Consumer complaint received 2016-11-16
Company: WELLS FARGO & COMPANY
State: MO
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
XXXX XXXX, XXXX Attention : CFPD, Wells Fargo did not allow a HAMP modification in XXXX. Wells Fargo ignored the instructions in the HAMP Servicer Guide. They refused to accept the documents I sent to verify my rental income and they also added penalties and late fees to my balance. According to the XXXX Servicer Guide, Supplemental Directive XXXX dated XXXX XXXX, XXXX, Wells Fargo should have considered my rental income. 
It states : Rental income. Rental income is generally documented through the XXXX - Supplemental Income and Loss, for the most recent tax year. a. When XXXX is not available to document rental income because the property was not previously rented, servicers may accept a current lease agreement and bank statements or cancelled rent checks. b. If the borrower is using income from the rental of a portion of the borrower 's principal residence, the income may be calculated at XXXX percent of the monthly gross rental income, with the remaining XXXX percent considered vacancy loss and maintenance expense. c. If the borrower is using rental income from properties other than the borrower 's principal residence, the income to be calculated for HAMP purposes should be XXXX percent of the monthly gross rental income, reduced by the monthly debt service on the property ( i.e., principal, interest, taxes, insurance, including mortgage insurance, and association fees ), if applicable. 

In the Lender Letter XXXX dated XXXX XXXX, XXXX, it states : For mortgage loans in active HAMP trial period plans initiated prior to XXXX XXXX, XXXX, all XXXX-approved servicers must consider the Alternative Modification ( " Alt Mod '' ) prior to the initiation of foreclosure for all eligible borrowers who were not offered a permanent HAMP modification after making payments under a HAMP trial period plan. 
It also states : Late Fees : All late charges, penalties, stop payment fees or similar fees must be waived upon conversion to an Alt Mod. 
Administrative Costs : Servicers may not charge the borrower to cover the administrative processing costs incurred in connection with an Alt Mod. The servicer must pay any actual out-of-pocket expenses such as any required notary fees, recordation fees, title costs, property valuation fees, or other allowable and documented expenses. XXXX will reimburse the servicer for allowable out-of-pocket expenses, with the exception of credit report fees, which will not be reimbursed. 

I had sent copies of lease agreements to Wells Fargo, from my tenants, for XXXX separate properties, at the time of the original review process. I also sent copies of my bank statements showing the deposit of money received for rent. On the property that rented for {$400.00} a month, I received payment by check. I provided copes of the checks received from this tenant. On the other property, the tenant always paid {$520.00} per month in cash. I provided a copy of my bank statements showing deposit of these funds to my bank account. I explained this in detail to the person that did the original modification review as well as documenting it when the documents were sent. 
I never received a letter stating why I was denied a HAMP modification. When I received the notice stating I was being offered an in house modification. there was no explanation as to why I did not qualify. I contacted Wells Fargo by phone to find out why I had not been allowed a HAMP modification and was told they had noted in my file that I received a total of {$30.00} per month rental income. During my conversation that day, I disputed the claim I only received {$30.00} per month in rental income. When the representative refused to help me resolve this error, I asked to speak to a supervisor. The representative said he was the supervisor and began asking me repeatedly if I wanted a modification. When I said yes, h

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