Mortgage -- Applying for a mortgage or refinancing an existing mortgage -- Complaint #6644555
Complaint Overview
Complaint ID: 6644555
Company: Wells Fargo & Company
Product: Mortgage
Sub-Product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage
State: California
ZIP Code: 92111
Date Received: 2023-03-03T12:00:00-05:00
Date Sent to Company: 2023-03-03T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Tags: Older American
Consumer Narrative
I secured an assumable mortgage in XXXX. Wells Fargo was selected by the mortgagor to service that mortgage. In XXXX, I endeavored to assume that mortgage as an individual, rather than as a married couple, as part of a divorce agreement. Wells Fargo required that I have a Debt to Income Ratio DTI ) of no less than 43 %, As I didn't have sufficient income, I secured two separate non-occupying co-borrower to submit the assumption application along with me. Both times, the co-borrowers were rejected -- once in writing and once verbally, because no matter their income ( both had annual incomes in excess of {$250000.00} per year ), I still had to satisfy the DTI of 43 %. The income of the co-borrowers was not considered in either of the two applications I filed. As a result, I was left with no choice but to terminate the mortgage. I believe the CFPB should investigate the DTIs required by mortgage servicers, as they effectively make any older or retired worker incapable of taking advantage of an assumable loan that they'd secured at a previous time. As a result of the unreasonably high DTI and the servicers ' refusal to consider the income of a non-occupying co-borrower, the loans are no longer truly assumable. Under XXXX XXXX rules, had I sought to secure a refinanced mortgage, the non-occupying co-borrowers ' income would have been sufficient for me to meet the DTI requirement. However, as a loan assumption, apparently the mortgage servicer was not required to incorporate the non-occupying co-borrowers ' income, thus effectively negating the assumability of that mortgage.
Frequently Asked Questions
What is Complaint #6644555 about?
Complaint #6644555 was filed against Wells Fargo & Company regarding Mortgage specifically about Applying for a mortgage or refinancing an existing mortgage. It was received by the CFPB on 2023-03-03T12:00:00-05:00.
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.