Consumer complaint received 2017-08-30
Company: WELLS FARGO & COMPANY
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I believe Wells Fargo underwriters practiced discriminatory lending and are in violation of Fair Lending Laws by encouraging a high-cost loan option and disqualifying me of a competitive loan despite my credit qualifications. 

I am in the process of purchasinga home for my mother in the XXXX XXXX area XXXX XXXX XXXX XXXX. I live in XXXX CA.  My mother was given the opportunity to purchase the home she is in ( or given 60 days to move out ). She has been renting the home for over 10 years at a rate that has never gone up, despite the rapid increase in the cost of living in her area. However, she is low-income, and does n't qualify for the complete funds needed to purchase her current home on her own income. After researching various options, we were told by Wells Fargo I can purchase the home for a low interest rate, low down payment and monthly payments if I could live in the home. 

After 45+ days of submitting the same documents repeatedly, we were finally informed that I was denied because Wells Fargo underwriters were " unable to verify ( current ) residence. '' Wells Fargo originally requested to verify that I was n't currently living at the home, which I provided evidence ( tax records, employment location in the XXXX XXXX, a written and signed statement ). During a phone recorded verbal denial, I was told that Wells Fargo wanted me to use an investment loan for the home, which would have a higher interest rate, a larger down payment and higher monthly payments, something my family could never afford. 

I am concernedabout this for a few reasons. First, the home is in a predominantly low-income XXXX neighborhood AND we are working class XXXX XXXX. Although I have excellentcredit ( e.g- high credit score, no missed payments, track record of owning a home and paying on-time etc. ), I was denied a competitive mortgage loan and was told the underwriters wanted to do the loan as a less affordable option. Secondly, the denial reason is vague, and when probed for additional details I was denied by several representatives. The lack of a sound denial explanation and the makeup of the neighborhood along with Wells Fargo 's long standing issue with providing fair loans to minorities proves as further evidence that their intentions were never to offer the competitive loan, but to coerce our family into a more costly loan in the long-run. This issue has since been escalated up to the discriminatory division at Wells Fargo, but I have not been able to get a responsive.My mom has already undergone several hospital visits as a result of the stress that this situation has caused our family. 

What we are requesting is a full refund for the fees paid to the bank totaling {$560.00} ( for appraisal ) and monetary compensation as a result of the unlawful act of discrimination experience imposed upon my family. 

I am sorry that my XXXX XXXXXXXX, and the XXXX of my neighbors makes us a bigger risk to your bank, but no bank should ever be allowed to freely and without just cause deny qualified individuals of competitive loans on the basis of their economic and XXXX disadvantage and/or of their neighborhood.

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