Consumer complaint received 2016-03-09
Company: WELLS FARGO & COMPANY
State: CA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Credit decision / Underwriting

Complaint:
I applied for a loan with Wells Fargo Bank in order to get my roof repaired along with internal ceiling damage. I informed the mortgage banker of why I needed the loan before we started the process. I was pre-approved after my credit checks. After going through the loan process, I was denied at the appraisal stage due to the leaking roof and ceiling damage. It was stated that I do n't have sufficient collateral. The house is FULLY paid off and appraised at $ XXXX after repairs which were estimated at $ XXXX by the appraiser, yet Wells Fargo will not give me any type of loan. That is plenty of collateral. On my appraisal report, the appraiser mentioned that there is a possible foundation problem and a foundation inspection is recommended. They also told me this in person during the inspection. I had a certified contractor inspect the damage and he gave a preliminary report that no foundation damage was found. I submitted his report to my mortgage banker, and was then told that the report did n't matter because I was being denied solely on having a leaking roof and holes in my ceiling. After questioning why I was denied for that reason ( because they knew initially about the damage ), I was given the run around. I was passed around to different departments and given different reasons as to why I was denied in the end. After speaking with a manager, she informed me that a new department was just newly opened that would suit my needs perfectly ; A Home Renovation Mortgage. She said that all of my information would be forwarded to a loan consultant in that department, and I would still be able to keep my same interest rate that I was pre-approved for. After the renovation mortgage consultant looked over all of my files, he called and informed me that I was denied due to my credit score. He stated what the minimum credit score must be to obtain a renovation loan. I quoted him my credit score and told him it was higher than the minimum he just quoted me. He said he would need to talk to his manager and call me back. When he called me back, he said he was mistaken at the minimum required credit score was actually higher than what he had quoted me less than an hour prior. I then asked him about adding a co-signer on the loan application. He told me that I still would n't get approved. When I asked him why not, he could n't give me an answer. He just said it was n't possible with my current credit score. He had no idea what my co-signer 's credit score would be, nor their collateral. I then reached out to the manager once again. She stated that they planned on selling the loan to XXXX, and my home was ineligible due to the damage. She stated that in her 25 years experience, XXXX would never buy this loan due to the holes in my ceiling. However, my home was appraised at the XXXX level which XXXX does indeed buy loans for. I also did other research and found homes in which XXXX purchased the loans and they had the same type of damage that I currently have. I feel that I am being treated unfairly due to the location of my home which is in a predominately XXXX community. Everything was going well until they sent out an appraiser and saw the location of my home. I would like for you to look into the possibility of this being a discrimination issue because everything that 's been told to me from the bankers to the managers have been either contradictory, or just does n't make any logical sense.

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