Consumer complaint received 2016-12-19
Company: WELLS FARGO & COMPANY
State: MA
Product: Mortgage
Sub-product: Reverse mortgage
Issue: Application, originator, mortgage broker

Complaint:
I would like Wells Fargo to provide an explanation of the role that FHA INSURANCE plays from the collection of data, to the approval of said data, and subsequent usage of facts obtained from the data provided within the FHA application. I do know that I pay a MIP ( Monthly Insurance Premium ) as well as other servicing fees. I believe that I have been paying Insurance premiums based on a fraudulent lender FHA Insurance. I believe that I was approved for the HECM scam due largely in part to the fraudulent XXXX Application. The fraudulent application from Con-Man Wells sales rep, XXXX XXXX XXXX XXXXXXXXXXXX based on an invasive Credit Report along with intrusive access to my income tax history.. The very first information that is listed on the FHA XXXX Application clearly state my intentions for my HECM. Obvioulsy, just like every other senior in the world who obtains a Reverse Mortgage, I applied so I could receive ADDITIONAL INCOME. The next choice indicates that I have apllied for my ADDITIONAL INCOME to be disbursed as a LINE OF CREDIT. 
Your underwriter 's job is to assess the borrower 's ability to pay for the requirements of a HECM. He/She would know my anuual salary. He/she obviously would have noticed the ratio of median income as opposed to the amount of disposable income. That underwriter knew I was the perfect Wells Fargo " muppet '. That what teh underwriter was assessing. Demographics, No Husband or C0-Borrower to help maintain the property taxes and Home insurance, Uneducated, Trustworthy and about to lose the last {$35000.00} I had to my name. And most importantly, my credit history/score was Extremely Poor. A slimy sales rep was right there every step of the way along with help from the Wells Fargo HECM assembly line that walks the senior down each path of the scam. never deviating from the plan by allowing or encouraging the senior to follow the laws of counseling. 

EXREMELY POOR CREDIT, NO SAVINGS, INSURMOUNTABLE DEBT, and recovering FROM XXXX = PAINTING THE PERFECT PICTURE to Wells Fargo as a person who WILL DEFAULT on her taxes, home insurance, etc. A home that ( we ) Wells Fargo will be owning in a matter of a few years. All for a disbursement of " allegedly {$180000.00}. '' I 'm sure Wells Fargo 's market analytics knew that real estate would be booming again from 2011 and on. So Wells Fargo pretty much knew that " their appraiser 's '' price of {$300000.00} ( Which will also play a part in this scheme ) would only rise over the next few years. 

Normally, with a traditonal HECM, the lender wil invest roughly 58 % into liquidty conversion for the senior and pay it out in a Lump Sum or Line of Credit. The remaining 42 % of equity will be disbursed monthly ( Totaling Roughly $ XXXX-Just like a mortgage payment ) for MIP and additional service charges while accruing interest. Within no time, the senior spends the money. ( I wanted to be responsible and let WF disburse my XXXX for taxes. It 's just a matter of time before the remaining 42 % is sucked up through what amounts to monthly mortgage payments. Another classic Reverse Mortgage advertisement pitch " You 'll never have to pay a mortgage again '' Wells Fargo used the FHA to insure the loan so Once that elderly person dies, the house can not be sold because it may be under water in excess of {$100000.00}. In comes Wells Fargo to cash in on their risk free investment, take possession of the home and recoup any and all losses associated with depreciation or monthly MIP and service fees. All because the FHA Insured the HECM. We 've all seen the ads " A Government Insured Reverse Mortgage ''.

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