Consumer complaint received 2017-05-22
Company: WELLS FARGO & COMPANY
State: NC
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
After receiving a Reduced Rate Sales call from our existing Mortgage Provider, my husband agreed to submit an application for a VA Mortgage Refinance. Roughly 30 days later the deal closed ( XX/XX/16 ) with 1st payment due in XX/XX/XXXX. In XX/XX/XXXX we received a Letter of Demand for Outstanding 2016 Property Taxes ( delinquent XX/XX/XXXX ). It was a Final Notice before publishing our names in the local newspaper with a threat to garnish wages, bank accounts etc. After numerous calls to the bank, we were told that the taxes were paid 'on time ' from the now refinanced Escrow Account, but that was INCORRECT. After realizing the mistake, Wells Fargo proceeded to pay the delinquent taxes from the new loan escrow account while conducting a formal investigation into the matter. This has been an Official Complaint since XX/XX/XXXX & with every passing deadline for answers, they are still yet to provide any. The issues are as follows ; - Questionable Sales Practice, negligible benefit/ savings to customer. Nominal ( 0.5 % ) rate reduction, extended loan term, origination/ closing fees added to principle. - Although projected, Taxes Not Paid from 1st Escrow Acc't resulting in 6 month delinquency, why? - {$2400.00} - MISSING from 1st Escrow, still unaccounted for. - Bank Explanation ; Insufficient funds to close 1st loan, Incorrect payout figure, balance taken from escrow..??? - Incorrect Payout figure on banks own refinance, how is that possible? - What was the 1st loan Payout Figure? As asked in XX/XX/XXXX, still no answer. - Although joint title holder, Did the bank conduct Credit Check on non-borrowing spouse, without permission? - Closed VA Loan with property taxes in arrears. How? - Escalated to official complaint in XX/XX/XXXX, was contacted by bank rep/ customer liaisons officer handling the investigation who promised to make contact within 6 days ( as required by law ) to give update ( not outcome ) This did n't happen. XX/XX/XXXX thru XX/XX/XXXX zero contact. - XX/XX/XXXX. Contacted by different rep stating investigation still ongoing, XX/XX/XXXX projected date for outcome ... .. XX/XX/XXXX, no answers new projected outcome. XX/XX/XXXX. - Against our wishes, as stated in original complaint due to ongoing investigation. Bank is now debiting funds over & above mortgage payment, to make up difference in new escrow account. - Was the missing ( {$2400.00} ) from 1st escrow acc't used to offset new loan origination costs & closing fees? - Is Wells Fargo attempting to sell the servicing of loan to another provider while investigation still ongoing? The serious nature of our complaint is obvious and without answers, egregious. We have completely lost faith in the ability of Wells Fargo to manage this loan. Without recourse they can do what they wish, take what they want, leaving little room for the consumer to hold them accountable to the rules & regulations that are meant to protect us..

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 monetary relief