Consumer complaint received 2016-12-07
Product: Mortgage — FHA mortgage
Issue: Application, originator, mortgage broker — 
Company: WELLS FARGO & COMPANY (GA)

I went under contract for a home in XXXX 2016 with a certain lender. By the time very thing was gathered for my FHA XXXX renovation loan, the lender told me they would need an additional 30 days to close, making the total close process 90 days. Wells told me they could close me in 30 days, so I switched to them with the hopes of getting to the closing table sooner and possibly asking for a 2 week extension, max. Wells switched me to a conventional loan, though I was initially set up for FHA. When I asked about the switch, I was told I was a conventional customer and the loan would be a better option in the long run. The appraisal came back the day after I was to close ( XXXX/XXXX/16 ) at $ XXXX. Repairs on the house were $ XXXX, which meant I 'd have to reduce the scope of work or bring the difference to the closing table. We would have been able to close had the loan been left FHA since they allow you to borrow slightly above the appraised value. The seller did n't want to give us time to get to switch the loan to FHA, so I lost the contract and {$1200.00} in earnest money. I won the bid once the house was relisted in late XXXX and was told by Wells that they could turn the appraisal in two weeks. It would then go to underwriting, which would take up to 48 hours, then it would n't take much longer to close. We set closing for XXXX/XXXX/16. When I called to check the status of the appraisal on XXXX, I was informed it had not been returned although it was ordered XXXX/XXXX/16. I called the executive complaint line and received a return call from a senior processor, who told me he would get back with me once he had more info. He got back with me the next day to let me know he had no further info, but never responded to me any time after that. The seller denied an extension because we still did n't have an appraisal after 4 weeks, and $ XXXX in earnest money was lost. The appraisal came back the following week ( XXXX ) with an after-repair value nearly equal to the as-is value. Wells Fargo claimed they ordered an after repair value appraisal and the appraiser made a gross error, but no proof was provided. By the time the final appraisal came ( XXXX in XXXX ), the seller wanted additional earnest money and refused to apply my $ XXXX in earnest money to a new contract. I submitted another offer, which was denied, most likely because they had decided not to work with me in particular. I 'd like to know why it took Wells so long to get the appraisal when they knew I had a closing date of XXXX, $ XXXX in earnerst money on the table, and was on my second contract with the seller. There 's no one to talk to in regards to your appraisal. The executive committee does is say they 're going to look into it. They sent me a letter in XXXX saying it was going to take longer then expected, but of course I was n't under contract by then. I was asking about an appraisal, so I do n't know why they would take so long. No sense of urgency. I lost earnest money and the fee for the FHA consultant. I was eventually refunded the appraisal fee.