Consumer complaint received 2022-06-20
Company: WELLS FARGO & COMPANY
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
Hello CFPB, My name is XXXX XXXX and I have been living in XXXX XXXX, FL for over ten years. Given the skyrocketing rental prices I decided to purchase a condo in early XXXX of this year. 

The 60 day closing at XXXX XXXX XXXX # XXXX was set to close on XX/XX/XXXX and we were notified that Wells Fargo was denying the loan the day before closing after XXXX on XX/XX/XXXX. I dont think that we need to do a deep dive as to the fallout from this action by Wells Fargo and its impacts on me, the Seller, the title company, and all the entities ancillary to the transfer of property ownership. I will not at this point go into the consequences of being faced with no place to live as that requires only a common-sense analysis and this complaint is not for purposes of a pity party. Rather, we need to get to an immediate solution with the lender. 

Without drilling too deep, the denial was based on Property type does not meet investor/lender requirements, which would suggest an issue relative to property types like commercial, residential, duplex, townhome, cooperative, etc. It is unclear to us why the denial in writing did not mirror the reason/reasons for denial repeatedly communicated, which revolved around representations that the loan was not qualified per Fannie/Freddie and that XXXX would not be lending on XXXX XXXX XXXX because the 50 year certification was not complete. 

On XX/XX/XXXX, Wells Fargo sent the property management company a Project Condition questionnaire which was responded to the same day. Wells Fargo was provided with a cost breakdown of concrete restoration work that had been contracted for by the HOA- as multi-family structure and the loan being sought is totally within the normal course of business insofar as lending and the building was sufficient collateral, well maintained, with work that needed to be done contracted for with no health and safety issues existing. 

The condo in XXXX XXXX was fully insured, the work that the city was requiring had been itemized, a loan had been acquired by the HOA, the contractor had been hired, and a request for building permits had been submitted. The XXXX XXXX XXXX property is a well-maintained building that has been fully managed and cared for and poses no safety risk to its occupants. Most older buildings in XXXX XXXX are in similar condition ( as with any older building, there is always maintenance needed ) and the building is safe and provides sufficient collateral for the loan. 

We believe Wells Fargo did not act in good faith and breached its contractual obligation to us to avoid a loan obligation that Wells Fargo felt was unfavorable given the locked interest rate we agreed to and the rates that were in effect on the date of the closing. Alternatively, the individual who denied the loan the day before the closing negligently, erroneously, or otherwise wrongly denied the loan and we are making every effort to mitigate damages and provide a pathway for Wells Fargo to do same. 

We are available via the phone number in this profile another cell phone is XXXX. 

Anything further we can provide please do not hesitate to reach out. 

Thanks very much. 

All the Best, 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