Consumer complaint received 2020-07-23
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: WELLS FARGO & COMPANY (NJ)

My FHA mortgage ( originated XXXX ) is currently held by WellFargo bank, and i have a perfect record of payment. In XX/XX/XXXX, i began seeking a refinance *with* WellsFargo for the FHA loan that they hold to take advantage of the relatively improved rates available at that time ( ~3.75 % ). 

The process began smoothy enough considering I am steadily employed, have an exceptionally high credit score ( 800+ ), sufficient cash on hand to close a refinance, and a perfect record of payment on the existing WellsFargo FHA loan. We locked our rate, at 3.5 %, which included some discount points ( at a cost of XXXX {$2400.00} ) with an expiration date set for XX/XX/XXXX. 

We anticipated that we would be able to close our loan relatively quickly, being an existing customer, with a perfect track record, and all the necessary supporting documentation. Then COVID happened, and response times plummeted. 

Prior to this, we had been paying our mortgage on a weekly schedule and paying extra principal of approximately 150 $ every month, for years. So, at the time when COVID hit, our mortgage was significantly ahead of where it would have been if we paid only the minimum monthly payment. Because there was so much uncertainty in the marketplace, in XXXX, we decided we would switch from paying weekly to paying monthly, and had WellFargo make that change in their system. We discussed it on the phone, and Wells Fargo scheduled our next automatic payment date ( which they determined ) to be XX/XX/XXXX. Around XX/XX/XXXX I noticed that our mortgage payment had not been processed as expected, so I called WF and learned that my FHA mortgage was in forbearance. I told them i had never requested a forbearance ( verbally or otherwise ) and that I had not been notified that it was in forbearance. 

I was told that as part of the CARES / COVID recovery Act all FHA mortgages were being placed in forbearance ( whether requested or not ). I was also told that because my loan was in forbearance, my automatic payments had been canceled. However, I was never notified of that change either. I asked for my loan to be moved out of forbearance because i had no need for it, but I was told that was not possible. I was also told it was not possible to set up automatic payments while my loan was in forbearance, but but that I could continue to make payments manually. Fortunately, my mortgage was still within the grace period for payment in XXXX, so i immediately made the payment manually and my account remained current. I continued to make manual payments for the full amount of the mortgage, and my loan has remained current and fully paid. 

Finally, at the beginning of XXXX, I was given the option ( online ) of ending the " COVID relief '' ( that i had never requested ), and i moved my loan out of forbearance and reinstated my automatic payments on my account. 

The entire time, I had continued to seek a refinance with WellFargo. I provided updated, documentation and other information, paid for title searches, and appraisals. I would communicate efficiently and in a timely manner, however, their response times were ... abysmal. I would sometimes never hear back about my inquires, or it would take weeks to get responses to simple request for information. I have plenty emails where I ask for updates on when my loan would be ready to close ( its been 4-5 months at this point ) and often received " we're putting a rush on this '' or " its being escalated '' but never received any notification that my loan was cleared to close. 

During this time, i received a formal notification that my rate lock would be expiring on XX/XX/XXXX and i had three options : Cancel the loan, pay for a rate lock extension, or let my loan return to a floating loan with the option to re-lock after waiting 14 days. Because the interest rates had continued to improve over the terms i had originally been offered, i requested to let my loan float with the market with the intention of re-locking after 14 days, which i had several correspondences with them about. 

After waiting the requisite 14-days, i requested Wells Fargo contact me to reprice the loan and initiate a new rate lock. Given the market conditions, this would have saved me a significant amount of money in discount points and total loan interest costs. I emailed frequently, asking for someone to call me back, but never received call back from a loan officer until well into XXXX, after i started emailing and calling people 's supervisors. I was then informed that WellsFargo had decided to extend the previous rate lock ( at the higher interest rate ), without my consent, against my specific wishes, and without my knowledge. In fact, this contradicted what i had been told several times ( that my rate lock had expired on XX/XX/XXXX ), both verbally and in writing. They also tried to suggest that they would pay the 'fee ' for extending my expired rate lock and that i could buy down the interest rate further to what was currently being offered ( at my own expense ). Wells Fargo checked my credit a second time because the first one had 'expired ', adding another hard inquiry to my credit report and pushing my credit below 800. 

It had been a full 6 months with WellsFargo, they placed me into a forbearance i did not ask for, the canceled my automatic payments without informing me, impacted my credit, and there there was STILL no clear answer on when the loan would be able to close. The last straw was the chicanery with the rate lock, so i decided to pursue financing with another lender. 

I emailed Wells Fargo to inform them I was canceling the loan and received a confirmation in THREE MINUTES via email, and within days via snail mail. I guess when it serves them - for me to continue paying a higher interest rate loan that they service - they are responsive. Unfortunately, they deactivated my online loan tracker, so i no longer have access to the internal correspondence between us ( most documents were delivered electronically ), but i have plentiful emails where I express my concerns and ask for assistance with little to no response. 

Now, I am working with another lender who has asked for significant documentation related to the forbearance ( that i never asked for ), as well as other irregularities that wells fargo created when my payments went from weekly to monthly, and again when I was able to remove my loan from the ( unrequested ) forbearance back to making automatic payments ( despite continuing to make all required payments during that time ). In short, this has greatly complicated my path to a simple refinancing - something a person with a perfect payment history, including significant overpayment of the loan, high credit score, fully employed, and no other significant debts. 

Not to mention this has cost me money in attorney fees, appraisals, etc.