Consumer complaint received 2025-12-16 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: WELLS FARGO & COMPANY
State: WA

Complaint narrative:
On XX/XX/2025, Wells Fargo provided me with written confirmation that my refinance loan was approved and ready to close. The message explicitly stated, Congratulations! Your loan is ready to close, and included finalized loan terms, payment amounts, and a rate lock expiration date. This represented final underwriting approval ( clear to close ). 

XXXX days later, on XX/XX/2025, I was contacted and told that a secondary level quality assurance review required additional documentation related to my employment and income. I promptly provided all requested documents, including pay stubs and documentation of federally protected FMLA leave. 

Despite having already received final approval and despite my employment and income being accurately disclosed throughout the process, Wells Fargo later withdrew the loan approval. I was informed verbally and by email that the decision was based on a secondary review concluding that my debt-to-income ratio exceeded allowable limits due to the exclusion of overtime income. 

Why this is a problem : This action is deeply concerning for several reasons : Final approval was already issued. 

Wells Fargo represented in writing that my loan was approved and ready to close. Withdrawing approval after clear to close is highly irregular and contrary to reasonable consumer expectations. 

The decision relied on a single paycheck taken out of context. 
Wells Fargo relied heavily on one post-leave paycheck that reflected reduced hours due to personal family priorities following the birth of my second child. A single paycheck does not establish an income trend, especially when two full prior years and year-to-date earnings show strong, consistent income. 

My income reduction was temporary and fully explained. 

I took federally protected FMLA leave in XXXX and XX/XX/2025 and then temporarily reduced hours upon return while relying on savings. I am a registered nurse in a hospital system with constant overtime availability and specialized training that gives me ongoing access to additional income. My earning capacity did not decline. 

The lender performed a post-approval review that overturned underwriting without transparency. 

Wells Fargo has stated this was due to a secondary QA review, but has not clearly explained how or why this review was permitted to override an already issued clear-to-close decision. 

The situation feels misleading and unfair. 

I reasonably relied on Wells Fargos final approval. Withdrawing a mortgage at this stage feels like a shady and deceptive business practice, particularly when the reasons cited were known or knowable before approval was granted. 

Regulatory concerns : I am concerned that Wells Fargo may not have complied with the Equal Credit Opportunity Act ( ECOA ) and Regulation B, which require : -Clear, timely, and specific written notice of adverse action -Consistent and non-misleading underwriting practices -Good-faith treatment of borrowers who reasonably rely on lender representations

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