Consumer complaint received 2017-01-12 00:00:00
Product: Mortgage — FHA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: WELLS FARGO & COMPANY
State: GA

Complaint narrative:
I have XXXX major complaints with my interactions with WellsFargo regarding my mortgage. 

The first : I purchased my home, in XXXX of XXXX for XXXX {$310000.00}. It was a foreclosure, and a good investment. At the date of the loan, it was appraised at XXXX {$340000.00}. I accepted an FHA loan at the time, with the understanding that there would be XXXX due for the first XXXX payments of the loan and/or when the loan to value ratio reached 78 %. 

As I am nearing the XXXX payment, I reached out to WellsFargo to find out what I had to do to remove the PMI and MIP ( which is currently almost {$300.00} per month ). 

Noted : FHA MIP will automatically cancel when the following conditions are met : For a 30-year loan term : Annual MIP cancels once the loan reaches 78 % loan-to-value and annual MIP has been paid for at least 60 months. 

As my home was initially appraised at XXXX {$340000.00} in XXXX of XXXX, it already meets the 78 % loan to value MIP, and as of XXXX of XXXX, payments will have been made for 60 months on the loan. My property was bought in foreclosure, and it 's true market value is upwards of XXXX {$520000.00} ( source XXXX ) Yet, the communication I received from WellsFargo via postal mail that will not go away until XXXX, which is 10 years and does not match what the federal lending guidelines stated when my loan was opened. 

I am also extremely troubled that the only option WellsFargo has given me is to refinance out of the loan. Refinancing out of my current loan would leave me paying a higher interest rate and cost me thousands of dollars ( as of XXXX/XXXX/XXXX that would be approximately {$2900.00} ) in fees to be paid directly to WellsFargo. 

Interestingly WellsFargo also states it will not honor an updated appraisal for my current loan, but yet requires XXXX ( with an additional fee, of course, to be paid to WellsFargo ) if I want to refinance into a new WellsFargo loan. 

I have reached out to WellsFargo on numerous occasions to see if I can work with them to correct their loan practices, but have been sent basic form emails and postal letters. In fact, they have sent me the same exact letter numerous times. 

My second complaint with my WellsFargo loan has been a late charge that appeared on my account on XXXX XXXX of XXXX for a late fee of {$96.00}. Mortgage payments are not due until the XXXX of every month so it would not be possible to have incurred a late fee by the XXXX. The late fee is automated, so I am deeply concerned that WellsFargo is passing this fee on to its millions of customers, and not reversing them until the consumer reaches out to WellsFargo. As you can imagine, many people probably do not notice the fee, and have their payments automatically debited from their account. 

This blatant disregard for consumer well-being and a complete unwillingness to send me anything other than generic form emails and letters has left me baffled and extremely disgruntled. Given the PR nightmare that WellsFargo has been dealing with lately, I would have preferred to not submit these issues to the CFPB, but I feel that I have no choice.

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