Consumer complaint received 2024-02-22
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: WELLS FARGO & COMPANY (AL)

In XX/XX/XXXX I found a house at XXXX XXXX XXXXXXXX XXXX XXXX XXXX, AL XXXX and decided to get a loan and purchase the house. I contacted Wells Fargo ; I have been a customer for 25 to 30 years. I submitted all the requested documentation including home insurance with XXXX ( XXXX XXXX XXXX : XXXX ( XXXX ). XXXX submitted two insurance documents to Wells Fargo, one for regular home insurance at a cost of {$1300.00} per year and one for Wind and Hail at a cost of {$2100.00}, the Wind and Hail coverage was through XXXX an underwriting insurance through XXXX  ( see attached two quotes ). 
After submitting all the documentation, I was told by Wells Fargo Home Mortgage agent { XXXX XXXX XXXX XXXX : XXXX Ext. XXXX } that the loan was approved and the total loan amount was {$120000.00} and my monthly payment for the mortgage would be {$1000.00}. A little higher than I wanted but I had a 7-year ARM at 6.87 rate and I was sure the interest rate would go down and I could lock-in and reduce my monthly payment below XXXX XXXX. 
On XX/XX/XXXX I went to closing at a Wells Fargo Bank in XXXX, AL and signed the closing documents. On XX/XX/XXXX I received a letter from XXXX stating that the Wind and Hail insurance was canceled due to nonpayment ( copy attached ), I contacted XXXX XXXXXXXX XXXX and was told that the regular home mortgage insurance was paid but not the Wind and Hail. I then e-mailed XXXX XXXX at Wells Fargo asking why this was not paid and was told ; ( copy attached ) Per my insurance review team, you are all good on the current XXXX policy and do not need a separate policy for wind/hail. We have received a confirmation stating the policy covers all perils including Wind/hail, Fire ( including wildfire ) /lightning/civil commotion ( including riots ) /smoke/damages caused by aircraft/vehicle/ explosion, thus XXXX has ignored the Wind/hail policy available in file and reviewed the XXXX XXXX policy on as acceptable. ( I have been a customer of XXXX XXXX for more than 25 years and I contacted them at the same time as XXXX but was told they did not include Wind and Hail but after the comment from XXXX I requested that the XXXX XXXX quote be considered ) ( email copy and XXXX XXXX quote attached ) and she replied ( in the same email above ) If you would like to go with XXXX XXXX now you can. You would pay XXXX XXXX in full. Then once paid and policy is in effect you will then cancel with XXXX XXXX will send you a check for the remaining balance left that you did not use since it was paid in full up front for a year. The XXXX XXXX  policy will need to go to the escrow dept to update your file so that when the bill is due next year, they can pay it. Call servicing at XXXX, listen to the prompts and you want escrow dept or taxes and insurance dept. If you need my help let me know I called XXXX XXXX XXXX XXXX XXXX and he reloaded the information but this time it was more expensive ( never had quote increase like that before ) so I decided to stay with XXXX. I received a letter from Wells Fargo dated XXXX stating that I will have a {$4800.00} escrow shortage due to a lack of Wind and Hail insurance ( copy attached ). I emailed Wells Fargo ( XXXX ) ( email attached ) and asked why this was happening. XXXX said let me look into this and see what I can find out. XXXX then called me and I was told that after a second review by Wells Fargo it was determined that I did not have the proper Wind and Hail coverage. She also stated that she could not believe what a mistake we ( Wells Fargo ) had made and that she had never seen something like this happen before. I told her this would cause me a lot of problems and I was not sure I could afford to stay in this house, she then said she would escalate this. I was later contacted by XXXX XXXX XXXX ; XXXX XXXX a few days later Case Number XXXX and was told that the review team called XXXX XXXX and was told verbally that the Wind and Hail was included ( XXXX told me they have documentation showing Wind and Hail was not included ) and because XXXX ( per Wells Fargo ) said the Wind and Hail was included that Wells Fargo did not make a mistake. ( Letter from XXXX attached ). On XX/XX/XXXX I received a letter from XXXX ( letter attached ) showing coverage for Wind and Hail had been rescinded, I contacted XXXX and was told that Wells Fargo paid for the insurance. I checked my home loan and found I was charged {$2100.00} XXXX XXXX XXXX to my account and XXXX told me that my monthly payment would increase by {$180.00} for the balance of the loan. That is about a {$64000.00} dollar increase over thirty years. Now if I lock in my rate, I will be lucky to get back to the {$1000.00} monthly payment. It seems that XXXX did not make a mistake and Wells Fargo did not make a mistake but I am the one that is being punished and will be forced to payor lose my house. I signed and agreed to the legal closing documentations and now the rules have changed. I would think that Wells Fargo would hire qualified employees that know how to read and understand an insurance policy. If I had been told before closing that my monthly payment would be {$1100.00}, I could have made an intelligent decision and decided wither or not I could make those payments but now I am forced to agree to the increased payments. My social security will make it very difficult to paid all the bills that come with home ownership with this increase. I should not be punished for their mistakes.