The Games Wells Fargo Plays: Denying Mod Based on Faked Income

I swear those loss mitigation folks at Wells Fargo remind me of naughty children. You know, the snot-nosed five-year-old who holds his hands over his ears when you’re trying to reason with him and then shouts “I can’t hear you!”

I’ve been working with (against) Wells Fargo for 20 months now trying to get them to restructure my mortgage loan. After stringing me along and trying all kinds of misinformation and outright lies, now they’ve resorted to out-and-out fabrication of numbers, namely ignoring my reported and verified income figures and assigning their own much lower number.

And how do they justify pulling a number our of thin air instead of using the reams and reams of income-verification paperwork I have sent in over the past nearly-two years? Of course, they don’t. They just use this bogus figure to justify denying my loan modification, saying my income is insufficient.

I have been very clear when providing income information, so I’m quite sure this isn’t a mistake or a simple data-entry or calculation error. I do think it’s a calculated strategy to “justify” turning down the mod. Let’s see whether you agree when you know the facts.

I am the owner/sole employee of an S-Corporation. Twice each month I write myself a check from the business credit union account. I then deposit those checks into my personal credit union account. Different credit unions. Business account in business name. Personal account in my name. Very clean, clear accounting.

From the business account, I pay to the IRS the entire quarterly payroll tax for the amount I have paid out in payroll to myself. I do not pay any portion of this tax via my personal account.

For this example, let’s say the amount of the two monthly checks is $900 each, for a total of $1,800. Very simple.

To verify/confirm that income, Wells Fargo has a year + of credit union statements for both my business and personal accounts. Per a request from a Wells Fargo representative, one set of statements was provided after having been very clearly marked up to highlight the check numbers and amounts on the business statements and the corresponding deposit dates and amounts in my personal account. Payroll expense out; personal income in. Couldn’t be more clear and simple.

We have also sent copies of the fronts and backs of the checks to further prove that income amount we are submitting is correct. And they have profit-and-loss statements broken down by month, clearly showing the payroll expense matching the statements and canceled checks.

Yet, for some reason I cannot fathom, Wells Fargo’s underwriters have in two consecutive modification reviews designated my net income as $1,185. In the current review, even the “loss mitigation” person who is my designated “single point of contact” seems to understand that my net income is $1,800. But the underwriter persists in using the much lower number and – big surprise – determining that my income is too low to qualify for a mod.

I’ll be adding a report of this nonsense to the already-thick complaint filed with my state’s attorney general, for all the good that will do. Will this fraud never end? Won’t anyone with any power step up and smack these naughty children around until they take their fingers out of their ears and behave at least as well as a reasonably civilized five-year-old?

13 thoughts on “The Games Wells Fargo Plays: Denying Mod Based on Faked Income

  1. I know the feeling all to well. It took us over two years to get modifed including, three trail modification periods, and contacting every company/group associated with Wells Fargo (Fannie Mae, Radian Guaranty, etc). But Wells Fargo is back to their fuzzy math again.

    • Michael,
      Glad to hear from someone who actually made it through the process. Congrats!

      I’ve been blown off by Radian Guaranty and Freddie Mac as well as strung along and lied to by Wells Fargo. Makes you wonder how any real business gets done these days when the entire focus seems to be on screwing the customers. Not what I’d call a sustainable business model.

  2. They have been switching our representative monthly on us.

    Today, I call the latest representative and someone else answers and tells me that the person assigned to me two weeks ago has been promoted.

    Mind you, “Rep A” was my rep for September, then she was promoted, and then we got “Rep B”, only we never got him on the phone. But we did manage to get another rep on the phone in October. We sent everything that we had to him, and he verified on the telephone, right down the list, that he had everything.

    So back to today. I call for the previously promoted rep, who apparently was promoted again, and the rep that I was speaking to looks up the information, and starts giving me a list of all of these docs that they don’t have now, but DID have in October. There was our personal representative who is helping us with the mod, and us in the room, on speaker phone, and we all heard him verify that he had the information.

    And now they don’t.

    Now, take the bulk of this story, and repeat it, every month, since we started the process. Literally every month.

    How is there not a class action suit against them?

    • Yep, that’s the same story we’re all telling about our mortgage mod experiences, no matter which bank we’re dealing with. Interesting, isn’t it, that all the big banks coincidentally put in place identical processes to prevent their borrowers from actually getting any foreclosure prevention assistance? I’m sure there was no collusion there …

      And it’s an evil, sinister little game with a predetermined outcome (in the bank’s favor) because nobody in government or law enforcement will lift a finger against their cash cows. All the so-called “foreclosure-prevention” programs were clearly designed to fail, to give the banks free rein to play their delay-and-deny games and take as much money from their borrowers as possible before stealing their homes.

      The problem with a lawsuit, class-action or otherwise, is that there are no laws detailing how a bank can deal with a customer regarding loan modification. The government programs like HAMP are just “guidelines” that the program designers say they expected the banksters to voluntarily comply with. Yeah. Right.

      Of course, there are laws against such things as forging tens of thousands of foreclosure documents and failing to honor the terms of contracts such as servicing agreements. But even the explicit laws aren’t being enforced except in isolated areas where there are honest, honorable judges and law enforcement.

      You and I and the other millions in foreclosure have been well and truly hung out to dry by virtually every lawmaker, regulator and law enforcer in the country. And unless we have millions of dollars to buy our own legislators and judges and attorneys general, there’s not a thing we can do except stand firm and fight our little fights.

      Best of luck to you and your family. I wish you the fortitude to keep playing the bank’s game at least to give yourselves the satisfaction that you did not go down without a fight. Cost them as much time and money as possible on your way out the door. If we all do that, it becomes our own version of “class” action.

      • I too went thru the ringer with foreclosure date set of Jan 3rd. We filed Bankrucy to stop the sale but they took our money for 6 months snd put it in a account that they did not credit to our account which is not suppposed to be legal. This I have heard several times by others including have us moneygram a large sum to them and they still set a date for foreclosure. I was still making monthly payments but was behind trying to catch up after they told me not to make payments while I worked on a modification. There should be a class action suit out there somewhere. Someone help us fight them. Today I received my tax forms and it shows I barely paid interest either so wherew did this money go? It did not go to principle or interest.

        • Hi Janet,
          So sorry you’re caught up in this awful nightmare, too. I hope you’ll be able to get your money back or have it credited toward your account so you can save your home.
          As for a class-action lawsuit regarding mortgage mod fraud, I’m sure ready and willing to join one. It’s about time someone stood up for the homeowners.
          Best of luck to you in your fight!

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  4. I have been arguing with WFHM since 2006 , lets see- 4 attempts at the crazy re modification in which 3 times they state never got my paperwork back and the fourth time well the signatures did not match??? match what you never got the other paperwork, then after adding on 20,000.00 in fees my investor whom i take to be the illegitamate child of fannie and freddie and her name is Ginnie Mae….. well so happens I call Ginnie Mae and was told they are not the investor and WF told a “falsehood” not a lie ????? ook then I look at my ” note” well we have a great one : we can fill in the blanks with what ever we what it to say…… nothing on it …….then we get two deeds of trust for the same loan yes, the same loan however one deed of trust has a “magic” paragraph that just appeared out of nowhere, funny thing though the numbers and or the dates match the certificate of satisfaction in which sorry have to laugh at the irony of this all four signatures are “robo-signers” ohhhh my Pot meet Kettle….. what the signatures don’t match;;;;;; (hahahahah heehheheheh giggles in the background :) ) I will win this fight….. We Forge Home Mortgages (wfhm -other name for them but have to keep this clean” ) I contacted Justice dept. Fbi ; O.C.C. (not orange county choppers) HUD Dept of Treasury, Attorney General Don’t Give up the Fight

    • Thanks for sharing your story frankie. I think the only way homeowners are going to get any traction against the big banks’s foreclosure feeding frenzy is to keep telling our stories and shocking our friends, neighbors and co-workers who still think American businesses would never lie, cheat, steal and commit outright fraud against their own customers. People have the illusion that we live in a democracy and are protected by the rule of law when really the only thing thing that has any influence is money.

      Best of luck in your fight!

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