Consumer complaint received 2020-01-13
Company: WELLS FARGO & COMPANY
State: NJ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
The purpose of this communication is a means to follow up an initial complaint ( # XXXX ). The complaint details how Wells Fargo circumvented mortgage and consumer credit regulations by commingling a mortgage and bank credit line. The lender response to the first complaint left the matter unsettled, appeared to only deflect from the issues identified and most significantly never addressed a proposed solution. As troublingly, I found it difficult to navigate the mechanisms within the CFPB to assist me challenge the lenders bad faith response and willful avoidance of a solution. Accordingly, I write seeking the CFPBs assistance resolving this matter. 
In short, I am a XXXX  XXXX borrower with a stable and permanent income. As my XXXX progressed, I followed a financial plan to reduce obligations and manage my household finances. Initially, I had the good fortune and good credit to rely on lower cost shorter-term solutions from the likes of XXXX ( XXXX XXXX ) and others. However, as I awaited my second XXXX XXXX XXXX and the inevitability of being XXXX  XXXX, I needed a more permanent solution. The permanent plan was to refinance my home and pay-off remaining debt, all in advance of the XXXX XXXX. 
I contacted my mortgage lender ( Wells Fargo ) to refinance and consolidate what remained of my household debt. My initial complaint provides a more detailed account of the subsequent bank actions. In short, Wells Fargo commingled a mortgage with a much higher priced bank credit line to unjustly enrich themselves and put me into what effectively could be an unaffordable mortgage ( combined monthly payment ). They manipulated and extended the duration of the underwriting process. More specifically, at the very last minute, Wells Fargo shorted the existing debt pay off amount with a lower LTV mortgage that would pay them a higher profit. The delayed and now shorted debt payoff amount was replaced with a high interest rate bank credit line that the bank knew I had no other chose but to use. Needless to say the bank credit line was substantially more profitable ( 24.4 % vs 3.75 % APR ) for Wells Fargo. Considering the lower LTV mortgage, the bank had more equity in my home to attach in an adverse event.

The bank knew their delaying actions put me under the extreme duress of an untenable position. Being forced into an alternative higher priced arrangement that effectively eliminated, my Notice of Rights to Cancel ( NORTC ).

Wells Fargos response to my complaint deflected entirely from the issue at hand. It was incomplete and materially inaccurate. In fact, Wells Fargo failed to even address the resolution I purposed, a resolution that keeps the mortgage current and pays back 100 % of the disputed credit line component. Ive come to learn that the proposed solution is widely acceptable in these situations.

Wells Fargos only response to resolving the matter, almost immediately after the complaint, was to demand three monthly mortgage payments within a five week period ( due by the day after XXXX ) to avoid foreclosure. Despite great hardship, I made these payment by XX/XX/2019, making the mortgage current up to XXXX. 
At this point, I appeal to the CFPB and seek assistance resolving this matter. I believe Wells Fargo did manipulate the process with the intent of circumventing regulatory protections to enrich themselves at my expense and to the detriment of my credit rating. 
The initial resolution I proposed was as follows : The bank would reset and recalculate the credit line they paired with the mortgage to reflect the same interest rate and amortization as the mortgage. I would ensure the mortgage is current and the credit line paid down to zero within five years. For the record, my current mortgage and credit line reflect loan to values ( LTV ) of 63 % and approximately 6 %, respectively, versus the banks appraisal of my home. I have grave concerns regarding the damage they did to my credit rating. 
Thank you in advance for your time, attention and help in this matter

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