Consumer complaint received 2016-03-17
Company: WELLS FARGO & COMPANY
State: NJ
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure

Complaint:
In an attempt to get my client reviewed for loss mitigation, on XXXX XXXX, 2016, I submitted a loss mitigation application and borrowers authorization showing I was representing him. It was sent via XXXX and received by Wells Fargo on XXXX XXXX, 2016. 

Prior to submitting the loss mitigation application, on XXXX XXXX, 2016, the Borrower submitted a Request for Information seeking information regarding what loss mitigation options were available, and the guidelines for those options. Wells Fargo failed to provide specific loss mitigation options available per the investor of loan. We believe this is a standard servicer duty and they have failed to provide this necessary information. By letter dated XXXX XXXX, 2016, I submitted a Notice of Error to Wells Fargo for failure to provide this information. 

Also in Borrower 's original Request for Information, he asked for copies of any loss mitigation options previously offered to Borrower, and any previous denials Borrower may have received. In response, Wells Fargo provided a copy of a denial for " Principal Forgiveness Modification ''. No other denial was provided. The reason for denial was " your current financial situations show that you have the ability to make your mortgage payment ''. We believe this reason is not specific as required by XXXX of Reg X, and Servicing Guidelines as promulgated by the National Mortgage Settlement. We also believe the statement is illogical. Based on their response, the least sophisticated consumer could come away thinking, Wells Fargo wants to modify loans for people that ca n't make their mortgage payment. 

By letter dated XXXX XXXX, 2016, Wells Fargo contacted me and confirmed that they had received Borrower 's Third Party Authorization, which named me as the Borrower 's attorney and gave me authorization to communicate with Wells Fargo about the Borrower 's account. 
As there is a pending Sheriff Sale, I called Wells Fargo on XXXX XXXX, 2016, to confirm that the modification application was complete and that the Sheriff Sale would be adjourned so the application could be reviewed. I spoke to Wells Fargo Representative named XXXX. XXXX informed me that the application was received and there was NO Sheriff Sale scheduled but that the paystubs were illegible. He also advised that I needed to speak with the " Re Entry '' Team. XXXX transferred me to XXXX in the Reentry Team and he gave me a fax number for the paystubs. 

We believe that Wells Fargo failed to acknowledge receipt of the loss mitigation application, in writing, within 5 business days of receiving the loss mitigation application. We also believe they failed request additional documents, in writing, within 5 business days. 

On XXXX XXXX, 2016, I attempted to call the Reentry Team. I spoke with a representative who stated that they did not have " borrower authorization '' to speak to me. I gave details of my prior communications and I advised that I had received written confirmation that Wells Fargo had received and acknowledged the Third Party Authorization. However, the representative would not provide any information and required me to fax a new Third party Authorization and wait 48-72 hours for it to be uploaded in the system. The conversation ended with me agreeing to resubmit the Borrowers Third party Authorization, again. 

continued on the attachment

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