Consumer complaint received 2025-11-01 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: TX

Complaint narrative:
Failure to Disclose Undisclosed Junior Lienholder and Warehouse Line of Credit Involving My Property Summary of Complaint I am filing this complaint regarding Wells Fargos failure to disclose or provide proof of a supposed junior lienholder, XXXX XXXX XXXXXXXX XXXX XXXXXXXX, and the involvement of XXXX XXXX XXXX XXXX through a warehouse line of credit tied to my property. 

I had no knowledge of either of these entities or any junior liens on my account prior to foreclosure. I only learned of their involvement after the foreclosure when XXXX appeared as the purchaser at the sale. Wells Fargos statements to regulators now suggest that XXXX was a junior lienholder, yet they have produced no proof of such a lien. 

If XXXX and XXXX XXXX XXXX XXXX held any financial interest in my home prior to foreclosure, that information should have been fully disclosed to me under both state and federal law. 

Facts My loan was serviced by Wells Fargo, and there were no junior liens recorded on my property. 

Wells Fargos response to my prior CFPB complaint stated that, if XXXX held a lien, it would have been a junior lienholder. 

I was never informed of any such lien or warehouse line of credit involving XXXX XXXX XXXX XXXX or XXXX. 

XXXX later appeared at the foreclosure sale and acquired the property indicating prior knowledge or financial connection. 

I have requested written proof of this alleged lien or credit relationship, but Wells Fargo has failed to produce any documentation. 

Violations Texas Property Code 51.002 Failure to disclose all lienholders of record and provide accurate foreclosure notices. 

RESPA ( 12 U.S.C. 2605 & 12 C.F.R. 1024.36 ) Failure to accurately respond to borrower information requests and disclose the true parties holding an interest in the loan. 

Texas Deceptive Trade Practices Act ( DTPA ) Misrepresentation or omission of material facts in a consumer financial transaction. 

Possible collusion or self-dealing between the loan servicer and a third-party investor, violating the duty of good faith and fair dealing. 
Fair Resolution Requested I am requesting that the regulatory agency : Require Wells Fargo to produce all documentation and agreements evidencing any junior lien, warehouse line of credit, or other interest involving XXXX XXXX XXXXXXXX XXXX XXXXXXXX or XXXX XXXX XXXX XXXX ; Investigate whether these undisclosed relationships constitute fraudulent or conflicted foreclosure practices ; Compel disclosure to affected borrowers if similar transactions occurred statewide ; Provide corrective action, including restitution, release of wrongful liens, and compensation for financial and emotional harm. 

Optional Add-On for Your Submission : I strongly urge investigators to review other foreclosure transactions where XXXX XXXX XXXXXXXX XXXX XXXX XXXXXXXX and XXXX XXXX XXXX XXXX appeared as participants or buyers. There are likely hundreds of properties in Texas with similar undisclosed warehouse credit arrangements, leaving homeowners unaware that their properties were leveraged behind the scenes.

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