Consumer complaint received 2025-11-21 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: WELLS FARGO & COMPANY
State: NY

Complaint narrative:
CFPB Complaint Wells Fargo Bank , N.A .

Product : Mortgage / FHA-insured loan Company : Wells Fargo Bank , N.A . ( including Wells Fargo Home Mortgage ) 1. What happened I am filing this complaint against Wells Fargo Bank , N.A . to report long-running mortgage, securitization, foreclosure and FHA insurance fraud involving my familys four-family property at XXXX XXXX XXXX XXXX, XXXX, NJ and FHA Case XXXX. XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXs well as Wells Fargos internal loan number XXXX. 

This case has been the subject of prior CFPB complaints in XXXX. I am submitting this final, consolidated complaint because new evidence from XX/XX/XXXX through XX/XX/XXXX confirms that Wells Fargo : Foreclosed with no valid XXXX or standing ; XXXX FHA insurance money on a loan it knew was defective ; Used MERS assignments and phantom internal accounts to conceal securitization fraud ; and Continues to deny any wrongdoing despite contradictory written admissions. 


XXXX. Background how Wells Fargo got involved XXXX. In XXXX, I obtained an XXXX mortgage from XXXX XXXX XXXX XXXX sold into XXXX XXXX XXXX XXXX XXXX. 


XXXX. Wells Fargo eventually appeared as servicer and foreclosed around XXXX, even though the loan had already been securitized and the propertys earlier XXXX and XXXX liens had been paid off and XXXX. 


XXXX. Wells Fargo used a MERS Assignment of Mortgage dated XX/XX/XXXX ( from XXXX XXXX to Wells Fargo XXXX XXXX claim it was the person entitled to enforce the note ( XXXX ), even though that assignment came after securitization and after the loan had been committed into XXXX XXXX XXXX XXXX 


XXXX. Wells Fargo then submitted FHA XXXX XXXX XXXX under FHA Case XXXX and received FHA XXXX XXXX on XX/XX/XXXX. HUD records and my FOIA requests confirm this date. 



XXXX. Phantom loan and misleading credit reporting Instead of a real mortgage with a clean chain of title, Wells Fargo set up an internal phantom account : Wells created Loan # XXXX and reported it to the credit bureaus as a {$420000.00} FHA mortgage with status Foreclosure Paid/ Redeemed ( see my credit report excerpt XXXX ). 

In XX/XX/XXXX, Wells Fargo sent me a payoff letter referencing Loan XXXX and FHA XXXX XXXX, stating that they had received and processed the funds necessary to pay your loan in full. 

In its XXXX CFPB response, Wells Fargo admitted that XXXX was only an internal file number and that it had no records for XXXXXXXX XXXX XXXX XXXXnd could not validate any XXXX claims. 


In other words, Wells Fargo : Created an internal phantom account ; Reported that phantom account as a real mortgage on my credit ; Foreclosed based on this phantom construct ; and Then told the CFPB it was just an internal file once I challenged it. 


XXXX. Securitization and title defects Wells Fargo ignored Separate from the XXXX XXXX FHA loan, my property was used as collateral in a XXXX loan # XXXX that was placed into XXXX XXXX, XXXX and XXXX ( triple-pledged into multiple trusts ). The XXXX  XXXX distribution report shows this loan was listed paid in full as of XX/XX/XXXX. 

Key points : XXXX XXXX  ( an earlier conventional loan ) was paid off in XX/XX/XXXX and properly XXXX in XXXX. 

XXXX XXXX XXXX XXXX XXXXXXXX was sold into XXXX and paid off in the trust in XXXX. 

By the time Wells Fargo foreclosed, none of these earlier liens were valid ; they had been extinguished or securitized. 


Despite this, Wells Fargo : Relied on a MERS assignment that supposedly transferred my mortgage to XXXX in XX/XX/XXXX after securitization and long after Emigrant and XXXX were paid. 

Foreclosed as if there were a live, enforceable XXXX, and then claimed XXXX XXXX XXXX on top of securitization proceeds. 


XXXX. What has happened since XX/XX/XXXX ( new developments ) Since XX/XX/XXXX, multiple independent sources have confirmed that XXXX XXXX version of events can not be true : XXXX. Wells Fargo Final Denial Letter ( XX/XX/XXXX ) Wells Fargo sent me a final denial letter doubling down on its claim that it properly serviced my FHA loan and that the MERS assignment was standard. 

At the same time, they admitted that XXXX was just an internal file and that they could not validate any connection to XXXXXXXX XXXX XXXX XXXX XXXXXXXX. This contradicts the story they told in earlier years and to the courts. 



XXXX. Triangulation with HUD, XXXX XXXX, and XXXX HUD FOIA XXXX for Form XXXX and claim file for FHA Case XXXX confirm Wells Fargo was paid FHA XXXX on XX/XX/XXXX XXXX 

XXXX XXXX Title ( title insurer for a later buyer, XXXX XXXX ) is now represented by outside counsel after I filed a claim showing that the foreclosure Wells Fargo relied on was void, because the only real XXXX ( XXXX  ) had been paid and XXXX and the XXXX XXXX XXXX XXXX already been paid by HUD. 

XXXX XXXX XXXX a new FHA-insured loan XXXX XXXX XXXX with a XXXX FHA case number, XXXX on a deed that traces back to XXXX XXXX defective foreclosure XXXX Regulators ( NJDOBI ) are being contacted because that second FHA loan appears to be secured by a void title. 



XXXX. Affidavit of XXXX XXXX ( XXXX ) and my subsequent evidence Independent expert XXXX XXXX affidavit shows that the XXXX XXXX loan was sold into XXXX XXXX XXXX Trust XXXX before Wells Fargos XXXX assignment. 

XXXX also confirms XXXX XXXX XXXX XXXX XXXXs trustee for the XXXX XXXX trust is never named anywhere in my note or mortgage, proving the chain of title was never properly formalized before Wells Fargo foreclosed. 

XXXX XXXX XXXX CFPB response did not address this affidavit or the trust-level data at all. 



XXXX. XXXX XXXX and XXXX issues In the Affidavit of Consideration for Sheriffs Deed, Wells Fargo referenced obtaining a letter of indemnification for the old Emigrant Mortgage, even though Emigrant had already been paid off and XXXX. 

This shows Wells Fargo and the title companies knew there was a serious title defect but chose to use indemnity instead of curing the defect or acknowledging that the XXXX still held superior title. 




In summary, since XX/XX/XXXX, every new piece of evidence has confirmed that : Wells Fargo foreclosed on phantom and already-paid obligations, Collected FHA XXXX XXXX, Reported inaccurate information on my credit, And continues to mislead regulators by downplaying these facts as standard servicing. 


XXXX. What I believe Wells Fargo did wrong I believe Wells Fargo Bank , N.A . : XXXX. Foreclosed without a valid XXXX or standing, relying on a defective MERS assignment and ignoring the fact that the underlying Emigrant and XXXX liens were paid and that the XXXX XXXX loan was already securitized into XXXX XXXX XXXX XXXX. 


XXXX. Collected FHA insurance proceeds ( HUD XXXX XXXX ) on XX/XX/XXXX despite knowing that the loan and title were defective. 


XXXX. Maintained a phantom internal loan account ( # XXXX ) and reported it to the credit bureaus as a real FHA mortgage, harming my credit and concealing the securitization/FHA payoff XXXX 


XXXX. Provided incomplete and misleading responses to earlier CFPB complaints, omitting securitization details, HUD claim information, and the true nature of the MERS assignment and internal file numbers. 


XXXX. Contributed to ongoing title fraud by enabling a void foreclosure that later allowed a second FHA loan to be originated on my familys property for a third party ( XXXX XXXX ), leaving the XXXX of my grandfather without its property and without compensation.

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