Consumer complaint received 2017-04-19
Company: WELLS FARGO & COMPANY
State: CA
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
I 'm filing a complaint against my mortgage servicer  Wells Fargo Bank ( WFB   ),   due to negligence and engaging in an approval of a predatory loan modification offer on  XXXX   XXXX ,  XXXX . The terms of this modification were not in line with the terms of the making homes affordable  ( MHA ) and ( HAMP ) guidelines at the time that it was approved. At the time my loan was approved WFB, ignored their fiduciary duties in which they were bound to by way of the terms of  the mortgage bailout. The Treasury Department had invested   XXXX   XXXX   hundreds of banks through its  Capital Purchase Program  in an effort to prop up capital and support new lending. This bailout was approved by the Obama administration shortly after he took office in  XXXX . WFB, did not follow the industry standards when loss mitigating loans that were originated by failed mortgage entities such as  XXXX   XXXX  Bank.  XXXX   XXXX  Bank placed me into a  4 p ayment option arm loan illegally after a bait and switch refinance.   XXXX   XXXX   loans are to be modified with what 's known as a stair step modification. Due to the negative amortization feature of these loans where monies are added to your balance through a duration of abou t five ye ars, after the  five years  the loan payments balloon to  3 a nd 4 times the amount of the original payments and the homeowner suffers payment shock. At the time my loan was modified in  XXXX  by WFB, my loan was not placed into a stair step program based on the negative amortization feature of the original loan. Th e 4  payment option arm loan greatly increased my original loan balance and placed me in grave loan to value by the tim e WFB, m odified the loan.     Knowingly, WFB, overlooked my loan for the stair step program and ignored using the payment calculations of 31 % of my gross income at the time the loan was approved, there for further damaging my efforts to retain my home. They started my rate at 4.7 %, which was  XXXX  points higher than the national average at the time, and the rate increased to its original rate of 5.875 %. Based on my income at the time the loan was approved the payments were egregiously out of line with my qualifying income and WFB, threatened to foreclose if I did not sign the agreement at the time. Further causing me unnecessary stress and damage to my credit reports and overall financial well-being. Furthermore this illegal modification that was given to me was never executed and countersigned by a loan agent  or officer of a WFB, executive, n or was this modification ever recorded  with my county lan d records in  XXXX  This  failed obligation of WFB, also negates and invalidates the entire agreement and all payments made toward this offer must be returned to me as they were part of WFB, misrepresentation and were collected under false pretense on behalf of WFB.   Furthermore, I never received a copy of an executed final offer which reflected an amortization schedule per RESPA and TILA, which also invalidates the modification because the interest is not clearly outlined in the final terms. Nor was I given an escrow ledger after the final modification was calculated and allegedly made  " Whole ''. In f act this predatory loan modification forced me onto financial despair and I was forced into chapter  XXXX  bankruptcy.     In fact, WFB and other mortgage lenders were sued by the Federal government for fraud, misrepresentation, dual tracking and illegal foreclosures as well as purposely forcing California homeowners in particular into inevitable foreclosure.

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