Consumer complaint received 2016-05-26
Company: WELLS FARGO & COMPANY
State: FL
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Application, originator, mortgage broker

Complaint:
RE : Wells Fargo refuses to give a letter of denial for Home Preservation Loan I have mailed & faxed a letter on XXXX/XXXX/XXXX about a letter of denial. 
I will further describe my issue as follows ; I purchased my home in XXXX for {$140000.00} & financed through Wells Fargo. In XXXX I acquired a 2nd mtg, equity line loan, for {$120000.00} w/ Wells Fargo Bank XXXX I used {$120000.00} as making improvements to my home. In addition to that, I invested {$140000.00} back into improvements on my home as well. I have remodeled my swimming pool, purchased the lot next door to my property, & built an XXXX-car detached garage on it in XXXX. There have been many numerous improvements made. When all construction was completed, a new appraisal came in for {$390000.00} replacement cost & {$160000.00} market value. My intentions were that I would refinance my home under XXXX fixed rate loan after all construction was completed as I did n't want a 2nd mortgage. However, due to the economy & the unrealistic real estate market, I was unable to get an accurate appraisal. In XXXX XXXX, an appraisal came in at {$310000.00} ( Wells Fargo did accept this appraisal ) market value which is enough to refinance my home all under XXXX fixed rate interest mortgage. Also, keep in mind my 2nd mortgage is coming due after ten years, which is XXXX, so I did need this loan to go through. Also keep in mind I have been self-employed since XXXX, XXXX years & my income has not changed over the years, so this should n't be a problem. In XXXX XXXX, I applied for a refinance loan with Wells Fargo with an affordable interest rate. Wells Fargo accepted this loan app & ran it through all the steps to the point of getting it to the title agency & came within two weeks of closing & at the last minute stopped the process and said I do n't make enough money for this loan, keep in mind my total mortgage payment was originally scheduled to go down from what I was paying by about {$400.00} per month. 
I did receive a letter of denial shortly after Wells Fargo explained to me that I did n't make enough money to qualify for the refinance loan. Even though I have never been late on any of my payments for my first or second mortgage in the past & now I am being denied for a loan with my payments projected to being less. After much going back & forth with Wells Fargo about their decision, Wells Fargo advised me to try going through another department what they called a Hardship Loan. All I had to do is prove I did n't make enough money to qualify. This should n't be a problem, so I was told. I applied for a Hardship Loan through Wells Fargo 's Loan Preservation Department at which point, in XXXX XXXX, a week later I was told verbally that I was denied due to not making enough money. I have not yet received a letter of denial from the Home Preservation Department through Wells Fargo. Wells Fargo has ignored my entire request. As of XXXX XXXX, XXXX, Wells Fargo has forced me into a fixed rate second mortgage of their choice and my payment has gone up {$400.00} per month from what I was paying. Please tell me how if I do n't make enough money to quality for a good interest rate, how can you approve me for a payment which is {$400.00} more per month, but yet you denied me for a payment which is affordable because I do n't make enough money to afford to lower payment. Our government needs to step in & make changes with exceptions to those people who have borrowed money under an equity line loan. When it comes due, give them the best possible financing which will combine their mortgages at the best rate without pre qualifications, i.e., provided that the borrower has been faithful in making their required payments on time. This procedure I am forced to go through, is just not realistic and makes no sense at all. Also, I am insisting that I get the letter of denial from Wells Fargo Loan Preservation Department.

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