Consumer complaint received 2015-12-09
Company: WELLS FARGO & COMPANY
State: AZ
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Settlement process and costs

Complaint:
I am writing this letter on behalf of my inlaws. On XXXX XXXX, XXXX Wells Fargo Home Equity closed a {$26000.00} XXXX mortgage loan in the amount of {$50000.00} secured by their primary residence. Subsequently, on XXXX XXXX, XXXX Wells Fargo Home Equity closed a XXXX mortgage loan in the amount of {$26000.00}. After careful and thorough review of the loan documents provided it is glaringly evident that numerous state and federal regulations were violated in the origination and closing of these loans. To begin, 12 CFR 226.15 ( a ) ( 1 ) ( i ) of Regulation Z states ... " in a credit plan in which a security interest is or will be retained or acquired in a consumer 's principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind : each credit extension made under the plan ; the plan when the plan is opened ; a security interest when added or increased to secure an existing plan ; and the increase when a credit limit on the plan is increased. 
Furthermore, 12 CFR 226.15 ( b ) of Regulation Z states " In any transaction or occurrence subject to rescission, a creditor shall deliver XXXX copies of the notice of the right to rescind to each consumer entitled to rescind ( XXXX copy to each if the notice is delivered in electronic form in accordance with the consumer consent and other applicable provisions of the ESign Act ). The notice shall identify the transaction or occurrence and clearly and conspicuously disclose the following : ( 1 ) The retention or acquisition of a security interest in the consumer 's principal dwelling. 
( 2 ) The consumer 's right to rescind, as described in paragraph ( a ) ( 1 ) of this section. 
( 3 ) How to exercise the right to rescind, with a form for that purpose, designating the address of the creditor 's place of business. 
( 4 ) The effects of rescission, as described in paragraph ( d ) of this section. 
( 5 ) The date the rescission period expires. 
After careful review of the copies of documents for both transactions there is no evidence that either of them was provided with a copy of a Notice of Right to Cancel/Right of Rescission form, much less providing each of them with XXXX ( XXXX ) copies as required by the regulation ; a clear violation of their consumer rights. 
12 CFR 226.15 ( c ) which speaks to the delay of creditor 's performance mandates that unless a consumer waives the right to rescind under paragraph ( e ) of this section, no money shall be disbursed other than in escrow, no services shall be performed, and no materials delivered until after the rescission period has expired and the creditor is reasonably satisfied that the consumer has not rescinded. In reviewing the document copies provided there is no evidence of a HUD Settlement Statement. The HUD Settlement Statement has a settlement date of XXXX XXXX, XXXX which is the same date as closing, indicating they were not given the required three ( 3 ) business days to review the documents prior to the settlement of the loan. 
Additionally, there is not a copy of the final HUD Settlement Statement to determine compliance with 12 CFR 226.15 ( c ). Additionally, the absence of accurate settlement forms violates 24 CFR 3500.10 ( d ) which states, the settlement agent shall provide a completed HUD-1 or HUD-1A to the borrower, the seller ( if there is one ), the lender ( if the lender is not the settlement agent ), and/or their agents ... The Truth in Lending disclosure issued contains a material error in stating that the loan contains a variable rate feature and also inaccurately states that disclosures about the variable rate feature had been provided earlier. There is no such evidence of any such disclosure. There is also a pattern of missing documents.The missing documents include but are not limited to the following : deed of trust, TIL, Itemization of Amount Finaced, Notice of Right to Cancel, Privacy Notice, HUD.

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation