$0.00} towards the home property taxes at closing for the current tax year. This only creates problems and financial hardship down the road. 

Wells Fargo also fails to reach out to the taxing authority to see what's going to happen to the property 's tax status for that year or the next. In my situation, Wells Fargo failed to find out crucial information like a special taxing district. If a customer pays 100 % closing costs, then Wells Fargo should do 100 % of the job and contact the taxing authority, especially in new construction closings. 

Wells Fargo treats new construction closings like resales and despite knowing the home sale price, appraisal value, and signed documentation for a higher monthly pulled escrow amount all prior to closing, Wells Fargo still only collected to repay on land alone. On top of that a few months after closing, a supplemental bill arrived with a higher assessed value than just land and still did nothing. Despite all of this and battling Wells Fargo for 7 months, Wells Fargo fails to comprehend how their institutional policies deceive customers and put them in difficult financial spots. 

Wells Fargo 's Executive Office lacks the competency to understand this and hides behind policies that they can't prove. They are alone on this island because even the title company raised my concern. Wells Fargo says we could have asked for a higher amount but that's false. On the morning of closing on the phone with Wells Fargo we respectfully asked for the higher cash to close but that request was denied because we were assured we were paying enough. Wells Fargo was wrong. When you ask Wells Fargo difficult questions like, how much money did I pay for property taxes in the current year on my home ( not land ) or did Wells Fargo reach out to the taxing authority to provide a best faith estimate before closing, they never answer and say it was hard to hear me over the phone then the conversation ceased. I hope my message is loud and clear now.

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 non-monetary relief