Consumer complaint received 2021-10-23
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: WELLS FARGO & COMPANY (MT)

I am writing a complaint about my recent refinancing of my home in XXXX XXXX, XXXX  with Wells Fargo Bank. First of all I am a retired servicemember who served this country for over 20 years. I feel that Wells Fargo took advantage of my lack of mortgage loan knowledge during this five-month process. I first started the refinance process in XX/XX/2021 and finally closed on XX/XX/2021. During this time XXXX XXXX, the mortgage originator, relied strongly on XXXX XXXX XXXX a mortgage processor from XXXX, XXXX. I had to provide the same documents multiple times to Wells Fargo. 

I originally supplied Wells Fargo with {$690.00} to cover the appraisal, but on the closing disclosure much more went to the appraiser in the amount of {$210.00}. Of that {$210.00} was a fee for {$140.00} for a final appraisal inspection. I have a problem with that, because he did nothing to earn that fee other than a drive by. I was home when he did it and at no time did he get out of his vehicle or come close to the house. I feel that is an unearned fee and under RESPA section 8, 1024.14 ( d ) ( iii ) ( A payment by a lender to its duly appointed agent or contractor for services actually performed in the origination, process, or funding of a loan ). The appraiser did conduct the first appraisal, but then after the roof was inspected, by another contractor, he did a drive by. That is not worth {$140.00}. Furthermore, I paid the {$690.00} upfront for an appraisal and it shows on the closing disclosure that {$670.00} was prepaid and then an additional {$88.00} was paid at closing. That is {$760.00}, not {$690.00}. The closing disclosure is very confusing to me and to a point deceptive. Next, on line C.01 under Other Costs there is a fee charged for {$200.00} but there is no one referenced in the to field. The fee is for a roof inspection that was completed by XXXX XXXX XXXX. XXXX XXXX never received a payment of {$200.00} for his inspection and report. It is blank so I dont know who received the money. This is a direct violation of the Truth in Lending Act section 1026.38 ( f ) ( 2 ) ( an itemization of the services and corresponding costs for each of the settlement services required by the creditor for which the consumer did not shop in accordance with 1026.19 ( e ) ( 1 ) ( vi ) ( A ) and that are provided by persons other than the creditor or mortgage broker, the name of the person ultimately receiving the payment for each such amount. ) that Wells Fargo required a contractor to perform a roof inspection and it was done by XXXX XXXX XXXX, but XXXX XXXX was never paid. Who got that money? 

I believe that Wells Fargo violated several financial regulations causing me to pay more fees for refinancing my home loan. The regulations affected were Real Estate Settlement Procedures Act, Truth in Lending Act, and XXXX. I saw XXXX as the bank unfairly discouraged me from using my VA status for a refinance by telling me the rates were higher without ever producing the rate. Under the Truth in Lending Act section 1026.36 ( e ) Prohibited Acts of steering ( ( e ) Prohibition on steering ( 1 ) General. In connection with a consumer credit transaction secured by a dwelling, a loan originator shall not direct or steer a consumer to consummate a transaction based on the fact that the originator will receive greater compensation from the creditor in that transaction than in other transactions the originator offered or could have offered to the consumer, unless the consummated transaction is in the consumer 's interest ) was violated. I always believed that the VA rate was the lowest. But going the conventional route ensured that Wells Fargo earned more fees. How unfair and deceptive is that? The loan officer only told me that the rate was higher for VA loans, but never showed me the rate. I was under the impression that VA rates were lower and there is no origination fee either.

Finally, Wells Fargo sent all the paperwork to my Title company on the day I closed at the time I was supposed to sign. I was scheduled for XXXX on XX/XX/2021 and the title officer received them only minutes prior to XXXX and I had to wait while she printed and prepared. 

In closing I would like to say the experience with Wells Fargo was anything but smooth. I also feel they do not care for retired servicemembers or originating VA loan as noted by steering me into a conventional loan.