Filing Formal Complaint??

iamnamja · Joined: 21 May 2009 Posts: 2

Hi,

I had some major issues with my agent, and I was wondering if you could give me some advice on how I should go about resolving it.

Well, I have signed a contract to purchase a house about a month ago. They recommended me a "preferred" lender, so naturally I went with him. He works for wellsfargo, and have caused nothing but headache since. Here's my story:

my agent he explained that they have a new program going on that if i deposit 1% of my loan amount, i can float down for free. I said i would enroll and that he should let me know when he needed the money. he agreed..

After the initial contract signing. We decided to request seller's concession of $15k. seller's agreed and that raised the final sales price from $495k to $510k. I have told our agent of this change, and he said he would process this.

a week passes, i've asked multiple questions he's response got slower and slower.. and then on a second week (3 weeks to closing) he called me to tell me that he went on a personal leave for the rest of the week because of some family emergency. i respected this and didn't request any help, ask any questions.

now. 2 weeks left with the mortgage, he emailed me with an urgent email saying that I needed to send him 1%. so naturally i called him immediately and provided him the credit card number to take the 1%. and during this conversation, the amount of the loan and seller's concession (or lack there of) stood out. so I emailed him to confirm the amount of the loan (explaining line by line stating my original sales price, seller's concession and my 20% down.) so my total loan now had to be $408k. he emailed me back saying that he would confirm again.

and that same day, i asked for a float down from 4.75% ARM to 4.5% ARM. He confirmed the float down, but never confirmed the loan amt etc.

after days. I have sent MULTIPLE emails asking him to confirm the total loan amt etc, and also asking if any other documents were needed by me. He had the commitment letter since the day i first requested the confirmation of numbers, but till the weeks end he told me that no additional documents were needed and had NOT confirmed the total amount.

now. a week left with my closing (closing was today so this week) i get a commitment letter in the mail requesting a horde of documents. I get angry, and I work with the mortgage specialist and get all the documents to them. i've sent the agent multiple emails telling him that the commitment letter is against what he had told me. I also send him an email with a bunch of "final" questions. which also includes him confirming once again that the float down happened to 4.5%.

he leaves me a voicemail stating that it floated down to 4.5% and that EVERYTHING is in order. he also emailed me today, and left me a voicemail saying that he's going away to meet his family, but everything. including the loan amount is in order.

TODAY: I go to closing. realize the loan amount is not 80% of the sales price. and the rate is still 4.75%!!!
I call him, and tell him of his error. he barely admits his error, and later tries to tell me that him and his boss thinks its MY fault because i didn't send my 1% deposit in time! (something about 10 days after contract i needed to give him the 1%) but i explain to his boss that i gave him the money when he asked, and i have email supporting it. they first tell me that the ONLY way to get the 4.5% now is for me to give them 0.25% points. of course i say no. and i argue with them and the manager finally agrees. but by this time its 5:15PM. he tell me that everybody has gone home and that the closing has to wait till Monday.

The manager requested the emails of the agent confirming that the floatdown occurred. which i sent. but i feel this isn't enough! I really want to write a formal complaint and show how he had ruined so much! we had plans to start construction right away, and also move in, but all is messed up because of his lack of professionalism, and responsibility!

Please give me suggestions on what i should do! Thanks.

m2c · Joined: 03 Aug 2005 Posts: 937

You’ve probably gone as far up the food chain as will be effective unless you want to vent for the sake of venting. If you are not pre-MDIA (pre-7/30/2009), it might actually cause you harm in another 3 to 7 business delay in closing.

I don’t mean to be an apologist for a Wells LO but in general they’re “Lake Wobegone”. I don’t like to lose a deal to a competitor but at least if it’s to Wells I assume they will be treated fairly. I may have to review my a priori-.s I suspect the LO succumbed to what is indicated by the strong points in your case and ignored the warning signs as they arose:

• After-the-fact manipulation of the contract price. Sales price is irrelevant. Loan underwriter is concerned with loan-to-value based on the lower of sales price or appraised value. $15K in seller concessions would raise some flags especially given the amount of fraud perpetrated on lender recently. Assuming this is a Fannie/Freddie loan, timing should put you under HVCC which basically means you have already received a copy of the appraisal. Otherwise you fall under a 90-day “request” period. What was the value shown? Surely you do not really believe you are NOT paying that $15K in closing costs! Bet the appraiser groaned as he read this change in price.
• I s the “new” Wells program really worth it. The “normal” trade off between rate and points with FIXED RATE mortgages is “guessed” at being ½ discount point for each 1/8 percentage point decrease in note rate. Trade off is actually determined by security prices and, potentially, buyup/buydown rates on guaranty fee In any case the approximation is reasonably close but point side should be less with an ARM since you’re looking at an adjustment in rate in one year, five years or whatever. I could be missing something but a 1% fee seems to be overly costly to the borrower. Yes, there has been some market volatility but wow! You should have realized options have exercise periods and logically there would have been something such as the 10-day period mentioned. Without such a time limited for execution by the borrower, Wells would be inviting adverse selection.
• Putting $5,100 on a credit card could raise another red flag but assuming the income you stated previously, I don’t see this as being much of an underwriting issue.
• Last minute money. The sudden appreaance of the extra thirty grand can raise eyebrows even in well documented.

LOs do take vacations, etc., but typically much of the “back office” work is done by a processor who normally stays in touch with the applicants. Very odd that there were time delays in your inquiries. Still if you ware post-MDIA, the change, i.e. lowering of rate and APR might cause a new delay in closing. Making noise a day away from closing could cause them to look closely at application date.

Roger_Silvester · Joined: 29 Jun 2009 Posts: 51

You can make a formal complaint at the following:

Federal Reserve Board Consumer Help
P.O.Box 1200
Minneapolis, MN 55480
Phone: 1-888-851-1920
TTY: (877) 766-8533
Fax: (877) 888-2520
Email: ConsumerHelp@FederalReserve.gov

KristinK908 · Joined: 29 Sep 2009 Posts: 26 Location: New Jersey

I have been hearing many complaints re: wells fargo..

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

I have also. Lots of issues with Wells Fargo. In fact, I have not locked a loan with them in months.

KristinK908 · Joined: 29 Sep 2009 Posts: 26 Location: New Jersey

ERIC, THEY HAVE "SCREWED" ME TOO MANY TIMES TO MENTION.
STALLING AND STALLING AND 60 DAY TURNTIMES, IT'S INSANE AND YOU CANT GET A HUMAN ON THE PHONE TO HELP.

EricJ · Joined: 09 Jan 2009 Posts: 321 Location: New Jersey

Kristin

I do not think they want the loans. I believe they review the files and cherry pick the ones they want. Then, ignore the rest and hope they just go away.

KristinK908 · Joined: 29 Sep 2009 Posts: 26 Location: New Jersey

you know you may be right! i didnt think of that, but it sure seems that way.
Oh well, many more lenders out there who are better anyway.
Have great day.
kristin