Consumer complaint received 2025-10-16 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Fees or costs after closing
Company: WELLS FARGO & COMPANY
State: TN

Complaint narrative:
From XXXX to XXXX, Wells Fargo Home Mortgage violated a Granted Order by Honorable Judge XXXX XXXX from the Bankruptcy XXXX in the XXXX XXXX XXXX XXXX. 

On XX/XX/XXXX, XXXX XXXX XXXX valued the Plaintiff 's Property XXXX XXXX XXXX, XXXX, TN XXXX. This order valued the property XXXX XXXX XXXX at {$75000.00} with a fixed 5.25 % interest rate loan for XXXX  years. The monthly payment was fixed at {$370.00} a month. 

Wells Fargo Home Mortgage XXXX highlights undisclosed fees that are added randomly to increase the principal balance, while the monthly payments increase annually. 

XXXX. The Annual Mortgage Interest Statement from WELLS FARGO HOME MORTGAGE for XXXX reflects that the Plaintiff paid a monthly payment of {$920.00} in XXXX. The balance owed was {$110000.00}. Based on reverse calculations, the interest rate was approximately 8.125 % of {$110000.00}, the original amount the Plaintiff borrowed. The XXXX XXXX for XXXX highlights {$1100.00}. 

XXXX. The Annual Mortgage Interest Statement from WELLS FARGO HOME MORTGAGE for XXXX reflects that the Plaintiff paid {$1000.00} a month for the Mortgage plus {$250.00} for the Escrow ( tax + ins ) making the monthly payment no longer {$920.00} but increased to {$1200.00}. The balance owed is {$110000.00}. Based on reverse calculations, the interest rate increased from 8.125 % to 11.3 %. The XXXX XXXX for XXXX highlights {$1100.00} XXXX. The Annual Mortgage Interest Statement from WELLS FARGO HOME MORTGAGE for XXXX reflects that the Plaintiff paid {$1000.00} a month for the Mortgage plus {$250.00} for the Escrow ( tax + ins ), making the monthly payment no longer {$920.00} but increased to {$1200.00}. The balance owed on XXXX XXXX XXXX XXXX, XXXX, TN XXXX, went from {$110000.00} to {$240000.00} from the years XXXX to XXXX based on the annual statements. The XXXX did not withdraw equity or refinance the property for any reason. The XXXX annual mortgage statement identifies that WELLS FARGO HOME MORTGAGE added an undisclosed Fee of {$120000.00} to the {$110000.00} original principal balance. This fee of {$120000.00} was improper, fraudulent, and not adequately disclosed to the Plaintiff. This is a pure example of WELLS FARGO HOME MORTGAGE adding Float Fees to the original principal balance of {$110000.00}, creating a new principal balance of {$240000.00}. 

XXXX. The Annual Mortgage Interest Statement from WELLS FARGO HOME MORTGAGE for XXXX reflects that the Plaintiff paid {$1000.00} a month for the Mortgage plus {$280.00} for the Escrow ( tax + ins ), highlighting the monthly payment had increased to {$1300.00} in XXXX. The balance owed for XXXX XXXX XXXX XXXX, XXXX, TN was no longer {$110000.00} but XXXX in XXXX. The Principal Balance is increased {$120000.00} more than the Plaintiff borrowed in XXXX. The property taxes were {$1400.00} in XXXX. 

XXXX. The Annual Mortgage Interest Statement from WELLS FARGO HOME MORTGAGE for XXXX reflects that the Plaintiff paid {$1000.00} a month for the Mortgage plus {$300.00} for the Escrow ( tax + ins ), highlighting the monthly mortgage payment had increased from {$1300.00} to {$1300.00} in XXXX. The balance owed for the XXXX was {$230000.00}. The XXXX statement breaks down XXXX principal balances : XXXX  PRINCIPAL BALANCE was {$160000.00}, XXXX  PRINCIPAL BALANCE {$72000.00}. 

XXXX. The Annual Mortgage Interest Statement from WELLS FARGO HOME MORTGAGE for XXXX reflects that the Plaintiff paid {$1000.00} a month for the Mortgage plus {$270.00} for the Escrow ( taxes + ins ), highlighting the monthly mortgage payment to be {$1300.00} in XXXX. The balance owed for the XXXX was {$230000.00}. The XXXX statement breaks down XXXX principal balances XXXX  PRINCIPAL BALANCE was {$160000.00} and XXXX  PRINCIPAL BALANCE {$72000.00}. 

XXXX. The Annual Mortgage Interest Statement for WELLS FARGO HOME MORTGAGE for XXXX reflects that the Plaintiff paid {$1000.00} a month for the Mortgage plus {$300.00} for the Escrow ( taxes + ins ), highlighting the monthly mortgage payment to be {$1300.00} in XXXX. The balance owed for the XXXX {$230000.00}. The XXXX statement breaks down XXXX principal balances : XXXX  PRINCIPAL BALANCE was {$160000.00} and XXXX PRINCIPAL BALANCE {$72000.00}. 

XXXX. From XXXX to XXXX, WELLS FARGO HOME MORTGAGE fraudulently added {$160000.00} in Float Fees. WELLS FARGO HOME MORTGAGE has tried to conceal the allegations and attempted to remedy the situation by sending the Plaintiff random checks to shield itself from liability. 

XXXX. Annual Mortgage Interest Statements from WELLS FARGO HOME MORTGAGE, dating from XXXX XXXX. Suppose you analyze the Principal Balance from year to year. In that case, the Principal Balance starts to fraudulently increase from {$110000.00} in XXXX to {$240000.00} in XXXX. The Principal Balance increased by XXXX figures totaling {$120000.00} in XXXX more based on the Annual Mortgage Interest Statement provided by WELLS FARGO HOME MORTGAGE. The Annual Mortgage Interest Statements highlight all the years the Plaintiffs Mortgage Principal balance increased. The XXXX has never withdrawn from equity in the XXXX  years of ownership yet annually the payment increases and randomly the principal balance increases as high as XXXX figures. 

XXXX. The current payoff is {$260000.00} after XXXX  years of ownership without the Plaintiff withdrawing from the equity. The XXXX only borrowed {$110000.00} to purchase the house in XXXX. This difference indicates that the principal balance has increased by {$140000.00} more since XXXX, based on the {$260000.00} payoff.

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