Consumer complaint received 2021-02-10
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: WELLS FARGO & COMPANY (OH)

I have a FHA Loan with Wells Fargo Bank since XXXX. I have excellent credit and had a perfect payment history with them prior to COVID-19 last Spring. Below is my documentation of fraud that has been perpetrated on my account by Well Fargo. I can provide all of the relevant correspondence ( emails, documents, screenshots ) as needed that I reference in my complaint. I also have the contact information and direct extensions of most of the people named below. I am going to be as detailed as possible because I literally cant believe that consumers are being put through situations like the one below : I entered the 90 day FHA forbearance due to my wife 's COVID job loss ( XXXX, XXXX XX/XX/XXXX ). My wife lost her job at the XXXX she XXXX at when the XXXX shut down last Spring. Although she is not on the loan, we collectively pay bills with our income like most couples. I advised Wells Fargo that I only needed a couple of months to readjust my finances so that I could resume payments and not have any future impact to my wifes employment impact my mortgage payments. I asked if there was any negative impact to my credit and they advised me there was not. I proactively reached out to Wells Fargo in XX/XX/XXXX to advise of resuming my payments and ask for solutions on the {$5500.00} owed for the 90 days of mortgage payments that were in forbearance. I was advised the only option available was a FHA partial claim. I agreed to that process at that time and made my XX/XX/XXXX mortgage payment on time. Wells Fargo advised that I would receive paperwork in the mail. 

Wells Fargo sent me the wrong paperwork for a FHA partial claim of 4 months payments instead of 3 ( total of {$7500.00} ) at the end of XX/XX/XXXX. It took two conversations for Wells Fargo to admit their mistake in that they " missed '' my XXXX payment of {$1800.00} and would send new paperwork. Wells Fargo advised I was underpaying my mortgage and I had to remind them of the letter received in XXXX that stated my escrow for the prior year was overpaid and my new mortgage payments, effective XX/XX/XXXX, were {$1800.00} I received corrected paperwork in XX/XX/XXXX but the paperwork advised that there would need to be a lien placed on my house with the county for the {$5500.00} as part of the FHA partial claim. I was not advised of this stipulation prior and declined doing that for that amount. I asked Wells Fargo what other options are available to me to continue paying my current mortgage amounts and pay off the {$5500.00} forbearance amount over time. I had made my XX/XX/XXXX mortgage payment on time as well. I was advised that the Home Preservation Dept had greater options to help me and would be in touch. I paid my XXXX and XXXX mortgage payments of {$1800.00} on time. Wells Fargo also opened an Executive Case Number for me because they agreed that there seemed to be an issue with me being able resolve this and agreed with my frustration. Unfortunately, the form letter I received from the executive group basically said that I should contact Home Preservation. 

XXXX XXXX contacted me on XX/XX/XXXX and advised that she would be able to assist me with other options. I explained everything to her up to that point and that I was even willing to increase my mortgage payments or make a double payment every few months as good faith to resolve the debt. After filling out paperwork and supplying pay stubs, she advised me that all FHA options from Home Preservation would still require a lien placed on my home. I expressed concern at this time that Wells Fargo didnt seem to be providing options but rather just offering FHA options. I also expressed concerns that my account was showing $ XXXX past due when I had been making payments. She also noted that my account payments of now 4 months were in a suspense account but couldnt explain why. She advised she would remove the suspense and apply the mortgage amounts. I also made my XXXX mortgage payment of {$1800.00} on time. She advised me The Loan Modification Dept at Wells Fargo would have the flexibility to provide Wells Fargo solutions to the forbearance amount and that dept would have greater flexibility to help me. 

I was contacted by Loan Modification officer, XXXX XXXX, on XX/XX/XXXX. I re-explained the whole situation to him and he advised me of a FHA Hamp Loan approval that would extend my loan terms by 7 years to lower my mortgage payments and bring my escrow current. I advised him that those numbers didnt make sense and I had just received a letter my escrow was over-paid again and I had made my XXXX mortgage payment of {$1800.00} on time. I was not seeking a loan extension or to lower my payments. I was simply seeking a modification to increase my payments to take care of the forbearance amounts without being forced to come up with the full {$5500.00} all at once. I expressed concerns that it seemed like Wells Fargo was going to be making thousands of dollars more off of my account in a loan like that which would be self-defeating in helping a consumer that has been paying. He advised that I seemed correct in questioning the Math and that he would reach out to the Loan Modification Group to discuss the underlying reason. 

XXXX XXXX called me back on XX/XX/XXXX and advised me that the loan terms could only be extended and my monthly payment lowered due to FHA Guidelines. There is nothing on any of the FHA Forbearance websites or FAQs that states that is the case. I declined the FHA Hamp loan due to those ridiculous loan terms. He had me officially verbally decline it on the phone and advised it was cancelled in the system. I asked him about refinancing as an option. XXXX advised me that he spoke to his manager and they both agreed that I could pursue a refinance if I wanted to that would be able to roll that {$5500.00} into a new loan. He provided me the contact information for the Wells Fargo Refinance Dept. 

On XX/XX/XXXX, I spoke with XXXX XXXX XXXX in Wells Fargo Refinancing. I explained my situation to him in detail and advised the main reason of seeking Refinancing was to be able to roll the {$5500.00} 90 day COVID forbearance amount into a new loan to finally resolve the issue I have been attempting to for 6 months. Although XXXX couldnt guarantee the approval of a mortgage, he advised that there were no holds and nothing on my account that he foresaw would be an issue with the refinance. I filled out all of the paperwork and provided the {$500.00} home appraisal fee. He advised it may take up to 90 days and to continue to make my mortgage payments during the process. I thanked XXXX for Wells Fargo finally providing me a solution to the issue and he thanked me for being a great customer. 

The home appraiser canceled my scheduled appraisal for XX/XX/XXXX and advised me that the cancellation came from Wells Fargo. I reached out to XXXX again and got his voicemail. I stayed on the line and spoke with another woman, XXXX, and she advised that there were no notes in the system in regard to why my appraisal was canceled. She reached XXXX on the line and he advised me that it was a clerical error on Wells Fargos part in regard to my financial paperwork and that he would get the appraisal rescheduled. 

On XX/XX/XXXX I logged back into my account on Wells Fargo and saw there were several odd items being requested as part of my financial paperwork. My most recent W-2, which had already been provided and signed letter from my former company on why my pay didnt match, although the records I provided showed it did. I emailed ( I have a copy of the full thread and screen shots from my account ) XXXX and cced his boss, XXXX XXXX, asking what the issue was and I provided screenshots of 2 years worth of pay stubs. I expressed concerns as to why I was being asked to provide that info as it seemed strange for a refinance. 

XXXX replied to me via email on XX/XX/XXXX that after review, my refinance was denied because I was on a FHA forbearance and a trial HAMP repayment loan plan with FHA. I advised him that I declined the HAMP loan and we had discussed in detail about the FHA forbearance amount of {$5500.00} which was the main purpose of the refinance in the first place. XXXX provided me a screenshot of the decision in their computers ( I can provide ) that falsely stated that I was on the HAMP Trial Loan I had expressly declined on XX/XX/XXXX. He advised me that I could speak with his manager, XXXX XXXX, and that I would be receiving a refund for my appraisal fee of {$500.00} ( note : I did receive the refund for the {$500.00} ). 

I spoke with XXXX XXXX on XX/XX/XXXX and re-explained everything again to him and he advised that the guidelines are the guidelines and if I am on a FHA forbearance then the underwriters wont let me refinance with Wells Fargo. I asked why I wasnt informed of any of this earlier and he didnt have an answer. He offered me the solution of paying Wells Fargo {$5500.00} and then they could work with me. I expressed frustration at this whole situation and that I was going to look at how I could file a complaint. He said I was threatening Wells Fargo and I advised that it isnt a threat, this is a business transaction that clearly seems to be unfavorable to an existing customer in good standing. He also advised that I could attempt to get a letter removing my FHA forbearance and then they could use that letter to go back to the underwriters for another new attempt at refinancing. 

I spoke with XXXX XXXX at Wells Fargo on XX/XX/XXXX about obtaining a letter in regard to lifting my FHA forbearance with the intent of being able to refinance my mortgage, as per XXXX XXXX. I re-explained everything up to that point with XXXX. To date, XXXX XXXX is the only Wells Fargo employee I have interacted with who was helpful. He advised that even with the letter, I should call XXXX back to confirm that the underwriters wont decline my mortgage refinance based on the account being registered as delinquent if the forbearance is lifted. He also advised that I may need to make 3 monthly payments after that. He advised that Wells Fargo has been applying my payments to the last amount due and that the system was showing I was 3 months behind. XXXX XXXX also got XXXX XXXX from Loan Modification, whom I spoke to in XX/XX/XXXX, on the phone with him. 

I expressed my concern to XXXX XXXX that the mortgage underwriters declined my refinance based on a HAMP loan that I never agreed to and declined. XXXX XXXX confirmed to both XXXX and I that his notes from XX/XX/XXXX show that I did decline the HAMP Loan repayment due to the unfavorable terms and that it was cancelled in the system. He advised that I could disregard that. XXXX XXXX advised that if the FHA forbearance is lifted and letter provided, then I would be subject to late fees and collections until I pay the {$5500.00} to bring the account current. I expressed how crazy this all is and he advised that he would talk to his manager and call me back. XXXX XXXX advised that a new Executive case would be opened and understood my frustration. 

While waiting to hear back from XXXX XXXX, I called XXXX XXXX in Refinance back and asked about what XXXX XXXX had advised me in regard to the letter. XXXX said he didnt know but would ask the underwriters but I was essentially seeking special treatment. I advised I wasnt seeking special treatment, just confirmation on whether obtaining the letter would end up putting me in greater financial and credit jeopardy than before. He advised he would ask and get back to me. I have never heard back from XXXX. 

XXXX XXXX called me back and said that he confirmed with his manager if they provide the letter lifting the forbearance, that I would be reported to the credit agencies and subject to late fees and fines for being delinquent on my account. I advised I would have never sought relief if I knew I was going to be put through this. He advised to speak with the person that would contact me on the new executive case. He also acknowledged my statement that Wells Fargo has essentially created a business donut from department to department that is detrimental to the customer, especially one of 5 years. 

XXXX XXXX contacted me on XX/XX/XXXX and advised that they had opened Complaint ID # XXXX and that I had very valid points in regard to my situation. He advised that they would be in touch in the next couple of days. 

I was contacted by XXXX XXXX ( sp ) on the Executive Team on XX/XX/XXXX. I re-explained everything to him and advised that the resolution I was seeking is the ability to modify or refinance my loan, even at an increase in cost to me, so that I can pay down the {$5500.00} while continuing to make my monthly mortgage payments. Again, I offered to increase my mortgage payments for a set time that would allow me to pay off the FHA forbearance amount but not be reported. I also expressed concerns to the treatment I was receiving and the endless run arounds from various departments. He advised that while he couldnt guarantee anything, he had the authority to work with all departmental parties to see if we can resolve this for me and keep my business. He asked me to give him until XX/XX/XXXX to investigate. I agreed but advised my patience is running out. I paid a XXXX mortgage amount of {$1800.00} on time. 

On XX/XX/XXXX, I received a form letter from XXXX XXXX, XXXX of XXXX XXXX that my refinance request was denied because my Credit References on XXXX dont meet their requirements and the Credit Review showed late payments on past or present accounts ( we look for a history of on-time payments ). That seemed strange, so I pulled the free annual copy of my XXXX report. My XXXX score is XXXX, which is considered very good and the only detrimental past or present item on my XXXX report is the FHA Forbearance that Wells Fargo reported to XXXX in XXXX, XXXX in spite of them advising me that there would be no impact to my credit reporting. 

I spoke with XXXX XXXX again on XX/XX/XXXX and he advised that a letter was being sent to me investigated by both he and XXXX XXXX in regard to my complaint. In summation, Wells Fargo had no options for me at this time other than full payment of {$5500.00} or the partial FHA claim. He advised that I was on a FHA Hamp repayment plan and I reminded of the prior conversation with XXXX, there is nothing listed on my account when I log in and that would be fraud if I was. I advised that I wanted to remain on the FHA forbearance, I would make double payments for the next 90 days and I would then seek to take my business elsewhere. He apologized several times on the call for my situation and encouraged me to reach out to XXXX when I received the letter. 

I received the letter on XXXX, XXXX, XXXX via FedEx. The letter is rife with factual errors and also declares I am on a FHA HAMP partial loan and my mortgage payments are {$1600.00} a month starting XXXX, XXXX. I left XXXX messages delay to call me as this constitutes Fraud. 

I spoke with XXXX XXXX on XXXX, XXXX, XXXX and went section by section through the letter. I asked her how an organization can fraudulently place someone on a loan repayment that they expressly declined that would have resulted in thousands of more dollars in interest debt to Wells Fargo, was confirmed on a call with multiple Wells Fargo personnel that it was declined and deleted, and then use that unauthorized fraud as partial justification for declining a refinancing opportunity for a customer of 5 years with excellent credit that has now been resuming monthly payments again on time for the last 7 months? She could not and agreed with my serious concerns. She advised that she was opening two new executive investigation tickets and someone would reach out to me within 48 hours. I advised of my statement to XXXX XXXX that I would be making double payments for the next 90 days on my mortgage to bring the account current since Wells Fargo has actively prevented an equitable solution from being reached. I also advised her that I will be filing a complaint with the Ohio Attorney General, The CFPB, the XXXX  and FHA via HUD. 

I am astounded that the above type of treatment is what consumers are being put through due to COVID hardships. A lending institution needs to be held accountable for what they are stating on the phone and entering into their computer records. Fraud is unacceptable as a means to make additional money off of the consumer, especially ones that were in good standing as a client.