Consumer complaint received 2016-02-25
Company: WELLS FARGO & COMPANY
State: MN
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Credit decision / Underwriting

Complaint:
We have been planning to do a significant house project ( cost around {$200000.00} ). We were made aware of another opportunity through a different bank to take out a HELOC at the 90 % loan-to-value rate. We were considering this opportunity, but when we reached out to WF XX/XX/XXXX to see if by chance they would be able to help us, they suggested that they could and they could be competitive with the other bank. They told us they would be willing to do up to an 85 % loan-to-value at a comparable interest rate. We had our house appraised and we eventually closed on a HELOC with WF. The house appraisal came in at {$610000.00}. We ended up only doing an 80 % loan-to-value because WF had quoted us higher interest rates as we got closer to the closing. 
Fast forward about four months to XX/XX/XXXX. We had been making progress with our contractor in terms of cost for the project. We determined that we would indeed need a little more money to pay for the project. We were also made aware by our contractor that WF had helped other customers of theirs in doing a construction loan based on future value of the house. We contacted WF again in XX/XX/XXXX to see if the construction loan was a possibility. They told us that due to a software issue that they were not able to complete that type of loan, but perhaps in XX/XX/XXXX. They did offer to work with us on the HELOC again - to try to get the 85 % loan-to-value rate. We were quoted various interest rates ( both in paper mail and e-mail ) and we started down the path again, which was going to include another house appraisal. We were told that our appraisal in the summer of XXXX was outdated even though we had not made any changes to our house in the meantime. We had our house appraised on XX/XX/XXXX. According to WF, that appraisal came in at {$630000.00} but for some reason it was not " completed ''. We were told by WF that they would be using the {$630000.00} appraisal and then later told that they could not use it because it was not complete. Shortly before the appraiser came that day, we were also told that they were cancelling the appraisal because for some reason they had determined they did n't need an appraisal after realizing we had not done additional work on the house. After much back and forth and delays by WF, it is now XX/XX/XXXX and we still had n't closed on our HELOC. 
We were then told in XX/XX/XXXX that we were going to need another appraisal because the other XXXX had not been completed. It took quite some time to get it scheduled and we eventually did have the third appraisal on XX/XX/XXXX. That third appraisal came in at {$600000.00}. 
It is now XXXX XXXX and we still have not been given an updated quote for a HELOC at the new appraisal price of {$600000.00}. We have talked to several people within WF including the area that deals with customer complaints. We have been sent letters indicating that they would resolve the complaint/issue by XX/XX/XXXX and then XX/XX/XXXX. We have also asked for the appraisals to be sent to us. That has been promised several times and it has not happened. 
While all of this has been happening since XX/XX/XXXX, we have had all of the $ XXXX sitting in our checking account paying interest ( our records will verify that we never did " spend '' any of the original HELOC loan money ) while we get our finances in order to start the house project. However, you can not have your house " under construction '' when you are having an appraisal done, so we have been hesitant to start the project and now we have had months of delays. The project was originally scheduled to begin in XX/XX/XXXX. We have now paid back the loan and are likely moving our finances over to another bank as a result.

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