Consumer complaint received 2020-11-18
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: WELLS FARGO & COMPANY (WA)

Due to Covid-19 I lost my job, I still paid my mortgage on time on a weekly basis like I always have. I could not find work do to Covid-19 so I requested WELLS FARGO to place me on a 3-month forbearance since I could not find work, at close to the end of the 3-month forbearance, but due to me making weekly payments I only used 2 months. I called Wells Fargo to take me of their forbearance program that I have obtained a job, but with significant reduction in income that I would like to refinance. Wells Fargo said I could not do that as Iwas on their forbearance program and they can not refinance our loan. So, I asked about a modification to the loan due to the significant income reduction and the fact that we are paying a 4.75 % interest rate and PMI insurance around {$500.00} per month. I said there has to be something that could be done, like tack the forbearance payments on the back of the loan, significantly lower the interest rate and remove the PMI Insurance as its been over two years, made extra payments and the home value has increased. Wells Fargo still said No can not help, would you like to be put back onto our forbearance program, I said no I want to pay my mortgage, I am requesting help with refinancing or a real modification. Finally, after many weeks of trying to get in touch with someone from Wells Fargo they said potentially we could be part of a re-modification program they would send out documents we would need to fill out. Sent by fax all requested Documents on XXXX. Finally on XXXX I received a call from XXXX stating she worked for Wells Fargo that my modification has been approved and asked if I would commit to the offer, I told XXXX I don't have any documents in front of me so how could I even agree to anything, I asked XXXX if she could email the to me so we could discuss details. XXXX said no should could not do that. XXXX said she would go over the modification even though I had XXXX idea what it says, I had to go off what she was telling me that the Loan Modification was approved, the loan would be extended 10 years, interest rate would be 3.25 % and the new payment would be {$2500.00} per month for 40 years, I said that does not take into account the almost 2.8 years we have paid on the loan. XXXX asked if I would agree to this, I again told her that without having all the documentation in front of me that is impossible. I also asked if the PMI Insurance was removed as it is around $ XXXX {$500.00} per month and would significantly help with ensuring payments are affordable. XXXX said her department does deal with that, that is another departments business. I said that doesn't really help the situation if you are trying to get me to sign something, I do not have all the facts of what it is Wells Fargo is trying to do. XXXX said I should have documentation sometime, I asked when should I expect this documentation, XXXX could not say. Because covid-19 I had a loss I still paid my mortgage on time up until a significant loss of income, why should Wells Fargo profit off so substantially of me due to the pandemic which is 100 % out of my control. By accepting Wells Fargo 's offer ( which I have yet to even see ) is doing just that placing a severe financial hardship on me with their unfair and devious terms! Mortgage Rates are at an all-time low of 2.3 % and even lower in some areas. So, by them adding over 12 years on to my loan when I only missed 2, continuing to force me to pay PMI and not lowering my interest rate to at least a 2.5 % is absolutely wrong and unethical! **UPDATE**.. RECEIVED letter from Wells Fargo on XX/XX/XXXX, Wells Fargo sent one of their local reps to give a valuation on our home, but low and behold the valuation is SEVERLY LOW, homes and properties not even comparable, the local housing market is on fire and there is a lack of homes in this price range and is well documented. I have requested a local evaluator do the same valuation as Wells Fargo 's evaluator to ensure accurate valuations, well guess what Wells Fargo 's evaluator UNDER VALUED our home by over {$160000.00}. This difference is outright fraud and absolutely intentional, in fact late in XXXX we had an independent valuation which is only {$10000.00} difference from the XXXX valuation. RECEIVED.. letter from Wells Fargo on XX/XX/XXXX saying they received letter from CONSUMER FINANCIAL PROTECTION BUREAU , that they would respond by XX/XX/XXXX well this did not happen, but a few days later CFPB received a response saying they could not get a hold of me, FALSE I work from home I'm available XXXX! RECEIVED.. letter from Wells Fargo on XX/XX/XXXX, this letter was the outline for the first modification agreement which states we need to accept this offer by XX/XX/XXXX, this is the reason for the complaint Wells Fargo wants us to agree to documents that we never had to review hence the concern of FRAUD by Wells Fargo throughout this process. RECEIVED.. letter from Wells Fargo on XX/XX/XXXX, in response to my request for modification an removal of PMI, at which Wells Fargo states we are behind on payments which is false under the Covid-19 programs we are not behind and should be put on the end of the loan, so there is not states of being late. Also, the later states that our LTV is 89.9 % which is also false due to Wells Fargo 's rep SEVER UNDERVALUATION. THE FACTUAL INDEPENANT VALUATION puts our LTV SIGNIFICANTLY LOWER at 73.2 % which clearly is SIGNIFICATLY LOWER than required by law! As of XXXX Wells Fargo has stated to agree to modification terms or be foreclosed on. Wells Fargo will not answer or return calls to discuss details and the removal of PMI Insurance as the property valuation is far more than Wells Fargo 's evaluation! ALL Factual Documentation Is Available Upon Request. 

Wells Fargo to date XXXX has not been forthright with information and have refused to provide required documentation. I have requested ALL documentation on my loan, including all transactions, itemized loan detail, escrow statements, statements, letters, transcriptions of phone calls, reports, etc. since inception of loan with Wells Fargo. Wells Fargo has refused to put in print why, we are still paying PMI Insurance when the value of the property is greater than the 80 % required, I have requested PMI be removed and provided proper documentation from my independent evaluator and that that Wells Fargo themselves provided showing a valuation of 80 % of original loan. 

Also Wells Fargo has denied a previous request for mortgage modification assistance due to the Covid-19 Pandemic, with XXXX documentation provided stating why we did not qualify. After months of trying to get an answer, as we were prepared to send in payments for the trial mortgage modification, we received a letter stating that Wells Fargo would be denying a mortgage modification but still no clear reason of denial. After several more weeks we finally received a call from XXXX XXXX XXXX on XX/XX/XXXX to ask what our intentions are, we said KEEP the house that we have been trying to work with Wells Fargo since XX/XX/XXXX but have been getting the run around and a different stories from various people and not receiving any documentations to our questions. XXXX said she would see if Wells Fargo would address our request to remove PMI insurance as well as see if it were to review the previous Modification that was presented. XXXX called a few times over the next few weeks to say Wells Fargo is looking into our requests. XXXX said to go ahead and fill out another Modification Application and she would follow up. XX/XX/XXXX XXXX called to say that we were approved for a new modification and said the interest rate is 3.25 % and the loan would extend out 10yrs and the payment would be about {$3000.00} per month, I said that is about {$600.00} more than the original modification and only {$200.00} less than our current payment. And there is still {$300.00} of PMI in the new modification. Today XXXX I received the actual letter of terms that XXXX was relaying and the terms are NOT what was stated on our call the interest rate is 4.25 % loan was extended out to 13yrs not 10 yrs. To correct this fraud by Wells Fargo, the loan remod or refinance needs to be processed to help not hinder repayment terms, which means to REMOVE PMI INSURANCE, LOWER INTERST TO MARKET RATE OF 2.5 % -3 % AND DO NOT ADD ANY YEARS TO LOAN, THIS WILL BE AN AFFORDABLE OPTION FOR BOTH PARTIES.