Consumer complaint received 2022-06-02
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: WELLS FARGO & COMPANY (CA)

XXXX XXXX through XXXX XXXX - Wells Fargo communicates availability of COVID forbearance for both of my mortgages with them. I apply, and both mortgages are accepted for relief. 
XXXX XXXX, their forbearance acceptance notification clarified the possible restructuring/repayment options available at the conclusion of the forbearance : " These programs may include continuing suspension of payments, moving the suspended payments to the end of the loan, or a modification to help with longer term financial changes. '' XXXX XXXX. Without consulting me or securing my approval, Wells restructures the payments missed under forbearance into a " second unpaid principal balance '', essentially a second mortgage or balloon payment that can not be paid off or even paid down until the first principal balance is fully paid off. Their previously described program to move payments to the end of the loan was never discussed or provided as an option to me. I did not apply for second mortgages with Wells as part of the COVID relief restructuring, nor did I ever agree that my missed forbearance payments should be turned into a second mortgage balance that could only be paid in a lump sum after the first mortgage balance was fully paid off. 
XXXX XXXX - I resume my regular mortgage payments, which I have continued to make faithfully and on time until now. 
XXXX XXXX- I attempt to apply for Home Equity Loans, Home Equity Lines of Credit with other banks to do home maintenance and am told that the " second unpaid principal balance '' automatically disqualifies me from additional financing, despite having an excellent credit score and payment history. 
XXXX XX/XX/XXXX - I inform Wells of this situation, asking them to restructure the loan so that the suspended payments are moved to the end of the first loan, or to spread out the payments for the second balance across the remaining term of each first mortgage. Their representatives refuse to do this, referring me to XXXX XXXX as having oversight of the second balance, and steering me to apply for a refinance ( at today 's much higher rates, and involving thousands of dollars of unnecessary fees ). I call XXXX XXXX and am informed that Wells is the servicer of both balances and that Wells has to follow the CARES guidelines, and that they should escalate my concern to their XXXX  representative ( s ). I call Wells again to inform them that they are responsible for providing reasonable servicing options for the second principal balance, but they tell me I have to pay the second balance off in one lump sum, whether now or at the end of the loan. The same day, as an experiment, I make payments on both of my mortgages, adding {$100.00} additional principal to each payment. The payment system does not allow me to select which balance ( first or second ) these additional principal payments would apply to. I call XXXX XXXX again, and their representative decides to escalate my case, while also recommending that I file complaints with the FTC and CFPB. 
XXXX XX/XX/XXXX- Wells generates new statements for both of my mortgages. The additional principal amounts were both applied to the first balances. I call Wells to ask if these additional principal payments can be applied to the second mortgage. The Wells representative tells me they can not, that the second balances can only be paid off as lump sums after the first balances are paid off in their entirety. I ask for documentation of this. Wells sends me a document from XX/XX/XXXX, detailing these terms, " You will be responsible for paying the past-due amounts upon the maturity date of the mortgage or earlier upon the sale or transfer of the property, refinance of the mortgage loan, or payoff of the interest-bearing unpaid principal balance. The payment deferral balance can't be pre-paid prior to maturity or payoff. '' In summary, the CARES guidelines for mortgage lenders say that borrowers have to repay, but that they can *repay over time*. Wells is not complying with these guidelines, refusing to allow me to repay my missed payments *over time*, and causing me financial harm by preventing me from gaining access to other financing ( including 3rd party payoffs of the second principal balances ), and trying to steer me into an unnecessary and costly refinance. Essentially Wells is harming me financially because they turned the COVID forbearance into a second mortgage that locks me into an abusive financial relationship with them, with no flexibility and no way out except at enormous cost to myself. I consent to this complaint being published on the CFPB site, because I am sure that I am not the only person experiencing this.