Consumer complaint received 2023-04-26
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: WELLS FARGO & COMPANY (IL)

This is in response to Wells Fargos letter dated XX/XX/XXXX, which purports to address the concerns I raised with the CFPB Complaint # XXXX against Wells Fargo pursuant to Consent Order, File No. XXXX as Im seeking remediation for the financial and emotional harm caused by Wells Fargo for its improper denial of my application for modification which has resulted in the loss of my home. 
Wells Fargos XX/XX/XXXX, letter is riddled with truths and out rights lies that I will address in the order they appear in the letter. 

Wells Fargo claims that the denial was not based on income but rather due to not meeting the NPV eligibility for the program. One of the NPV inputs is income. Wells Fargo is splitting hairs in an attempt to hoodwink the CFPB. Wells Fargo must be required to provide all of the NPV inputs it utilized as required by RESPA and HAMP, yet Wells Fargo still refuses to provide those numbers. Why, because Wells Fargo can only manufacture reasons for denial if it does not have to prove the reason for the denial. 
Clearly, Wells Fargo failed to actually read my complaint as it states in its letter the following : Weve determined when the account was reviewed for the Home Affordable Modification Program ( HAMP ) this resulted in a denial, due to not meeting net present value ( NPV ) eligibility for the program. Weve found no evidence the denial was based on income calculations. 
In my complaint I clearly stated that Wells Fargo incorrectly calculated my PITI as {$980.00}. I NEVER stated the denial was due to income calculations. Wells Fargo has failed to address this very specific concern of Wells Fargos inability to properly calculate principal, interest, taxes and insurance. As one of the largest servicers in the country one would think that Wells Fargo would know how to calculate simple math that involves addition and subtraction, this is not a physics equation. 
I was paying my own taxes and insurance payments and the loan was an interest only loan. The {$980.00} was the interest payment not the complete PITI payment. 
Wells Fargo claimed that I could afford my current payment because my DTI was 22 %. Again, that statement is false as Wells Fargo only considered my monthly interest only payment of {$980.00}. My DTI was in fact 38 % with just the interest only payment and escrow and would have been much higher once the principal payment was added. Wells Fargo stated in its XX/XX/XXXX, letter that it found no evidence the denial was based on income calculations. This statement is false as Wells Fargo claimed I could afford my current payment because the DTI was 22 % thereby issuing a denial based upon my income. See attached LMT Process Notes dated XXXX ( Exhibit A1 and A2 ) wherein WF calculates the total mortgage payment, PITI, as {$980.00}. {$980.00} is the monthly interest only payment. Wells Fargo continues with this error in calculating PITI in XX/XX/XXXX, see attached LMT Process Notes. 
In XX/XX/XXXX, Wells Fargo is still using {$980.00} as the XXXX and XXXX payment when it represents the interest only payment. See attached email string from XXXX XXXX, XX/XX/XXXX. ( Exhibit B ). This email also reflects the additional $ XXXX added to the principal with no explanation as to what that additional amount represents. 
Wells Fargos claim in its XX/XX/XXXX, that the denial for HAMP was not based on income is false based on Wells Fargos denial letter dated XX/XX/XXXX, ( Exhibit C ), a letter that Wells Fargo failed to provide to the CFPB in its effort obfuscate the truth. The XX/XX/XXXX, letter states You have not been approved for a mortgage loan modification because we were unable to get you to a modified payment amount that you could afford per the investor guidelines on your mortgage. Wells Fargo is stating that I am denied because I could not afford the mortgage payment. Obviously, affordability is based on income. 
Attached is Wells Fargos letter dated XX/XX/XXXX, wherein Wells Fargo employee XXXX XXXX states that there are two reasons I was denied a HAMP modification. First, the loan to value of the property or the appraised value was less than the outstanding balance of my loan. The appraised value of my property as of XX/XX/XXXX, was {$390000.00}, which is clearly more than the amount due of {$200000.00}. Wells Fargo had a valuation of {$420000.00}. See Exhibits E1 and E2. The LTV is under 60 %. The 2nd reason for the denial is because your debt-to-income ratio was at 31.01 %. This means the reason for my denial was based on income despite Wells Fargos claim it was not. The debt-to-income ratio was incorrectly calculated as Wells Fargo only used the interest only payment as opposed to the total PITI. Therefore, the XX/XX/XXXX, denial is bogus based on flawed data that Wells Fargo utilized to my determent. 
XXXX XXXX XX/XX/XXXX, letter ( Exhibit F ) is a denial based upon my income. Wells Fargo claims I was not approved because we were unable to get you to a modified payment amount that you could afford per the investor guidelines. Affordability is based on income. Wells Fargo has also refused to produce the investor guidelines it claims it so relied nor has Wells Fargo produced the NPV inputs it utilized to reach this decision. 
XXXX XXXX XX/XX/XXXX, letter ( Exhibit G ) states that after a thorough review of the financial information provided, we are unable to offer you a loan modification at this time. The denial is clearly based on income. This letter also references the Agreement wherein I was to make three monthly installments of {$490.00} each with a fourth payment of {$17000.00}. Wells Fargo had my financials and therefore clearly knew that I did not have {$17000.00} to make that 4th payment. Wells Fargo was setting me up for failure. However, pursuant to the LMT Process Notes dated XXXX, ( Exhibit H ( ), Wells Fargo states that it can not set me up in a 4-month plan of {$1500.00} month because the borrower can not be put in a plan they do not show the ability to afford. Wells Fargo seems to be concerned at a monthly {$1500.00} payment ; however, it has no qualms in setting me up to fail with a {$17000.00} payment. 
Wells Fargo knew what my actual monthly payment was including escrow as I had a conversation with XXXX at Wells Fargo on XXXX  ( Exhibit see page 23 -34 transcript ) who acknowledged that when the escrow was added to my payment the total payment was {$2100.00}. XXXX stated to me regarding the escrow I mean, you know, this isnt something for them to realize ; but, you know, and what they offered you, because it sounds like there was some confusion in what they said and what they sent and everything else. XXXX went on to acknowledge that XXXX XXXX offered me a step rate modification. However, the reality is that despite the fact XXXX XXXX approved me for a loan modification, Wells Fargo failed to make that offer to me. 
I issued two, very detailed letters, to Wells Fargo, dated XX/XX/XXXX and XX/XX/XXXX. Both are attached. My frustration is clear that in that Wells Fargo refuses to explain how it arrived at the amount it claims I owe. I would not/will not enter into an agreement to repay an amount that can not be substantiated as owed. 
Wells Fargo attached to its XXXX XXXX XXXX, letter two opportunities for me to modify my loan. I have already addressed the XX/XX/XXXX, payment plan that included a balloon payment of {$17000.00}. The letters I attached dated XX/XX/XXXX and XXXX, XXXX, detail the issues I was having and why the XX/XX/XXXX loan modification was questioned. ( Exhibit XXXX and XXXX ). 
The XX/XX/XXXX, loan modification increases the principal amount owed by {$23000.00}. I questioned how Wells Fargo arrived at that number but Wells Fargo was not able to do so. ( Exhibit K ). The XX/XX/XXXX, Wells Fargo letter reflects a total delinquency as of XX/XX/XXXX, as {$12.00}, XXXX. Why is Wells Fargo claiming one month later that the delinquency amount I owe has decreased by {$10000.00}? ( Exhibit L ). Wells Fargos job as servicer is to account for amounts owed and amounts paid, and Wells Fargo has demonstrated that it is unable to do that effectively and correctly. Is Wells Fargo smarter than a 4th grader, I think not. 
Wells Fargo filed a foreclosure action against me on XXXX XXXX XXXX I fought Wells Fargo for 10 years in the Court system. I paid well over {$80000.00} in attorney fees and costs to fight Wells Fargo. However, due to a technicality, the merits of my case were never adjudicated by the Court. Wells Fargo never had to answer for the fact that it improperly denied me for a loan modification because Wells Fargo failed to add my monthly escrow payment to my interest only payment. The numbers do not lie, its only Wells Fargo that lies. In addition to the legal fees, I have incurred {$10000.00} medical fees and costs in my effort to obtain help for my mental health as a result of losing my home when I know that Wells Fargo improperly denied my application for modification. And, the fact XXXX XXXX approved me for a loan modification which Wells Fargo failed to make that offer to me. I also have the loss of my home to an illegal foreclosure. The value of my home is {$350000.00} ( XXXX XXXX as of XX/XX/XXXX ) and I estimate I have lost over {$140000.00} in equity. 
Wells Fargo failed to properly evaluate me for loan modification which is an abusive act as defined by the CFPB. Wells Fargo leveraged certain circumstances to take an unreasonable advantage of me by lying as to the reason for the denial and based on its own records, that reason for the denial is a lie. Wells Fargo deceived me and XXXX XXXX by failing to use the correct number as to my PITI payment by using only the interest only payment I was making. Wells Fargo deceived me with ever changing numbers as to the amount I owed, and its employees could not answer the simple question as to how Wells Fargo arrived at these amounts. Wells Fargo impeded my ability to understand the reason for the denial for HAMP by failing to provide to me the NPV data inputs and to claim the reason for the denial was not based on income when every denial letter states the opposite. If Wells Fargo did not obscure, withhold or hide information from me such as the NPV inputs, I could have advised Wells Fargo back in XXXX it was using the wrong number for my current PITI payment as the payment it utilized with the interest only payment that did not include principal, taxes or insurance. Wells Fargo, to date, has failed to acknowledge that it made this mistake costing me my home and, to be honest, forced me to endure over a decade of incredible emotional stress and financial hardship. 

Wells Fargo needs to be held responsible for its lies, deceit and failure to do its job as a servicer of a federally backed loan. And to comply with orders of remediation for their conduct under the terms of the Consent Order Do not hesitate to contact me if you need any additional information.