Consumer complaint received 2019-07-03
Company: WELLS FARGO & COMPANY
State: NJ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
Consumer Financial Protection Bureau To whom It May Concern : I have recently experienced some financial challenges with a mortgage and credit line at Wells Fargo. During attempts to resolve these issues, I was encouraged by a non-profit mortgage resolution representative to contact CFPB for assistance. 
In short, Wells Fargo Bank and Mortgage took advantage of me. They misrepresented the status and refinancing options available during the mortgage application process. Following a much longer than stated process, they manipulated me into believing their last-minute substitution of a Wells Fargo credit line at 24.4 % APR vs the same amount at 3.875 % APR on the mortgage, was my only option. In fact, they even altered the planned pay-off of existing credit cards/credit lines to support the pay-off a Wells credit card/credit line that was being reissued. 
In advance, its important to understand the context of my mortgage refinancing application. I was on XXXX XXXX  and awaiting a XXXX XXXX XXXX. There had been some complications with the XXXX -XXXX and it was taking longer than expected. My income was definable, fixed and guaranteed ( XXXX XXXX XXXX and XXXX ). I had excellent credit and was using it appropriately to manage the delayed XXXX. In the prior year, I had even borrowed money from the XXXX XXXX XXXX XXXX. As the delayed XXXX  continued, I needed to make some financial planning decisions. Accordingly, I responded in XX/XX/XXXX to a Wells Fargo offering ( they had my existing mortgage ) for a consolidation loan. The consolidation loan would have eliminated all the non-housing debt, and advance enough payments on a vehicle lease, to weather the waiting, XXXX and recovery period after XXXX. 
My original mortgage balance was $ XXXX, and based on several online publications, I estimated my home was worth $ XXXX to $ XXXX. In my early conversations with Wells Fargo, I explicitly stated that my need required the loan to be at least 80 % LTV level, and hopefully, the house would appraise higher to fulfill my desired refinance plan. The Wells Fargo representative said the 80 % of $ XXXX would work, in fact, Wells Fargo initially estimated the home value at $ XXXX. 
I began the application process and was well prepared with all the necessary paperwork. In the weeks to follow, the appraisal valued my home at $ XXXX and was told closing would be next week. As instructed, I immediately requested letters and payoffs from creditors confirming that, upon payoff, the accounts would be closed. Instead of the mortgage closing, I endured five to six more weeks of repeated requests for documents, most of which had already been provided, and all of which were initially offered at application. The delay further complicated timely payments and payoff dates with creditors Prior to closing on XX/XX/XXXX, I was told and the final paperwork indicated, that the mortgage was lowered to a 70 % LTV, instead of the expected 80 %, and the creditor payoff agreement had changed. The Wells plan paid most of the creditors ( including the Wells Fargo checking credit line ) but not all. Instead of the additional 10 % LTV ( 80 % -70 % ) they would leave their credit line open, albeit with a XXXX  balance. Being somewhere between a rock and a hard place, I had no choice but to close on the mortgage. 
Retrospectively, the additional 10 % LTV, at the 3.875 % - 15-Year mortgage rate, would add an increase of about ( {$110.00} ) to the monthly mortgage payment, while the credit line, at 24.4 % APR, added at least ( {$500.00} plus ) per month. I have come to understand, that given a stated mortgage rate, it is likely Wells Fargo would make more money selling a 70 % LTV, as opposed to an 80 % LTV as discussed. Additionally, substituting the difference with a high-rate credit line, it seems Wells Fargo almost willfully impaired my ability to repay the loan, all the while ensuring they had robust equity in my house. 
I did have my XXXX  in XX/XX/XXXX, and after a long recovery, numerous complications and hospitalizations, I am now doing well. I firmly believe this financial situation with Well Fargo could have been avoided, had Wells Fargo not willfully misled me. Having said that, I would like to resolve this matter. I get repeated calls from people proclaiming their association with Wells Fargo, but nobody seems to have any authority to find resolution because, in their words, the mortgage and credit line are separate areas. 
It is my hope that the Wells Fargo credit line repayment terms simply be restated identical to the mortgage, 15-Year at 3.875 %. I anticipate the credit line could be paid off well in advance of fifteen years but my payments would be more manageable as originally planned. I appreciate any guidance you can give me in this matter. 
MEMO : credit line account No. XXXX mortgage account No. XXXX Best regards, XXXX XXXX XXXX XXXX

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