Consumer complaint received 2015-05-18
Product: Mortgage — Conventional fixed mortgage
Issue: Application, originator, mortgage broker — 
Company: WELLS FARGO & COMPANY (GA)

We requested pre-approval from Wells Fargo for a home mortgage loan. After submitting all of our paperwork, we decided to go with a local bank and informed the Wells Fargo branch manager, XXXX XXXX. The next two days, Wells Fargo continued to call us to match or beat our proposed loan with the local bank and provided us with written documentation to compare the loans. We received the GFE and disclosures and signed all of the documents required by Wells Fargo. We informed the local bank that Wells Fargo had a better offer and that we would go with Wells Fargo. Wells Fargo then induced us into opening a checking account with them to get an additional 1/4 percent off the interest rate that would match the local banks offer. We provided Wells Fargo with the real estate sales contract which had a 14 day financing contingency due XXXX/XXXX/15. After agreeing to proceed with the Wells Fargo loan, the branch manager and the loan processor refused to respond to emails or return phone calls over the next three days. We continued to inquire about the status of the appraisal and the underwriting as the following week our loan commitment was due. We had paid Wells Fargo {$450.00} for the appraisal and credit check on Monday XXXX/XXXX/15. After receiving no response from the branch manager or loan processor, we contacted our Wells Fargo financial advisor to inform seeking her assistance. We subsequently received an email from the branch manager indicating an appraisal was ordered XXXX XXXX/XXXX/2015 but no update on the underwriting or commitment letter status. We continued to email and call the branch manager and loan processor for a status update through XXXX XXXX/XXXX/15 with no response whatsoever. We again contacted our Wells Fargo financial advisor informing her that no one at Wells Fargo would respond to our repeated inquiries. Around fifteen minutes later at XXXX Friday, XXXX/XXXX/15, the branch manager called informing us that the managing underwriter would not approve the loan and stated that they would only underwrite the loan at XXXX the amount of the down payment stated in our GFE and loan documents. This was not the loan we bargained for nor was it the loan that was offered to us. We asked the branch manager why he did n't inform us there might be an issue earlier after repeated requests for updates due to our contingency, he had no response. The brank manager then stated that if we could come up with 20 % down, he could have the loan processed but could not guarantee that Wells Fargo could provide a loan commitment letter by Teusday XXXX/XXXX/15. We informed him that the terms of the GFE were nowhere neat what was now being offered and that even though we are able to come up with the difference in cash, the loan terms would need to be modified because we were bringing XXXX the amount of cash to the table. After realizing that Wells Fargo put us in an impossible situation that would cause us to breach the real estate sales contract, we informed the branch manager that we would mitigate any damages we could due to their fraudulent inducement and misrepresentation. We contacted the local bank that initially planned on using and informed them that we would retain their services and to expedite the loan process as quickly as possible to try to prevent a breach of the real estate sales contract. Due to the volatility of the bond market affecting the lending rates, we may no longer be able to obtain the 4.125 % interest rate. In addition, we will have to close the Wells Fargo checking account that the branch manager induced us to open which will negatively affect our credit scores. Further, we have requested a refund of the appraisal and credit check fees we already paid to Wells Fargo and have incurred additional fees to again lift our credit freezes as well as an addition {$100.00} fee to rush the appraisal.