Consumer complaint received 2024-04-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Confusing or misleading advertising or marketing
Company: WELLS FARGO & COMPANY
State: PA

Complaint narrative:
In XXXXXXXX XXXX XXXX, I reached out to Wells Fargo regarding a mortgage to purchase my first home. 

At the time in XXXX, I was a first time home buyer in my late XXXX with a credit score over XXXX. My salary was XXXX. I decided to purchase my first home for XXXX. In finalizing my mortgage, Wells Fargo advised me to take a second mortgage as a HELOC instead of PMI. They said the second mortgage would be temporary as I could refinance and roll into my primary mortgage within a couple of years. I did not understand what that meant, but they made it sound super easy and I trusted their advice. They said I had a great interest rate. The second mortgage turned out to be a balloon mortgage which I did not understand then, I trusted the advice of Wells Fargo that it would go away and be rolled into my primary mortgage in a couple of years. ( Years later, I realized that was absolutely the worst financial advice provided by Wells Fargo ) After I purchased my home, I made home improvements by renovating my kitchen and installing hardwood floors in my living room and kitchen trying to increase the value. 

In XX/XX/XXXX, I was laid off from my job of 7 years due to the Financial Collapse in the US. In years XXXX, I struggled to find permanent employment at a similar salary. In XXXX, I finally gained a permanent job in an XXXX XXXX  with a salary of around XXXX. I also started working a XXXX XXXX XXXX  on top of my full-time job to make ends meet. 

Over the years, I reached out to Wells Fargo to see if I could roll my secondary mortgage into my primary like Wells Fargo advised. When I inquired to do that, they then said I was unable to do so. 


In XXXX, I reached out to get an amortization schedule so I could figure out what was wrong with my secondary mortgage. ( SEE ATTACHMENT ) The amortization schedule showed my loan as a simple interest loan and that it would be paid off by XX/XX/XXXX. This brought me some relief that I could get rid of the secondary mortgage eventually. 
In XXXX, I realized the second mortgage was not decreasing as the amortization schedule showed. I continued to reach out to Wells Fargo to get answers, I was continually passed around to different departments as no one was familiar with my type loan and no one had answers. They even told me that they do not offer my type of loan anymore. 

I filed a previous complaint to the Consumer Financial Protection Bureau and Wells Fargos response was that the amortization schedule was an estimate and they made an error calling it a conventional simple interest loan. They offered me {$300.00} for my grief. {$300.00} is simply not enough for the financial ruin they have caused. 

Since the second mortgage loan reached maturity, the only solution Wells Fargo provided was to refinance my loan. I would basically be paying the full amount of the loan AGAIN. I accepted the refinance for now since I can not afford to lose my home. 

This issue and Wells Fargos repeated mistakes are unacceptable. As a first time home buyer in XXXX XXXX XXXX XXXX XXXX XXXX XXXX  I believe I was taken advantage of by Wells Fargo and misled into a bad mortgage deal. How on earth would a first-time home buyer understand a balloon mortgage without being provided financial education regarding the risks? 

The resolution I would like to see is for Wells Fargo refund for all payments made to my second loan, the balance of the loan to be forgiven as well as to be compensated for damages.

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