Consumer complaint received 2021-06-15
Company: WELLS FARGO & COMPANY
State: WI
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I sold my house a couple weeks ago with closing on XX/XX/XXXX. The mortgage was with Wells Fargo. I do not currently have any other obligations with Wells Fargo. Even though Wells Fargo received payment in full from title and escrow on XX/XX/XXXX, Wells Fargo lists the mortgage as paid in full but continues to show the payment as " unapplied funds '' and interest continues to accrue on the account. The system shows the principal balance as of XX/XX/XXXX as {$220000.00} and the payment received as {$220000.00}. The system then says " We have received funds that are not sufficient to make a full payment on your loan. If we are automatically withdrawing your payments based on a recurring weekly, bi-weekly, or semi-monthly schedule, your funds remain unapplied until we have received an amount sufficient to make a full monthly payment for you. '' The issue is they have received a full payment. In fact, they have received much more than a full payment ; they've received payment in full of the entire mortgage. Here is where my issue comes in. I made a payment on XX/XX/2021 in an amount of {$1400.00} with {$360.00} going to principal, {$760.00} going to interest, and {$340.00} going to escrow. This means roughly {$24.00} of interest accrues on the loan per day. I have never missed a payment. All payments throughout the life of the mortgage were paid on time. In fact, I made payments early at various times. On the closing settlement statement, it shows interest was paid from escrow to Wells Fargo in the amount of {$720.00} and was paid through XX/XX/2021. Why? The mortgage was paid in full on XX/XX/XXXX. At that moment, the funds should be applied and interest should stop accruing. From XX/XX/XXXX through XX/XX/XXXX, roughly {$98.00} in interest should have accrued. Why am I paying {$720.00} in interest through XX/XX/XXXX? If this is done intentionally to earn extra interest, this seems to be a violation of Dodd-Frank and UDAAP. 

Secondarily, I was also charged {$71.00} at closing for mortgage insurance. Why? The purpose of mortgage insurance is to mitigate the risk of default. At close of escrow and payoff of the mortgage, there is no longer any risk of default. Furthermore, I paid {$35.00} per month for mortgage insurance throughout the life of the mortgage. Why did I pay double that amount in XXXX? Once again, these shenanigans appear to be violations of Dodd-Frank and UDAAP. 

I would like to understand why I am still paying interest on a paid in full loan and why I paid double the mortgage insurance I was scheduled to pay. I would like a refund of the overpayment of both interest and mortgage insurance, as well as any other fees and charges I may have overpaid and are not immediately available from the statements currently available to me. Finally, I would like the CFPB to look at Wells Fargo 's lending practices to determine the scope of harm to other consumers.

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