Consumer complaint received 2026-01-04 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: WELLS FARGO & COMPANY
State: IL

Complaint narrative:
This complaint is submitted as a supplemental and updated complaint following a prior CFPB filing regarding Wells Fargo Home Mortgages handling of our loss-mitigation application and foreclosure proceedings.

Despite prior regulatory notice and court involvement, Wells Fargo has issued conflicting and irreconcilable communications regarding the status of the loan, foreclosure posture, and HUD involvement, creating ongoing risk of wrongful foreclosure and depriving us of due process. 

Background On XX/XX/XXXX, we submitted a complete Mortgage Assistance / Loss Mitigation Application, including all required documentation. 

Wells Fargo failed to provide any written acknowledgment, completeness determination, approval, or denial, as required by 12 C.F.R. 1024.41 ( c ) ( d ).

Wells Fargo later claimed documents were sent to an attorney on file, despite the borrowers being self-represented, with prior counsel formally withdrawn. No documents were ever served directly on us.

Foreclosure and HUD-Related Communications While loss mitigation remained unresolved, Wells Fargo scheduled foreclosure activity, raising dual-tracking concerns under 12 C.F.R. 1024.41 ( g ). 

On XX/XX/XXXX, foreclosure counsel XXXX XXXX XXXX XXXX, acting on behalf of Wells Fargo, issued a Notice to Occupants of Pending Acquisition referencing a HUD/FHA case number and advising that title was expected to transfer to Wells Fargo and potentially to HUD following foreclosure Tricey House Document ( 1 ).

The same correspondence included HUD Occupied Conveyance procedures, forms, and instructions applicable only after foreclosure and conveyance, including : Requests for HUD approval to remain in the property Conditions for temporary continued occupancy Employment verification and rental qualification requirements XXXXXXXX XXXX Document back page These communications represent that foreclosure and HUD conveyance are proceeding or imminent, and that the borrowers rights are limited to post-foreclosure occupancy determinations. 

Conflicting Wells Fargo Representations XXXX days later, on XX/XX/XXXX, Wells Fargo issued a separate letter stating that a mortgage assistance application was under review, that additional time was needed, and that loss mitigation options were still being evaluated. 

That letter did not disclose : Whether the application was complete or incomplete What documents were missing Whether foreclosure activity had been paused That foreclosure counsel was simultaneously issuing HUD conveyance notices As a result, Wells Fargo and its agents issued materially conflicting representations : One set of communications treats foreclosure and HUD conveyance as imminent and unavoidable ; Another represents that loss mitigation review remains ongoing.

These positions can not both be true.

Regulatory Concerns This conduct raises serious concerns regarding : 12 C.F.R. 1024.41 ( c ), ( d ), and ( g ) failure to properly process loss-mitigation applications and prohibition on dual tracking RESPA servicing requirements for accurate, consistent, and transparent borrower communications Potential misrepresentation to HUD and to borrowers regarding foreclosure status Deprivation of due process and inability to exercise appeal or review rights Issuing HUD Occupied Conveyance materials while simultaneously claiming loss mitigation is under review is misleading, prejudicial, and incompatible with Regulation X. 

Recent Escalation On XX/XX/XXXX, we submitted a Qualified Written Request ( QWR ) seeking clarification, correction of servicing errors, and reconciliation of these conflicting communications. 

A HUD complaint has been submitted concurrently regarding potential FHA servicing violations, including inconsistent representations regarding foreclosure and HUD conveyance. 

As of the date of this complaint, Wells Fargo has not reconciled these conflicts or provided a clear, compliant explanation of the loans true status.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation