Mortgage -- Trouble during payment process -- Complaint #5828179
Complaint Overview
Complaint ID: 5828179
Company: Wells Fargo & Company
Product: Mortgage
Sub-Product: Conventional home mortgage
Issue: Trouble during payment process
State: New York
ZIP Code: XXXXX
Date Received: 2022-07-31T12:00:00-05:00
Date Sent to Company: 2022-08-17T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Tags: Older American, Servicemember
Consumer Narrative
MIS-APPLICATION OF BORROWERS LOAN PAYMENTS BY WELLS FARGO TO PAY FOR LEGAL FEES-LOAN ACCT. # : WELLS FARGO LOAN ACCOUNT # XXXXXXXX XXXX XXXX ACCT. # XXXX. I wish to request that the amount misapplied by Wells Fargo wrongly towards legal fees and expenses disbursements contrary to the compliance requirements of the Real Estate Settlement Procedures ( RESPA ) and its implementing regulation, Regulation X. This also constitutes violations of the Consumer financial Protection Act of XXXX. These monies meant for the purpose of principal payments, interest and escrow ( taxes etc. ) payments were not applied ; accordingly, rather used to settle legal fees without any disclosure ( s ) to the borrower at any time. Wells Fargo had accepted that only the sums of {$3400.00} and {$3400.00} was applied from the loan accounts for legal fees/costs and foreclosure costs respectively ( see Exhibits 1 and 2 attached ). Howbeit, the loan account activity statement provided by Wells Fargo specifically for years XXXX and XXXX, clearly confirms that {$22000.00} was misapplied for legal fees and disbursements ( see Exhibits A and B attached ). The New York State Laws states that not more than {$600.00} should be expended to recover any debts from the borrowers loan account ( See Exhibits C attached ) In XXXX, the borrower requested that the unutilized balances in the borrowers loan account including the excess legal fees be credited and applied to the loan principal account which was then in arrears of two-months in the sum of {$8600.00}, to fulfil the requirements of the XX/XX/XXXX modification agreement with XXXX XXXXWells Fargo for the forgiveness of the deferred 2nd principal amount of {$140000.00} conditioned on the borrower not being in arrears of 3 months mortgage payments at any time ( Exhibits 4 and 7 attached ) Wells Fargo did not resolve my concerns nor honor my request; but instead, immediately : 1 ) Cancelled the loan forgiveness of {$140000.00} stating the borrower had violated the terms of the modification agreement and 2 ) Transferred the servicing of the loan to a new servicer, XXXX XXXX XXXX XXXX XXXX XXXX
Frequently Asked Questions
What is Complaint #5828179 about?
Complaint #5828179 was filed against Wells Fargo & Company regarding Mortgage specifically about Trouble during payment process. It was received by the CFPB on 2022-07-31T12:00:00-05:00.
How did Wells Fargo & Company respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Mortgage) and describe your issue in detail.
Can I see other complaints against Wells Fargo & Company?
Yes, visit the Wells Fargo & Company company profile at readthecomplaint.com/company/wells-fargo-company to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.