Consumer complaint received 2019-12-05
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: WELLS FARGO & COMPANY (MN)

In late XXXX of XXXX, I began working with Wells Fargo to refinance my home mortgage because my existing XX/XX/XXXX ARM was set to mature on XX/XX/XXXX. In early XXXX, I met with my WF investment advisor and he recommended that I work with XXXX XXXX as they have a relationship with her. Since I wasnt too far down the road with the other WF mortgage broker, I decided to give XXXX a try. I liked the idea of going with WF for my new mortgage because they offered an incentive where I could get a rate deduction based on my investment advisor relationship. For each {$250000.00} I invested with their brokerage, or for each {$250000.00} I moved to their brokerage, I would receive .125 % rate reduction. For example, if I had {$500000.00} balance, it would reduce my rate by .250 %. This seemed a little gimmicky, but I thought it was a good deal. 

On XX/XX/XXXX, I reached out to XXXX asking how long it would take to close on the WF loan and reminded her that my rate adjusts on XXXX, but had hoped that rates would drop further. At that time XXXX stated closing typically takes 60-90 days based upon capacity. On or about XX/XX/XXXX, we began the formal refinance process and I uploaded numerous documents to the WF site. I also paid the appraisal fee of {$620.00}. The appraisal was conducted on XX/XX/XXXX. I estimated the house would appraise for $ XXXX, but it ultimately appraised for $ XXXX. [ As an aside, the house was appraised by the same appraiser from XXXX and came in at the exact amount, even though I spent {$250000.00} on remodeling. Please note that a subsequent appraisal by XXXX XXXX   came in at $ XXXX. That appraisal was conducted less than two months later on XX/XX/XXXX ]. 

On late Thursday, XX/XX/XXXX, I locked in on a rate with WF. On Monday, XX/XX/XXXX, XXXX reached out to update me on the loan status. Please note, while I have uploaded all correspondence between me and WF, XXXX puts very little in writing. This seemed highly unusual but figured thats just her style. Anyway, at that time, and for the first time, I was told that WF will only lend 70 % loan to value ( LTV ) for the home mortgage and HELOC. That meant between the mortgage and HELOC I could only have {$840000.00} outstanding. That is, in order to keep my HELOC with XXXX XXXX, I could only qualify for {$490000.00} mortgage from WF which was completely unacceptable. My current mortgage balance was just under {$560000.00} with a HELOC balance of {$120000.00} and available credit of {$220000.00} ( total {$350000.00} HELOC ). From the beginning I was clear that I needed between {$620000.00} to {$750000.00} for mortgage while keeping the {$350000.00} credit line. It would be impossible for me to go with {$490000.00}. I was perplexed and asked XXXX why Im hearing about this for the first time. I also reminded her that in XXXX, my house appraised for the exact same amount, $ XXXX, yet I had a mortgage balance of approximately {$630000.00} and was approved for a {$350000.00} HELOC with XXXX XXXX  for a total of $ XXXX. I couldnt believe why now I had to reduce my total to {$840000.00}, especially when I had more assets and income. Please note that I have a balance of {$120000.00} on my HELOC that I used for remodeling. 

I told XXXX that I already felt squeezed with the appraisal coming in at the exact same amount as XXXX, but now I was also feeling squeezed by the 70 % LTV. I could not understand why on earth this was happening so late in the process. I had plenty of assets and income to cover much more than {$840000.00} in total debt. Also, the HELOC was not a secret as WF ran my credit report on XX/XX/XXXX and again on XX/XX/XXXX. 

At the same time, XXXX offered to seek a waiver for the 70 % LTV hoping we can get closer to 80 %. I thought, great, lets do it. Certainly there was a mistake and WF would ultimately realize that Im an excellent credit risk and rectify the problem. I heard nothing, so on XX/XX/XXXX, I sent XXXX an email asking her to make sure we seek a waiver for both the XX/XX/XXXX and XX/XX/XXXX ARM. She responded " understood. '' Again, I heard nothing so On XX/XX/XXXX, I sent XXXX another email asking if she had any updates on the status of the waiver and reminding her of the importance of keeping things moving. She responded that we are still waiting our turn. On XX/XX/XXXX, I sent XXXX yet another email a bit irritated that its taking so long and reminding her that my loan matures on XX/XX/XXXX at which time rates will adjust to 4.375 %. Later that day she responded recognizing that we are outside the normal underwriting turn times and copies her manager. I sent XXXX a fourth email on XX/XX/XXXX thinking that my mortgage loan was approved at {$650000.00} and inquiring about some additional requests on loan tracker which were quite unusual ( please see email chain ). XXXX responded a little later to let me know loan tracker can be a little misleading and asked if I would be available to talk ( again, no written correspondence ). 

When we talked, I was informed that WFs policy was 70 % LTV and a waiver can not be granted. At this point, I was quite upset and asked why we wasted so much time applying for a waiver only to be told that WF has a 70 % LTV policy. Its bad enough that this information wasnt conveyed to me back in XXXX when we started this process or XXXX or XXXX, but then I had to wait several weeks to find out that WF can not go below 70 % LTV. 

Now I was running out of time. I wasted so much time and effort with WF and my loan was about to mature in less than 7 days. I told XXXX I was incredibly disappointed with WF and asked why Im learning about WFs 70 % LTV so late in the process? Why was I strung along for so many months, especially the last few weeks? Why seek a waiver knowing one could not be approved because it was in violation of their policy? Additionally, I specifically asked not to terminate the loan process with WF until I explored all my options ( Please see my email correspondence beginning XX/XX/XXXX ). I was quite clear that I needed the full HELOC amount of {$350000.00} unless a portion of it could be transferred to the mortgage refi. XXXX was very accommodating and stated that she would do whatever to make it right, including refunding my appraisal fee. 

On or about XX/XX/XXXX, I received a letter dated XX/XX/XXXX from WF stating that they were unable to approve my loan application because either 1 ) not enough value in the collateral provided to secure the loan or 2 ) not enough combined assets to close this loan. Please see Notice of Action Taken and Statement of Reasons. I had no idea why I received this notice because I had plenty of income and assets and my credit score was XXXX, but I figure maybe XXXX prematurely cancelled the loan. Per the XX/XX/XXXX sent to XXXX which states, I just received a mortgage rejection notice from WF. I had asked not to cancel until I finalize things with XXXX XXXX  so Im not sure what happened. Regardless, as discussed, I would like the appraisal fee refunded as soon as possible. ( Please see email chains beginning XX/XX/XXXX ( Waiver Request ) and XX/XX/XXXX ). I note that I did not ask XXXX if I could get a refund because it wasn't a question. She told me that I would get a refund. As usual, I did not hear back from XXXX so on XX/XX/XXXX, I sent another email letting her know that Im still waiting for her response to my earlier email. She responded that she made the request and is awaiting a response. On XX/XX/XXXX, I sent XXXX yet another email letting her know that Im still waiting and this shouldnt take that long and how much this process is costing me. On XX/XX/XXXX, she responded ( and copied her manager, XXXX XXXX ) informing me that my request was denied. I responded and copied XXXX about my disappointment in this whole process and that I wasnt requesting a refund, I was telling XXXX to initiate the refund because she already agreed to honor it due to all the mistakes. I also reminded them that I wasnt the one who cancelled the loan refi, it was WF who cancelled. I subsequently spoke with XXXX twice who ultimately decided that WF can not issue an appraisal fee refund. He provided no reason as to why. 

I have uploaded all correspondence between me and WF. I also note the following : 1 ) While Im working with XXXX XXXX  to finalize my loan, I locked in on a XX/XX/XXXX ARM at 3.5 %. XXXX XXXX  recently notified me that they had agreed to subordinate my {$350000.00} HELOC. As of today, Im still waiting to close on my mortgage loan. 
2 ) On XX/XX/XXXX, I paid XXXX XXXX  an appraisal fee of {$390.00}. 
3 ) I locked in with WF at 3.125 ( including the relationship discount ) so going with XXXX XXXX  is less beneficial. However, Im allowed to keep my {$350000.00} HELOC intact. 
4 ) Im agnostic as to which lender I use ; however, going with a higher rate illustrates the importance of the HELOC and a higher LTV. 
5 ) While Im waiting to close on the XXXX XXXX  loan my XX/XX/XXXXARM matured on XX/XX/XXXX. I am paying approximately {$400.00} more per month in interest because of the delays caused by WF. I am currently paying {$2000.00} per month in interest. Had I closed on my loan at a rate of 3.5 %, my mortgage interest expense would be {$1600.00}. I dont anticipate closing for at least 3-4 more weeks even though XXXX XXXX  is working expeditiously on the loan.