Consumer complaint received 2015-10-17 00:00:00
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Credit decision / Underwriting — 
Company: WELLS FARGO & COMPANY
State: CA

Complaint narrative:
In accordance with the protections and rights of, and the enforceability of said rights and protections pursuant to the following:1. ) Fair and Accurate Credit Transactions Act of XX/XX/XXXX. ) Real Estate Settlement Procedures Act ( RESPA ) 3. ) Truth in Lending Act ( TILA ) 4. ) California Homeowner Bill of Rights5. ) National Mortgager SettlementOn XX/XX/XXXX, I accepted a loan modification from Wells Fargo. The loan modification is an in house loan which was negotiated over a 5 month period of time. By law lenders must " clearly '' disclose all terms and conditions at the time of the mortgage application. This loan was a " settlement '' to a dispute regarding the miscalculation of income. Wells Fargo was found to have an " error '' in their processing. Specifically they used an incorrect income in determining the NPV. Due to this error I appealed the original denial and was eventually approved XX/XX/XXXX. It took over 120 days to correct their error in the original loan modification application. This was not my fault. Here are the violations of law against Wells Fargo:1. ) Failing to Process the Application in a Timely Manner. 
When a mortgage servicer receives a loan modification application from a homeowner 45 days or more before a foreclosure sale, it must:1 ) review the application 2 ) determine if the application is complete or incomplete, and 3. notify the borrower within five days stating that the application is complete or incomplete. ( If incomplete, the servicer must describe the information needed to complete the application. ) If the servicer receives a complete application more than 37 days before a foreclosure sale, it must review the application and determine if the borrower qualifies for a loan modification within 30 days. 
2. ) Using Incorrect Income Information In Processing the NPV. 
Under federal mortgage servicing rules, the national mortgage settlement, and under California 's Homeowner Bill of Rights, if the reason you did n't qualify for a loan modification is because of the NPV calculation, the servicer must tell you the values that it used to calculate the NPV. If the servicer used the wrong information, you can appeal the denial. 
3. ) Inserting a Waiver Into the Loan Modification Documents in which I agreed to release all claims against the lender. This is not legal. 
4. ) In Accordance with the " National Settlement Act '' Loan servicers are required to develop an online loan portal to provide borrowers and counselors with information on the loss mitigation process. Servicers must develop an online portal that allows the borrowers, at no cost, to submit documents electronically and check the status of their loan modification application. Wells Fargo provided no such portal for my loan. 
Follow loss mitigation timeline and procedures. Servicers are required to follow specific loss mitigation procedures for a mortgage loan secured by a borrower 's principal residence. If a borrower submits an application for a loss mitigation option, the servicer is generally required to acknowledge the receipt of the application in writing within five business days and inform the borrower whether the application is complete and, if not, what information is needed to complete the application. The servicer is required to exercise reasonable diligence in obtaining documents and information to complete the applicationServicers must perform an automatic, independent in-house review of any denial of a request for a loan modification on a first-lien mortgage. This evaluation must be performed by an employee who was not involved in the initial decision to deny the loan modification. I am damaged by the violations of laws. My credit history and the reporting of my loan is not correct, not as agreed to and not legal.

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation