Consumer complaint received 2024-08-01 00:00:00
Product: Mortgage — Conventional home 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: NJ

Complaint narrative:
Unethical business practices, mishandling of crucial documentation, and misleading information. 

In XXXX, I applied for a XXXX XXXX Streamlined Loan Modification or XXXX XXXX Standard Loan Modification through Wells Fargo, who services the mortgage for a property owned by XXXX XXXX. 

In response, Wells Fargo sent a letter dated XX/XX/XXXX, outlining past denials in XXXX and XXXX and referencing a loan modification approval in XX/XX/XXXX without specifying its naturewhether it was a XXXX XXXX  Streamlined Modification or a XXXX XXXX Standard Modification. 

After carefully reviewing the loan modification document from Wells Fargo, it is evident that the Loan Modification Agreement provided did not meet XXXX XXXX 's requirements and did not include signatures from Wells Fargo representatives. This lack of transparency created a misleading impression, leading me to feel deceived by Wells Fargo 's practices. 

To provide context, I would like to outline the specific requirements for XXXX XXXX Standard Modification and Streamlined Modification programs, which Wells Fargo was obligated to follow : XXXX XXXX Standard Modification Requirements : 1. Capitalization of Arrearages : All past-due amounts, including interest, taxes, and insurance, are to be added to the unpaid principal balance. 

2. Interest Rate Adjustment : - For fixed-rate mortgages : The modified mortgage loan interest rate should be set to the borrowers current mortgage loan interest rate. 
- For adjustable-rate mortgages ( ARM ) or step-rate mortgages : If the current interest rate is less than the current XXXX XXXX Standard Modification Interest Rate , the modified loan interest rate should be set to the current XXXX XXXX Standard Modification Interest Rate . If it is greater or equal, it remains the same. 

3. Term Extension : The term of the mortgage can be extended up to 480 months ( 40 years ) to achieve a payment reduction. If the 480-month term provides a payment reduction less than 20 %, a 360-month term should be used if it achieves at least a 20 % reduction.

4. Evaluation Notice and Trial Period Plan : Borrowers must be provided with an Evaluation Notice and a Trial Period Plan, detailing the terms and payment obligations during the trial period. 

*XXXX XXXX Streamlined Modification Requirements : 1. Eligibility : The property must be a primary residence, second home, or investment property. The mortgage loan must be at least 90 days delinquent. 

2. Capitalization of Arrearages : Similar to the Standard Modification, all past-due amounts should be added to the unpaid principal balance. 

3. Interest Rate Adjustment : The modified mortgage loan interest rate is determined based on the current XXXX XXXX Standard Modification Interest Rate if the loan is an ARM or step-rate mortgage. Fixed-rate mortgages retain their current interest rate. 

4. Term Extension : The term can be extended up to 480 months to reduce monthly payments. A 360-month term may be offered if it results in a significant payment reduction.

5. Streamlined Process : No documentation of financial hardship or income verification is required. Servicers are to offer the modification based on the borrowers delinquency status. 

6. Trial Period Plan : Borrowers must complete a trial period plan to demonstrate their ability to make the modified payments. 

Despite the existing clear guidelines in XXXX, it seems that Wells Fargo 's handling of my modification request lacked transparency and adherence to the established XXXX XXXX loan modification requirements and guidelines. I faced unjust denials and inadequate communication, which had significant adverse effects on both my financial stability and property ownership rights. 

Did Wells Fargo adhere to XXXX XXXX 's guidelines when providing me with a loan modification for the property at XXXX XXXX XXXX, XXXX NJ XXXX in XXXX? In XXXX Wells Fargo was the servicer for the property owned and backed by XXXX XXXX. 

I strongly believe that Wells Fargo engaged in deceptive and unethical practices by giving me their own standalone loan modification for a XXXX XXXX owned property on XX/XX/XXXX, without adhering to XXXX XXXX 's servicing guidelines. 

Instead of following XXXX XXXX  's procedures, guidelines, and providing me with a XXXX XXXXsponsored Loan Modification agreement, Wells Fargo 's decision to present their own independent loan modification agreement without a trial period can be viewed as a bait-and-switch tactic. Which is unethical, misleading, and mishandling of my crucial loan modification documentation requests. 

I demand transparency, accountability, and prompt remedial action to address the injustices I have experienced as a result of the bank 's misleading, unethical behavior and wrongful foreclosure and deeds-in-lieu actions I am prepared to pursue all available avenues, including legal recourse, to seek redress and ensure that justice is served. It is incumbent upon Wells Fargo to cooperate fully and work towards a fair and equitable resolution that upholds the principles of integrity and consumer protection. 

I anticipate your prompt and comprehensive response to this matter. Thank you for your attention and commitment to resolving these critical issues. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX

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