Consumer complaint received 2020-07-01
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: WELLS FARGO & COMPANY (NJ)

Below is a timeline of events along with a summary of our experience working towards our PMI cancellation request with Wells Fargo. 

XX/XX/XXXX : By this time since we purchased our first home in XX/XX/XXXX, we had made significant improvements to it that easily cost us tens of thousands of dollars. Improvements included but were not limited to having a new roof installed, an oil to gas conversion, electrical work throughout the house that included adding a new electrical panel, insulation throughout the home, a bathroom renovation project that included expanding a half bath to a full bath, along with a large number of other cosmetic updates throughout the home. All of these decisions for home improvements were part of our long-term financial strategy to increase equity in the property that would easily exceed the requirements necessary to remove the PMI from our mortgage payment while also improving resale value. This was the day we contacted Wells Fargo to initiate the PMI cancellation request process. 

XX/XX/XXXX : We completed the Appraisal Order Authorization form we were advised to complete and selected the option to have an expert appraisal of the home, which we complied with. 

XX/XX/XXXX - XX/XX/XXXX : We received notification that our appraisal order was completed on XX/XX/XXXX. Our appraisal was completed by a third party, XXXX XXXX from XXXX XXXX XXXX XXXX XXXX XXXX  XXXX. This was the appraiser selected by Wells Fargos ' vendor, XXXX. To our surprise, our home was appraised significantly lower than expected. I emailed XXXX about my concerns with the appraisal that was done and they advised me to contact Wells Fargo about next steps. I contacted Wells Fargo about the appraisal dispute process and to inquire about the short-term payment relief option for COVID 19. The Wells Fargo agent had  informed me that a letter has not gone out yet regarding the outcome of my request to cancel PMI, however, since I was contacting them now he would get a letter sent to me about my option to follow through with Wells Fargo 's Property Valuation Dispute process. While reviewing this I asked him about the short-term relief option for COVID 19, to which he asked me if I was impacted. I explained to him that we were because we were not prepared financially for COVID 19, we had made all these improvements to our home with the goal of getting the house in order for our expected newborn arrival and with the financial goal to have our PMI removed, and now found ourselves in financial hardship as a result of an unexpected worldwide pandemic. The Wells Fargo agent went into detail explaining how this program works, which was a 3 month suspension of our mortgage payments that could be added to the end of our loan term. I asked him several times during this conversation, if this would be considered a late or past due payment and also asked if there were any other penalties for taking advantage of this option, to which he informed me that there wouldn't be any penalties and very clearly informed me it would not be considered a past due /late payment. Please bear in mind that we were informed at the beginning of the call that all calls were being recorded, so there is recorded proof of our conversation. He then asked if I wanted to have the XX/XX/XXXX payment suspended since it would be one of the qualifying months under the COVID short-term relief option and I agreed to do so. Given the information provided on this call, my takeaway was that I would be able to use this program to get caught up financially, while at the same time continue pursuing the option to have the PMI removed. At no time was I advised that this would have a negative effect on the PMI removal process. 

XX/XX/XXXX : This was the statement letter date from Wells Fargo that explained our option to pursue Wells Fargo 's Property Valuation Dispute process. 

XX/XX/XXXX : This was the statement letter date from Wells Fargo that explained the short-term payment relief option for COVID 19. In this letter it states the three month mortgage payment suspension and that these missed payments include the option to have them moved to the end of the loan. Furthermore, it stated unless we require further relief, we will need to resume our regular mortgage payment schedule beginning on XX/XX/XXXX. This letter very clearly stated it would not be reported as past due and no late fees would be incurred. 

XX/XX/XXXX : This was the statement letter date from Wells Fargo that explained our PMI could not be cancelled because our property was under-appraised. I would estimate this letter was possibly received about a week later, however, it should be documented in Wells Fargos call recorded history because that is the date I immediately called Wells Fargo to inquire about next steps to dispute the appraisal. 

XX/XX/XXXX : I completed the Property Valuation Dispute Form and emailed that along with corresponding supporting documentation to the email address provided on the XX/XX/XXXX letter ( XXXX ). There were 5 emails in total given the size of supporting documents. I also called Wells Fargo at this time to ensure it was received, which I was told may take a couple business days to show up in the system. 

XX/XX/XXXX : My husband and I called Wells Fargo to follow-up on my dispute request and I resent the emails from XX/XX/XXXX along with one additional email for supporting documentation. While we understood this would take time to review, we never received confirmation that the documents were received until this call when we pleaded to have someone from the PMI department to confirm it was received. 

XX/XX/XXXX : I received an updated appraisal report from XXXX, which appraised our home in accordance with Wells Fargo 's policy to remove the PMI less a couple hundred dollar difference that we were prepared to pay. 

XX/XX/XXXX : This was the statement letter date from Wells Fargo that explained our PMI could not be deleted because we did not have a good payment history ( short-term payment relief option for COVID-19 ) and as such our recently completed appraisal could not be used. Beginning on this date to present, we had several very long calls with members of Wells Fargos corporate office team that reviewed our case XXXX, XXXX, and XXXX 's  manager, XXXX XXXX. It is only up until discussions with this team, that we were ever told this " short-term relief '' was considered a " forbearance '' and that our " three month suspension '' of mortgage payments were considered " late payments on the loan. '' THE WORD " FORBEARANCE '' was never used prior to these calls with management. XXXX informed me that what was stated to me on the calls and in the letter provided was that these would not be reported as late to the credit reporting agencies, but that didn't mean it was not considered late on the loan. This was never EVER disclosed to us this way and later in this letter I will explain why we feel completely misled on this. 

We have spent numerous hours during this pandemic working with Wells Fargo, but before I detail this, I would like to inform you of the consumer Wells Fargo is actively hurting by failing to remove the PMI. I XXXX   our XXXX XXXX XXXX at our local hospital on XX/XX/XXXX while wearing a N95 mask. He weighed a whopping XXXX when I gave XXXX   to him. Because I had spiked a XXXX the day before in the hospital, I had to be transferred to the XXXX section of the hospital for the remainder of my time in XXXX. Because I XXXX  XXXX XXXX XXXX  XXXX  during XXXX, I quickly became XXXX. My XXXX XXXX   skyrocketed  to over XXXX XXXX, my XXXX XXXX was XXXX XXXX ( XX/XX/XXXX ),  and I looked like a ghost before anything was done about it. It took my husband to sound the alarm to all the doctors and staff before action was taken, which ended up with me getting a XXXX XXXX. In case it is not clear enough, I spent the duration of my time at the hospital, XXXX  for my XXXX  alongside with my husband doing the exact same for me. I was finally discharged in  stable condition that Sunday. Just days later while recovering at home on XX/XX/XXXX, I got XXXX XXXX XXXX, which to this day I still have not recovered from. You may think, why am I sharing this with you? I am sharing this because : DESPITE the numerous hours I spent waiting on calls to speak to someone at Wells Fargo and actually talking to agents from every area involved that I could at Wells Fargo, the hours spent following Wells Fargo 's process in my final weeks of XXXX to have our PMI canceled and to dispute the appraisal and then to dispute the fact that we are told now none of it ever mattered because we participated in the short-term relief program you Wells Fargo failed to disclose would impact our PMI cancellation request ; DESPITE the time my husband and I were too busy XXXX XXXX XXXX XXXX at the hospital, the time since where to this day I still have not recovered both XXXX  and XXXX ; DESPITE the time since we first got the mortgage in XX/XX/XXXX to present day where we responsibly made every mortgage payment on time AND also made very significant improvements to our home that got our property to finally appraise at the 20 % equity needed to remove the PMI ; DESPITE that Wells Fargo 's lead manager in the corporate office that reviewed our case, XXXX XXXX, willingly admitted that feedback had to be provided to agents involved because of all the numerous missed opportunities where someone should have advised us about the adverse consequences from pursuing the COVID 19 short term relief options that were presented to us but failed to do so .... 
IN THE END NONE OF THIS MATTERED! 
As such, Wells Fargo is hurting an extremely hard working responsible couple from XXXX, NJ that thought they were doing everything right to get this PMI removed. Wells Fargo deceived us, Wells Fargo misguided us, and our trust in Wells Fargo Bank has been totally violated. We are now being told a letter from late XXXX explained all of this to us. Which letter that I outlined above is this in reference to? XX/XX/XXXX? XX/XX/XXXX? AFTER our XX/XX/XXXX mortgage payment was already suspended? Let me remind you, the reality of the world we ALL faced as well with huge delays in receiving mail and again me being in my final weeks of XXXX, and going through XXXX and back after XXXX  ... when during this pandemic, when during our XXXX and XXXX   XXXX  did I receive this message loud and clear? NEVER. And now the latest we are being told is even with the knowledge that we are resuming mortgage payments beginning with XX/XX/XXXX, this too does not make a difference. Adding insult to injury we are being told we now possibly have to wait maybe 12 or 24 months before we can re apply to have our PMI removed KNOWING that the equity has already appraised at 20 % because of all the work we did to get it there before this pandemic hit. As a result of our appraisal dispute in accordance with Wells Fargo 's policy to remove PMI, we are in fact eligible to have it removed because the appraised value was now less than 80 %. So then Wells Fargo is telling us to throw away money for 12 or 24 months because Wells Fargo failed to disclose. And Wells Fargo had so many opportunities to do so at that. 

I can not imagine, I can not fathom that we are the type of family Wells Fargo 's guidelines intended to damage, to penalize for this duration of time, when our only critical mistake was to trust Wells Fargo and to trust in what Wells Fargo promised to us. The promise Wells Fargo made is if our home equity appraised at 20 % of its value, the PMI would be removed. The promise that Wells Fargo made to us was that 3 of our mortgage payments would be suspended and added to the end of our loan term as part of the COVID short-term relief program without any penalty. Wells Fargo is short on one of those promises. That is the promise to remove PMI, and there is no excuse to not deliver on Wells Fargo 's end. Wells Fargo has an obligation too, to the hard working American people  like us to take accountability and do the right thing when it is called for. I am writing this very lengthy letter while caring for my XXXX, completely sleep deprived, unable to form a complete smile, in between feedings, pumping, and diaper changes, because I fundamentally believe that Wells Fargo 's failure to honor what they lead us to believe was something we would not be penalized for is wrong. I hope that Wells Fargo is not that low. Because if Wells Fargo really is, I promise we will ensure our story spreads like wildfire using every news outlet, congressional and public representative, media, and fellow citizenry, in hopes that the world will know the truth. The truth that Wells Fargo made misleading statements and failed to disclose the negative consequences of pursuing the COVID -19 relief benefit. We are just one family but I am sure there are many more and we will not stop challenging this decision and have our voices heard if need be. I can guarantee that although we may not be able to trust that Wells Fargo will deliver as promised, Wells Fargo can trust us to deliver on our promise to pay our mortgage as promised and conform in accordance with our promissory note. In conclusion, we respectfully request that Wells Fargo remove our PMI given that we appraised in accordance with its policy and have always maintained a good payment history.