Consumer complaint received 2020-03-05
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: WELLS FARGO & COMPANY (CA)

CFPB Manager, Please find below my complaint of Wells Fargo Home Mortgage Management of mortgage modification application in order of its occurrence. 
Thank you in advance for your attention to this urgent matter. 

Behind 3+ months on mortgage when officially began modification process - now 5-6 months behind. 
- Submitted all required docs to Wells Fargo - Received today XX/XX/XXXX a denial phone call citing that " investor '' will not accept 2 modifications within 5 year period ( we had a modification that adjusted up 2 years ago ). 

History of investor denials of Mortgage Modifications citing INVESTOR DENIAL. 
1. WF failure to disclose investor after multiple verbal requests several years ago on 2 separate requests for modifications. 
- At that time I was not aware that it is the law under ( 15 USC sec 1641 f2 ) that says : Upon written request by the obligor, the servicer shall provide the obligor, to the best knowledge of the servicer, with the name, address, and telephone number of the owner of the obligation or the master servicer of the obligation. 
- Wells Fargo never disclosed that a written request by me was required and that it was not even possible due to some agreement between the investor and Wells.

2. Fast forward 2.5 years ago when we applied again for a modification and received it.

3. Wells adjusted interest rate up and again we were unable to meet the new higher payment.

4. Wells fargo called when we were behind and asked if we needed assistance after 2 months behind. I delved further and asked if they could modify again? The person on the recorded line said in no uncertain terms that yes this was available to us.

In fact 3-4 modifications during the lifetime of loan was the typical rule.We discussed my former modification and he confirmed to me that it would not be a problem to go for the 2nd modification. 

NOTE : This was the first time I became aware that " multiple modifications '' were even possible to us ESPECIALLY after being told the first 2 times we tried - that a modification was completely off the table for our loan ... by our investor. 

5. I asked him to send the paperwork and they did ( further evidence that a modification was open to us. ) 6. We held off a bit trying to catch up with the mortgage but finally were unable to pay off the ENTIRE amount once as we went past 3 months and the total was due in full.

I tried to make a payment at the bank and that is where I found out they would need amount in full.

7. So we applied for the 2nd modification.

The intake person was enthusiastic about taking my information and then assigning a person who would then follow up. I again verified with that intake person that we could go for a second modification. 

8. My wife and I then gathered over a couple of weeks ( within time limit ) or so all of the necessary paperwork ... a very time consuming task.

9. We received confirmation that all paperwork met with their requests and to just wait up to a month for an answer.

10. At this point were about 4.5 months in.

11. We had every reason to believe we were eligible for the modification given our hardship, financial situation and that a modification was available to us ( every conversation and the docs sent and followed up on confirmed we were eligible for the 2nd modification ).

12. TODAY XX/XX/XXXX I received a phone call from our point person at wells who informed us that we were declined due to underwriters and investor - stating that we were ineligible for a 2nd modification within 5 years.

13. Imagine my surprise and disbelief at the misinformation at every point along the way from Wells Fargo.

14. The loss of time and energy.

15. I immediately delved into this " investor '' excuse Wells Fargo has used time and time again to deny our request for modification only to find out that I was ALWAYS entitled to know who the investor is/was and that I have a right to contact them directly as cited in THE TRUTH IN LENDING ACT ( 15 USC sec 1641f2 ) that states : Upon written request by the obligor, the servicer shall provide the obligor, to the best knowledge of the servicer, with the name, address, and telephone number of the owner of the obligation or the master servicer of the obligation. 

16. Additionally the CFPBs site also affirms that : Investor requirement After your lender gives you a mortgage, it may sell your mortgage to another investor. If your mortgage has been sold to an investor and you run into trouble making payments, the investor will determine what type of loss-mitigation assistance is available to you if you file a complete application for assistance. Though the new mortgage rules do not require investors to offer alternatives to foreclosure, most investors do so because avoiding foreclosure can reduce their losses. 
Tip : You have the right to know who the owner or investor is and how to contact them. 

link to CFPB statement : https : //www.consumerfinance.gov/ask-cfpb/i-got-a-letter-from-my-mortgage-servicer-about-my-application-for-help-to-prevent-foreclosure-of-my-mortgage-can-you-help-me-understand-some-of-the-terms-en-1807XXXX In summary : EARLY OBFUSCATION 1. When I first decided on Wells Fargo for a Mortgage loan back in XXXX - it was NEVER DISCLOSED that a 3rd party would determine material aspects of my loan that might have affected my initial decision to go with Wells fargo.

2. THEN to cite that which was false in the 2 initial attempts ( full applications ) for modification ( where they again led me on ) only to deny modifications based on investor denial. I allege Wells Fargo had prior knowledge that either a. they knew would deny my loan from the get go and/or they had a non-disclosed SECRET agreement with their investors that would in effect deny our loan modification. Either way it was a fraudulent act and contrary to the Truth in Lending Act.

3. NEVER at the time of the original 2 denials informing me of MY RIGHT to know who the investor was and in fact Wells Fargo went as as far as to state that they wouldnt/couldnt disclose who the investor was.

4. THEN to grant me a modification - never mentioning investor.

5. THEN to deny the next modification request 2 years later based on a NEW assertion that only 1 per 5 year period was allowed?? This again, NEVER DISCLOSED otherwise they would have, should have disclosed it FROM THE VERY FIRST PHONE CALL offering assistance.

6. IS IT LEGAL TO HIDE AND CHANGE ( servicer known ) MATERIAL DETAILS IN A CONTRACT IN THE STATE OF CALIFORNIA?

7. To this day I do not have any idea who the investor is? What the investors criteria are for granting modifications? Whether an investor has had any role in making the decisions related to my mortgage? Is Wells simply using THE INVISIBLE INVESTOR as a scapegoat for their own unilateral internal decisions? 

NEXT STEPS : I will contact the CA State Attorney General, my Congressman and Senator to make them aware of WF multiple and particular violations of the ( TILA ) Truth in Lending Act and discuss with an attorney any additional violations that may be present in my history with Wells Fargo.

I will also go through the appeals process with WF although that may also be a farce? 

***Please advise if you believe I should go public at this time with all that I have learned. 

Thank you for your time. 

Sincerely, XXXX XXXX XXXX XXXX XXXX