Consumer complaint received 2017-02-14
Company: WELLS FARGO & COMPANY
State: AZ
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan modification,collection,foreclosure

Complaint:
XX/XX/XXXX we took out a HELOC through Wells Fargo Bank. Since XX/XX/XXXX we have tried to go through the BBB, The State of Arizona Attorney General and CFPB ( Case # XXXX ) to obtain assistance in what we believe was predatory lending and an inflated appraisal, which Wells Fargo refuses to produce a copy of. 
Letter sent to Wells Fargo on XX/XX/XXXX : As you could not produce the requested appraisal documentation, we have taken the time to research values XX/XX/XXXX. Here is what we have found : XX/XX/XXXX- Time of Purchase : $ XXXX/sq.ft.-Value {$130000.00} ( based on XXXX sq.ft. ) XX/XX/XXXX-Time of HELOC : $ XXXX/sq.ft.-Value {$410000.00} +33 % ( height of the boom ) XX/XX/XXXX-XX/XX/XXXX : $ XXXX/sq.ft.-Value {$370000.00} XX/XX/XXXX-Wells Fargo Valuation : $ XXXX/sq/ft-Value {$600000.00} In response to the only information you can provide : The original estimated value you provided was {$550000.00} o We are not realtors, mortgage brokers or appraisers, at the time, if we were to sell, that number would have been our desired price. 
Our valuation was an interior Broker 's Price Opinion review o The appraisal was a drive-by Broker 's Price Opinion ( BPO ), not an interior BPO. 
The first lien account principal balance at the time was {$310000.00}. 
o That loan was a refinance from XX/XX/XXXX at 70 % LTV which would have made the value of the home {$440000.00}. An increase of 31 % in eight years is understandable based on the market of the time. At {$600000.00} that is an increase of 77 % of purchase price in less than 10 years. 
Since the height and fall of the Real Estate Bubble, laws have been changed regarding appraisals : 1. Recognizing how the pressure cooker property valuation process contributed to busting the housing boom and is perhaps prolonging the bust, the Feds set up the code to relieve pressure on appraisers in order to make appraisals more reliable 2. Once the appraisal is completed, the lender will have to send the borrower a copy of the report. This should take place at least three days before closing. Prior to the change, it was up to the borrower to request within thirty days of closing. 
3. Law change XX/XX/XXXX re appraisals due to the housing boom " What happens is, a consumer goes to the bank, the bank collects {$400.00} for the appraisal, but pays the ( appraisal management company selected ) appraiser {$150.00} to do the appraisal and keeps the difference. Good senior appraisers ca n't afford to work for half price, but the consumer thinks they are getting a good appraisal. They have no idea the appraiser is getting half ( the payment ) and is a less-experienced XXXX. Yes there 's a transparency issue, but it 's also a quality issue, '' XXXX said. Read more : XXXX Once again, it is with certainty that we feel the value of our home was inflated by the appraiser and/or Wells Fargo XXXX It is also our opinion that as a Stated Income Stated Assets ( SISA ) Loan, the investigation by Wells Fargo fell far below the standard of care and the comprehensive due diligence required. 

At this time we request to be released of this debt and that the charge off be removed from our Credit Reports.

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