Consumer complaint received 2020-06-11 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: WELLS FARGO & COMPANY
State: TN

Complaint narrative:
After losing a large portion of my income due to the coronavirus pandemic, I called on XX/XX/XXXX of this year to inquire about payment deferrals that had been advertised by Wells Fargo. I spoke with XXXX, who offered the option to skip three monthly payments, and add three months to the end of the term in XXXX. I asked very careful questions about the terms of this offer, and she mentioned nothing about forbearance, review of income and spending, or encouragement to make partial payments during this term. I asked if there would be any negative effect to my credit report, and she said no. I asked if there were any other negative effects that I might not have considered, and she said only adding three months to the end of the term. She explained that I would receive a single point of contact who would reach out to me. I accepted this offer, believing all of this to be true.

After not receiving a point of contact after one month, I called Wells Fargo and waited an hour and 38 minutes before speaking to XXXX XXXX, who was willing to provide me with his phone number and extension. He explained the terms of my payment suspension, and the terms were very different than advertised in XXXX. 

It was MY responsibility to contact Wells Fargo to arrange payment or deferment of my monthly payments. I asked if I was still able to skip three monthly payments and add them to the end of the term, and he said probably not. He suggested making partial payments during the three-month payment suspension. He also explained that deferring the payments would require a review of my income and spending, which I explained would be complicated by my receipt of a small business loan as a sole proprietor. He also explained that the FHA has restrictions that may prohibit Wells Fargo from fulfilling the terms of the offer as advertised in XXXX by XXXX. I also learned that, despite our conversation on XX/XX/XXXX, that my loan was in forbearance. 

On XX/XX/XXXX, I made a partial payment of {$500.00}, rather than the normal monthly amount of {$1100.00}. This amount was set aside by Wells Fargo since it was not a full monthly payment, and my next bill showed a full, two-month amount due. On XX/XX/XXXX, I prepared to make a lump payment of {$2800.00} to bring payments current through XX/XX/XXXX. I was told by XXXX that this payment would bring my account current through the month of XXXX. When I made this {$2800.00} payment on XX/XX/XXXX, I later received a bill that showed {$1100.00} ( one month ) of my payment had, once again, been set aside in unapplied payment. The bill showed ANOTHER {$1100.00} due as of XX/XX/XXXX, which would mean that I would be making FOUR monthly payment amounts in the span of THREE months, all in the name of coronavirus relief. 

I called XXXX XXXX on XX/XX/XXXX to resolve this billing mistake. I asked why this amount was marked as unapplied funds rather than applied to the XXXX bill, as indicated by XXXX. He said he was not sure. He promised an email and letter showing that these unapplied funds had been moved to cover the XXXX payment. I did eventually receive an email and letter, but the wording was very vague about the status of the {$1100.00} payment. 

At this point, it appears that my loan payments are back on track and the loan will be moved out of forbearance as of XX/XX/XXXX, but only after I have paid ALL of the amount that was originally offered for deferment, and spending hours of time contacting Wells Fargo and dealing with false claims and unapplied payments. Were now back to square one, however, I have received none of the needed RELIEF during the early months of the coronavirus recession.

I have never missed a payment in ten years prior to the coronavirus pandemic. If Wells Fargo will hassle a customer who is making extra payments to bring the status current, how are they treating customers who truly are unable to make payments due to the government order to stay home from work? If Wells Fargo has been shown to renege on offers made to a customer who has never before needed assistance, how will they fulfill promises to families who are needing continued modification? 

Add to these concerns that the mortgage industry has received generous funding through the CARES Act, with the understanding that the industry will use these funds to relieve the burden of those customers who have lost work through no fault of their own. The attempt to offer a reprieve and then squeeze additional money from customers is predatory. It is also worth investigation whether Wells Fargos use of CARES Act funds constitutes fraud. 

Please hold the mortgage industry accountable for fairness in lending, and application of the funds allotted to them through the CARES Act.

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