Consumer complaint received 2016-10-07
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Application, originator, mortgage broker — 
Company: WELLS FARGO & COMPANY (MD)

It is in connection to a loan application process taken XX/XX/XXXX and XX/XX/XXXX with Wells Fargo Loan Officer XXXX XXXX, XXXX # XXXX. I did not learn of this fraud until XX/XX/XXXX when I discovered the close relationship between him and his affiliated home builder. Their relationship is more than business associate ; they together serve board of XXXX XXXX XXXX XXXX. They are also longtime friends. This fraud begun XX/XX/XXXX when XXXX XXXX 's affiliated builder, XXXX XXXX , XXXX sent us to him. XXXX XXXX falsified the assets and incomes and submitted the fraudulent loan application to Wells Fargo home mortgage for an approval for a loan without my and my husband 's knowledge. On the fraudulent loan application Defendant intentionally miscalculated to inflate the total assets by over {$33000.00} and masked the miscalculation in other section of total sum. He also falsely inflated the one of the incomes ( Social Security Benefits ) by over {$7200.00}. When I questioned the Social Security Income that did not reflect our actual incomes, XXXX XXXX lied to us that any Social Security Benefit is required to grossed up per the HUD and IRS rules. He knew that my Social Security Benefits is a taxable income therefore it can not be grossed up because of the tax information I provided about my Social Security Benefits. Instead, Defendant falsely inflated Social Security Benefits XXXX percent more than the standards required by the HUD and IRS rules. What 's more, unbeknownst to us, Loan officer XXXX XXXX manipulated Debt to Income ratio ( DTI ) by omitting a debt that is already disclosed on the loan application to bring the DTI ratio down to under XXXX % in order to approve us for a loan. This fraud was hidden in plain sight on the loan application that we had no way to detect or suspect any fraud because all of the financial information on the loan application matched what I had provided to XXXX XXXX. Because of his close relationship with his builder, he knew the real estate contract had a clause where I would lose the deposit of {$25000.00} should I fail to obtain the financing and go in default. With his false statements and false representation, we were led to believe that we are qualified and signed a real estate contract and deposited {$25000.00} with his affiliated builder. 

XX/XX/XXXX during the course of loan process, when we were unable to sell our existing home for down payment, Defendant offered to get us additional loan knowing that with our financial condition, we were no way be qualified for additional loan. We rejected the offer. XXXX XXXX then declared we do n't proceed the loan application. XXXX XXXX and his builder, dumped us by terminating the real estate contract. Clearly, XXXX XXXX XXXX XXXX concealed his fraud work on the loan application but led us to believe that we were failing to secure loan and lost deposit of {$25000.00} by rejecting a bridge loan. As I discovered, with our actual assets, incomes and DTI ratio, we had never been approved for a loan in the first place. With his fraud and deception, we were approved for a loan and then lost {$25000.00} to his friend, the Builder. He was doing this fraud to give the benefits to his friend, XXXX XXXX as well as himself. If I had known of this fraud and the fact that we had never been approved for a loan, we would never have lost our deposit of {$25000.00}. Clearly, this is a scam.