Consumer complaint received 2020-06-21
Company: WELLS FARGO & COMPANY
State: MD
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
In XXXX, I applied for a refinance for my FHA mortgage with my mortgagee ( Wells Fargo ). I paid {$500.00} to have an appraisal done on the property ( XXXX XXXX XXXX XXXX XXXX, XXXX ). 

On XX/XX/XXXX, Wells Fargo send me a letter of " Notice of Action Taken and Statement of Reasons. '' At the time I had a credit score of XXXX, an income of $ XXXX/year for the last 5 years, and had NEVER missed a mortgage payment to Wells Fargo for over 13 years. I can verify these statements. 

The letter informed me that Wells Fargo had considered the credit application and was unable to approve it for 2 reasons : 1. Issues with the propertys title can not be resolved at this time ; 2. Occupancy of residence cant be verified. 
I responded to their issues by noting.The deed was in my sons name only and asking why that is a problem since only my name remains on the mortgage? 
Why they could not verify my occupancy since I had lived at that property for the last 13 years and had submitted all my utility bills to Wells Fargo verifying my residence at the propertys address? 

Since Wells Fargo refused to refinance my mortgage for no other reason ( other than the profit they continued to make by my making higher mortgage payments of {$1700.00} ), I was unable to maintain payments and went into the foreclosure process. 

Foreclosure mediation was started by Wells Fargo on XX/XX/XXXX. The start of the foreclosure process by Wells Fargo now had no issues with my sons name on the property deed. 
Wells Fargo offered me a mediation plan which lowered my mortgage payment to {$1100.00}. This is a payment I could have afforded a year ago when they denied my application for refinance. 
But by allowing me this lower mortgage payment, they added on over {$60000.00} as a second lien to the property. Adding on this excessive amount to the mortgage now places the property ( appraised at $ XXXX, with a {$230.00} mortgage XXXX way above market value at $ XXXX. 

My complaint with Wells Fargo is : 1. I believe it is unlawful and unethical for Wells Fargo to deny a financially eligible customer ( i.e., XXXX credit score, $ XXXX annual income, and no missed mortgage payments for over 13 years ) a requested refinance for no legitimate reason ; 2. I believe it is unlawful and unethical for Wells Fargo to add on over {$60000.00} to the mortgage as a second lien in order to maintain continued payment by the mortgagor with an inflated and usurious charge containing excessive and arbitrary fines and fees, and which now places the property thousands of dollars above market value. 

I am asking Wells Fargo to give me the refinance option I originally applied for with the current lower interest rate and the present payment of {$1100.00} which I can afford and to remove the excessive and usurious fines and fees of {$60000.00} added as a second lien to the property.

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