Consumer complaint received 2020-07-27
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: WELLS FARGO & COMPANY (TX)

I refinanced my home mortgage through Wells Fargo Home Mortgage. I sought a better interest rate and switched from a 30-year mortgage to a 15-year mortgage. I requested private mortgage insurance ( PMI ) cancellation and a refund when I spoke to XXXX XXXX and XXXX XXXX, who were assigned to help me during the process of refinancing my existing mortgage. I explained that I had paid off PMI on the first mortgage and asked for assistance in cancelling the PMI and receiving a refund. They explained they would contact someone at WFHM in the PMI cancellation department. 

I received a letter from Wells Fargo Home Mortgage dated XX/XX/2020, stating that I was eligible for an estimated partial refund of {$620.00}. 

I received another letter dated XX/XX/2020, detailing cancellation options. The letter led me to believe I had already fulfilled the criteria for cancelling PMI. There were many different options given, and I felt I had fulfilled the requirements for almost every option. Specifically, I had already paid the fee of {$550.00} listed by WFHM for a home appraisal. I fully expected a refund of the PMI. When I didn't receive it, I contacted XXXX XXXX, who contacted someone in the company. The person he contacted stated that I had not fulfilled the necessary steps to receive the refund. I filed a complaint with Wells Fargo Home Mortgage and received a response from XXXX XXXX dated XX/XX/2020 stating that " the necessary steps were not completed prior to the loan being paid off '' and declining my request for a refund of {$620.00}. 

I believe this denial on the part of Wells Fargo Home Mortgage is unjustified for the following reasons, and I ask that {$620.00} be remitted to me by WFHM as soon as possible : 1. Wells Fargo abrogated its fiduciary responsibility : Since it was in the process of working with me to refinance my existing mortgage, and I was in close contact with two individuals from the company, XXXX XXXX and XXXX XXXX, both of whom I spoke to about the PMI cancellation refund, the company had a fiduciary responsibility to help me successfully complete the refund of the monies owed. While two letters were sent to me, no one from Wells Fargo responsible for PMI cancellation ever contacted me to help with the process. Wells Fargo was obligated to take affirmative steps to assure the successful completion of the process since I had requested that help from them. Not taking those steps constitutes negligence on the companys part. 

2. Wells Fargo adopted completely different customer service approaches depending on whether they were collecting money from me as their client ( during the refinancing portion ) or being asked to refund monies to me as their client ( during the PMI cancellation portion ) : When it was a question of my paying Wells Fargo for a service, they were open, transparent, and communicative. When I was asking justifiably for money to be refunded, however, they used deliberately obfuscatory language and instructions to try to confuse me as their client and thereby avoid paying the money rightfully due and owing to me as the client. See number 3 below. 

3. Wells Fargo deliberately wrote opaque and misleading instructions to confuse the client and unnecessarily complicate the process of refunding PMI. To give a few ( of many ) examples : The language sent in the Wells Fargo letter of XX/XX/2020 suggests that, as client, I had already fulfilled the criteria required. On page 3 and 4, the letter suggests different cancellation options that require no action on the part of a client requesting PMI cancellation. 
The letter ( page 5 ) states that the price of an appraisal starts at {$550.00} for a single family residence. Since I had paid Wells Fargo {$550.00} for an appraisal that it had already conducted, it seemed clear to me that I had already fulfilled the appraisal requirement -- I had paid the {$550.00}. The letter states a client should use XXXX ; however, it does not state that the appraisal information conducted by Wells Fargo would not be passed along to XXXX for use in its independent appraisal. 
The letter leaves clients with different options, but with no clear explanation of which one the client should chooseor under what circumstances. It does not explain, for example, whether a client should request an appraisal for {$550.00} or a Broker 's Price Opinion ( BPO ) for {$100.00}. Since I had already paid {$550.00} to WFHM, it seemed beyond the expectations of any reasonable person to think they should have to pay that fee again. No effort was made to help clients decide which option should be chosen -- or whether they needed to choose an option at all. 

4. Wells Fargo unreasonably set an early 30-day period to complete its PMI cancellation process : in an effort to run out the clock, the 30-day period makes it virtually impossible for clients to comply with this accelerated schedule. This is in direct contrast to its mortgage refinancing process, which sets a limit at 120 days. This expedited 30-day time limit does not allow clients to complete the PMI cancellation process in a reasonable amount of time. It imposes an artificial limit without basis in law or statute. 

5. Wells Fargo does not explain the basis of its fees or offer any rationale for requiring them : As a client of Wells Fargo already, there should be no reason for providing these additional fees, especially when the client has already paid numerous fees to Wells Fargo for appraisal and closing costs. These additional fees are never explained or justified by Wells Fargo ; thus, the explanations are insufficient for clients attempting to comply with the requirements. The explanations are insufficient for the entire process, since the instructions do not clearly specify which options, if any, need to be pursued by a specific client. 

For these reasons, I argue that : ( 1 ) I have complied with all reasonable steps that should have been taken to complete the PMI cancellation process ; ( 2 ) all fault lies with Wells Fargo Home Mortgage for failing its fiduciary duties in representing me and clearly explaining any specific, mandatory steps ( if any ) that needed to be taken to complete the process ; and ( 3 ) a full refund should be remitted to me in the amount of {$620.00}.