Wells Fargo Home Loan

If you are considering a Wells Fargo Home Loan I would highly recommend that you take your business to another loan company.

Do not get a home loan from Wells Fargo. I have a home loan with Wells Fargo and have been trying to remove the PMI (private mortgage insurance) from my loan. It has become clear that many of Wells Fargo's policies and practices are designed to be confusing and slow in order to frustrate and discourage customers from exercising their rights on the home loan. Their consistent stonewalling and smokescreens have cost me thousands of dollars.

In July of 2003 My wife and I purchased our home with a fixed 30 year mortgage through Washington Mutual. Our down payment (approximately 12%) was less than 20% required to avoid PMI on the loan. Our interest rate was 5.3% with the PMI wrapped into the interest rate in something called .Advantage 90.. Once we were at an 80% loan to value ratio the PMI was supposed to be dropped off making our new rate 4.75%. With the PMI removed, our monthly payment will decrease approximately $100.00.

In August 2005 I called Washington Mutual to find out what I needed to do to get the PMI removed. Without looking at any information, the customer service representative told me I needed an appraisal and said she would send the paperwork to me. I then received the August 26, 2005 letter from Washington Mutual (Exhibit 1) listing a few criteria (no late payments, etc.) telling me to call an appraisal company (LSI Appraisal). It did not list anywhere on the letter that we could not have a Home Equity Line on the property.

I was told by LSI Appraisal the appraisal would be more than $400.

Paying $400 for an appraisal didn't seem like a bad investment to get the PMI taken off. However, at this point I did not know any of the exact numbers. For all I knew, removing the PMI might only save me $1 per month. Or worse, maybe I would pay for the appraisal and Washington Mutual would refuse to take the PMI off for any number of other reasons. So I decided to call Washington Mutual to get some clarification on how much PMI was costing me and if there were any other reasons they might not take it off my loan. The first representative told me that in I did not have PMI on my loan. At this point I had only a vague recollection of a decreased interest rate once we had the 20% equity in the home. I explained this to the customer service representative. She continued to tell me that I did not have PMI. I was pretty certain that I did. So called back and got another representative, who told me the same thing, that I did not have PMI. I continued to insist that I did. At this point I started to get passed around. I was transferred from one department to another and everyone kept telling me that I did not have PMI. I did my best to explain what I remembered. I was given phone numbers that went to voice mail with no one ever returning my calls. I eventually gave up figuring that maybe my memory was wrong. (Exhibit 2 has three (3) additional phone numbers so I know I made at least five (5) phone calls to Washington Mutual in which I was told I did not have PMI on my loan).

Around December 2006 My wife and I decided to do a major remodel to the house. I called Washington Mutual again, only this time I talked to a loan officer .Shawn. about getting a home equity line to pay for the remodel. I asked him about the PMI and he immediately told me that I did in fact have PMI and that it was wrapped into my interest rate. He gave me the exact numbers, the original rate of 5.3% which would be changed to 4.75% saving me around $100 per month. I found it very suspicious that the person trying to sell me a home equity line was the only person at Washington Mutual who could explain this to me. (My notes are attached as Exhibit 3)

I then called LSI Appraisal who came out in January 2007. The appraisal came back as expected; we met the equity requirement to have PMI removed. That same week I received a letter from Washington Mutual saying that effective February 1st my loan would be transferred to Wells Fargo. I knew this would cause problems so I immediately called Washington Mutual. They claimed they had not received the appraisal, but assured me the transition would be smooth and Wells Fargo would honor the request to have PMI removed and honor the appraisal done by LSI. I called Washington Mutual several times to see if they had received the appraisal. They continued to claim that they had not received it. I called the appraisal company and they claimed that they had sent it to Washington Mutual.

On February 1, 2007 I began calling Wells Fargo. They also claimed they had not received the appraisal from Washington Mutual. Again, I called Washington Mutual who continued to claim they never received the appraisal. On February 19th Wells Fargo sent two (2) letters, the first informed me of how to remove the PMI (Exhibit 4), the second informed me that they had not received the appraisal (Exhibit 5). The appraisal company was adamant they had sent the appraisal twice to Washington Mutual who should have forwarded it to Wells Fargo. Finally, on February 23, after several phone calls to Wells Fargo and talking with several different people, I was transferred to a Wells Fargo's customer service representative supervisor, Pamela Miller. She informed me I could fax the appraisal in myself. Why no one told me this earlier, I have no idea. I had wasted nearly a month and if someone had told me to fax it in earlier, I obviously would have. One interesting note, each time I called Wells Fargo and explained that I was trying to have the PMI removed, I was told that I did not have PMI on my loan. In fact, before talking with Pamela Miller I talked with someone named .Kachet. who told me this exact thing (See my notes on conversations with Pamela and Kachet, attached as Exhibit 6). After I explained that I was sure I did and demanded to talk with a supervisor, Pamela Miller did admit that I did in fact have PMI. So with each phone call I wasn't getting any resolution and was forced to jump through hoops for 15-20 minutes while I explained the situation again and again.

On February 27th My wife faxed the appraisal to Wells Fargo (Fax confirmation attached as Exhibit 7).

In early 2007 we decided to get a home equity line from Bank of America to remodel our house. Due to the fact that we had plenty of equity in our home, Bank of America approved the home equity line in February 2007.

Wells Fargo sent us a letter dated February 28th stating they had received our appraisal and would review our request for PMI deletion (Exhibit 8).

In a letter dated March 15th Wells Fargo stated the PMI was no longer a requirement for our home loan (Exhibit 9).

In a letter dated March 16th Wells Fargo stated we had to submit in writing a request to remove the PMI (Exhibit 10).

On March 27th Wells Fargo sent us a letter (Exhibit 11) and a check for $1.60 (Exhibit 12). The letter basically said the check was for the unused portion of the PMI. Since we also received a letter on March 16th, I think I called Wells Fargo and asked them what was going on. On Exhibit 11 I have underlined the phone number and written down what looks like a name, .Wil Wiscousin.. My memory is vague here, but I think I called them and they told me that I just needed to give them verbal communication that I did indeed want the PMI deleted, which I gave them. I.m not sure when, but at some point I called Wells Fargo and asked them what was going on, and someone told me I had to give them permission to remove the PMI. I think it was at this point.

In a letter dated March 30th (Exhibit 13) Wells Fargo sent me another exact copy of the March 16th letter (Exhibit 10) except it was signed be a different customer service rep, Stephanie Guy.

On April 30th I called Stephanie Guy and she told me that she .had been trying to contact me. and that I needed to give her written permission to remove the PMI. She gave me her email address and I immediately emailed her telling her I wanted the PMI removed (Exhibit 14).

From here on out I realized that Wells Fargo was giving us the run-around so I carefully took notes each time I talked with them. All the notes are hand scrawled but I do have them if needed.

On May 16th someone at Wells Fargo called me and said they could not remove the PMI because of the home equity line. Construction on our remodel started in late April, so by the time Wells Fargo called to say that they would not remove the PMI, literally 1/3 of our house had been demolished and we had started to make payments to the contractor.

On May 16th I called Wells Fargo to follow up with the phone call I received that morning. I talked with .Dion.. He again told me I did not have PMI. I insisted I did. He finally admitted that I did have PMI and said it was going to be removed. I asked him for some exact numbers. For some reason he could not figure out the new numbers. I then asked to speak to a supervisor. Dion transferred me to Amy Delacerea (her direct line at Wells Fargo is 414-214-4585). Amy told me the confusion with my PMI was because I actually had something called .Advantage 90. which allowed the PMI to be rolled into the interest rate. This was the first time anyone ever told me this. She said what I was actually trying to get was an .interest rate deduction.. I explained my entire story to Amy and she agreed that it did seem unfair.

In a letter dated May 15th Wells Fargo again said that the PMI would be deleted and actually gave us a new interest rate and monthly total effective June 1st (Exhibit 15). We signed and notarized the letter and immediately sent it back.

On May 18th Amy called to say that in order to have the PMI removed we would have to cancel our home equity line. I did not think this was possible, as the construction had already begun. She also mentioned that if we refinanced the whole loan we might not need PMI since we now had so much equity in the house. We had a very good interest rate of 5.3% so refinancing would have dramatically increased our overall payment, even given the fact we no longer needed the PMI.

On May 19th I went to Bank of America to ask how feasible it would be to pay off the home equity line, have the Wells Fargo PMI removed, and then reinstate the loan. I was told it would be a simple process. However, since demolition had begun, removing 1/3 of the entire house, we would probably not qualify for the same equity line amount. If I cancelled the home equity line at this point, we would not be able to complete our remodel.

On May 21st I called Amy to explain that we could not, at this late date, remove the home equity line. She said she would talk with her supervisor.

On May 24th .Raven. left me a message saying that I only had two options, either refinance or drop the home equity line. Raven left no contact information. I immediately called Amy. She and I had already discussed these options so I really didn.t understand why they would call me to mention them, when they were clearly not options. Amy said she would take the case to a supervisor.

On May 30th Amy called me and left a message saying that they were discussing an exception for my loan to remove the PMI.

Around June 1st I talked with Amy and she said that some group was having a meeting to figure out if they could either make an exception for me or simply remove it as a requirement for all loans. I never heard anything back.

On July 23rd I called Amy and left her another message asking what was going on with my PMI removal. She never called me back.

On September 4th I called Amy and she said that someone should have called me (no one ever did) to tell me they could not remove the PMI from my loan unless I got rid of the home equity line.

If Wells Fargo had processed our request to remove PMI in a timely manner they would have notified us that the home equity line needed to be dropped before PMI could be removed, while we were still in a position to remove the home equity line. Construction on our remodel did not start until April 22nd, 2007, and in fact the home equity line balance remained at zero until April 26th, when we wrote the first check to the contractor. Wells Fargo did not tell us that removing the home equity line was a requirement until mid- May, when it was far too late to remove the home equity line.

Wells Fargo took over the loan on February 1st 2007. I had already gotten the appraisal done in January. Everything was ready before they even got the loan. I can understand that it might take some amount of time, but for the first month (all of February) they simply stalled and gave me the run around. Then in March they sent me letters telling me that in fact the PMI would be removed. Then in May when they reversed their decision to remove the PMI, it was too late for me to remove the home equity line.

If in February, instead of giving me the run around, they had told me that they could not remove my PMI until I dropped the home equity line, I could have easily dropped it.

If in March, instead of sending me letters telling me they were going to remove the PMI, they had told me that they could not remove the PMI until I dropped the home equity line, I could have easily dropped it.

It appears to me that Wells Fargo implements several lines of defense to try and prevent people from removing the PMI. First, they don.t train their customer service reps well enough so that the entire process is slowed down to a near crawl. They make customers jump through hoops. And then once I.ve jumped through the hoops they send out letters indicating that everything is all right, when meanwhile all they.re doing is stalling in order to find another reason that that they shouldn.t remove the PMI.

Comments

Wells Fargo Home Mortgage

We have mortgage account with Wells Fargo Home Mortgage on our house which we purchased in Sept of 2008. I am self-employed in the luxury watch industry and my income has been decreased by roughly 70% since 2007. My wife is in payroll/HR in the resort industry and has taken a pay cut of about 10% during that same time. I am writing in regards to the treatment of us by Wells Fargo Home Mortgage while attempting to participate in the Home Affordable Modification Program.

In March of 2009, my income took a nosedive. We were current on our mortgage and had savings to keep us afloat for a few months. I saw trouble in the future if my income did not improve dramatically and I wanted to make WFHM aware of that. I called them to see if there were any programs I could get on for assistance, and they promptly placed us on the Home Saver Forbearance Program which was a 6 month forbearance that cut our mortgage payments in half. During that time, there were to be no late fees levied against our acct and no credit reporting. The Home Saver Forbearance stated that the unpaid amount of our mortgage was to be owed/paid at the end of the 6 month period as a balloon payment, unless we were placed on the HAMP Program after that 6 month period. After the 6 months were up, we had saved enough money to pay the balloon payment ($7200) plus the full month payment due on the 7th month ($2400). During the 6 month period, I made weekly calls (all call were recorded by me for my reference) to WFHM on the status of our modification process, and sent in updated financial information every month. The vast majority of these calls gave conflicting information regarding the Home Saver program and the HAMP program. Some of the Reps told me that I needed to be behind on my mortgage to get help, while others told me to send in reduced payments, while others told me they couldn’t even tell me anything until the Home Saver program had run its course. Again, we were not delinquent on our mortgage until we were placed onto the Home Saver Forbearance Program.

In October, we were sent a package of documents telling us that we had been placed on the 3 month trail period for the HAMP program, and that financial data, hardship letter, bank statements, copies of paycheck stubs and tax data were all needed as well as a check for $2208, each month for the 3 month trail period (that check amount was, per WFHM Rep and paperwork, going to be what our estimated HAMP payment was to be after the modification). We were also told that a requirement of the HAMP Program was for us to allow WFHM to set up an escrow account to handle our property tax and insurance. Up to that point, we were paying those liabilities as they came in. We agreed to the escrow as it was a "requirement" of the HAMP program. The escrow account effectively raised our mortgage payment to $2919 from $2400 a month. The 3 month trail period (Oct-Dec) had us paying $2208 a month which again, was our "estimated" payment we would be making after the modification.

In mid October, I was contacted by a WFHM Rep who was trying to get me to “set up my November and December confirmation numbers”. He opened up the conversation by saying, “I see right here, that we have you set up for a modification, and you’ve made your October payment already, and what we’re trying to do here is reduce that interest rate from 7.0% to 2.2%, take that past due balance of $7393 and put that on the back end of your loan.” (I have all of this recorded). He also said he could “almost guarantee” that we were going to save $1400 to $1500 on our mortgage if I let him “set up my November and December confirmation numbers”. The rep never stated his intent. I understood that he was trying to get me to authorize an auto draft from my bank account for the 3 month trail period payments of $2208, even though he never actually said that was the purpose of his call. I had already signed the documentation that was an agreement to me sending a check for the trial period amount by the 1st of each month in the trail period, so what was the point of authorizing an auto draft? I tried over and over to get him to state his intent, and he kept saying things like, “just give me the go-ahead on this, and I’ll make sure that your son has a safe place to lay his head at night, in case you forget to send in your trial payment check.” And, “I’m gonna keep it real with you. I’m not trying to stress you out, but this is the move you’re gonna have to make to keep your property, your lifestyle and your kids safe, in the same school and the same neighborhood…bbq’s…the whole thing. I have your banking information already. All you have to say right now is OK, I give you your 2 confirmation numbers and it’s done.” This call was completely laughable. It sounded to me like this guy had been offered a bonus program by WFHM that paid him if he was able to get anyone already signed up in the 3 month trial program, to secure auto drafts from their bank accounts. After over 20 minutes on the phone with him and him never actually asking me if I would authorize him to auto draft my bank account, I said, “Ohhh, you want me to allow you to auto draft my next 2 payments? Why didn’t you just say so? You never said anything about an auto draft!” At that point, he put me on hold immediately, came back in about 30 seconds and thanked me for my time and ended the phone call. This is very unethical behavior by WFHM. Again, I have all of this recorded.

By the end of December, we still (after repeated phone calls, all recorded by me for my reference) had no word on the status of our loan modification, and had again supplied updated financial information (3 times). The WFHM Reps kept telling us they were "behind" and were working on our modification and for us to continue to pay the $2208 "trial period payment" until further notice. Around this time we were also given an underwriter that was in contact with us to request even more information. This time, they said they needed a profit and loss statement from my company, which I supplied to them under the constraining time window in which they needed it. After that info was sent to the underwriter, I called her to ask the status of our HAMP application and she informed me that she had sent the info back to WFHM for review and that she was no longer our underwriter/contact after the info left her office/desk, and that she did see that "no one at WFHM had picked up the case yet". So I immediately call WFHM to see what was going on. I am informed by a WFHM Rep (another nameless, faceless call center person completely unfamiliar with our case, who wont even give a name or extension for future contact with, just like every other Rep I have spoken with and recorded for 10 months) that I have in fact "Failed" the HAMP Program. I asked her what tour grounds for failure was and she could not tell me anything. She mentioned that the financial data I provided needed to be updated every 30 days (the first time in 10 months I had ever heard that). She then gave me a number to call for assistance. It was the SAME number as my underwriter, who told me not 10 minutes earlier that she was no longer handling my case. When I called the underwriter back, she said she had no idea what was going on, but that she didn’t see that I had "Failed" the program. At this point, I start a rabid research regimen online to find any one in WFHM I can speak with to help make sense out of all this. I find a number for the Executive Office of the President and call the office of Cara Heiden, who transfers me to *********, who tells me that I have in fact failed the HAMP program, and must now start over to see if I am eligible for a WFHM "In House" modification. Of course, she tells me that she will need a new financial worksheet, hardship letter, 3 months of bank statements, copies of paycheck stubs, tax data, and new month-by-month profit and loss statements for my company, copies of all bills listed on the financial worksheet and that I have 5 DAYS to get this to her. So today, I have FedEx'ed that data to her. We'll see.

As of Jan 18th, the statements I receive from Wells Fargo say I owe them $14,700+ in back/late mortgage payments and late fees, along with a note saying that the foreclosure process has been started on our home.

When I started this in April 2009, we were current with all payments. I have fallen behind at the REQUEST of WFHM, have had my actual mortgage payment amount INCREASED by $500 a month (from the escrow account) by a "requirement" of a Federal Program that I "failed", yet still have to pay every month. I was told by WFHM to pay the "3 month trial period payments" of $2208, thereby underpaying the actual mortgage ($2919) by $711 a month, and then getting LATE FEES levied onto my account for that underpayment, as well as the 6 months of half payments from the Home Saver Forbearance Program. I have not even received any kind of written notice from WFHM that I have "failed" the HAMP program other than the call I initiated to a WFHM Rep (which cannot be trusted, as every rep says something different, and my underwriter couldn’t even see where I had failed the program). How long would Wells Fargo allow me to pay the 3 month trial period (under)payments without letting me know I had been rejected from the program while continuing to levy late/non-payment fees to my account? 2 months? 4 Months? A year?

We got all of the horrible, worst case scenarios that people get who neglect their bills, lie to get their loans, walk away from houses, have $0 down payments and create terrible credit scores for themselves, yet we have good credit, pay all of our bills on time, make sound fiscal decisions and have chosen the “high road” throughout this entire process and are now being punished for it.

Wells Fargo Sold our home during a modification process

To whom it may concern;

Our names are Jeff & Gloria and we believe we have an amazing story to tell about our home and our lenders attempts at making paying our mortgage impossible.

We have collected all possible data, down to each false name and employee number, proven receipt of documentation that was stated as never received and best yet WELLS FARGO SOLD OUR HOME with zero notification to us and admitted to this in writing, (PEOPLE LITERALLY CAME TO OUR DOOR AND SAID THAT THEY OWNED OUR HOME AND ASKED WHEN WOULD WE BE OUT) but Well Fargo is still continuing to try and make us default on our loan. Our records show things such as paperwork due a day before it was sent from Wells Fargo and much much more, our records are complete and safe both electronically and hard copies, our attorney’s have copies as well.

Last month Wells Fargo sent a bill for over $3,000 for a home owner’s policy, which we already have and have always had on our home.

The latest thing Wells Fargo is telling us they have not received payment while we have proof of payment and then announcing that they have raised the Mortgage by 300+ dollars also with no notification and the excuse was due to taxes, when we all know that with plummeting property values taxes on properties aren’t going up and certainly not by over 18%. Over & over again this company has stolen from us and we have not been able to do anything about it but sit by and be pillaged by these thieves.

We went into a modification of the Loan rate under the impression that we would be able to better afford this home Not that this was only a way for the Lender Wells Fargo to stream line our default on this mortgage.

I have been out of work, I’ve cashed in my entire retirement to stay a float and still Wells Fargo refuses to allow us to get this right.

We purchased this home for $ 205,000 have lived here and paid on this home for 4 years and now owe 212,000 to 252,000 according to who we talk to at Wells Fargo and our mortgage has gone up substantially. THIS IS CRIMINAL. A local TV station NBC in Kansas City has done a story on this and we are in the process of going nationally and obtaining better, hungrier attorneys who believe that this is an injustice.

This is not a single occurrence this is happening to many people who are led to believe that doing a loan rate modification will help and that they can get back on track but from what were seeing and hearing it’s not true. These big named banks are fleecing the American people and are getting away with it.

don't get mad - get even

If you've got a loan with Wells Fargo and are fed up with their "customer service", fight back. Split your monthly payment into 2 or more pieces, and send them in so that the payments don't arrive on the same day. This screws up Wells Fargo's systems and forces them to straighten things out manually which is very expensive for them. If enough people did this, Wells Fargo would get the message fast or would be forced out of the business.

PS If you use an on-line bill pay service, this is very easy to do and generally won't cost you anything, not even the price of a stamp. Just make sure you pay in full and that all payments get there on time.

Thank you for sharing your story

Your dealings with Wells Fargo sound quite similar to my dealings. This whole PMI issues is one big money maker for them and when ever I am trying to take it off the loan, no one can help me or answer any of my questions, but it sounds like when they can add it back they're quite quick with an answer.

Webmaster - WellsFargoWatch.com