Wells Fargo Mortgage RIPOFF quoted interest rate, at time of signing the rate was much higher San Francisco California
I applied for a line of credit with part of it at a fixed rate for three years and the other part as an ajustable rate, and was quoted an interest rate. At the time of signing, the rate was much higher. I did not say anything and signed the papers.
About eight months later, I refinanced the total amt of this ine of credit to a seven-year fixed rate and was quoted 7.225%.
However, when I received the call that the paperwork is ready for signing, I wanted to verify the interest rate and was given 7.75%. I was not going to take this lying down, since this was the second time I would receive a higher interest rate at signing than quoted earlier. No one could find the quote of 7.225% untile I threatened with a law suit, etc. All of a sudden the original quote was found on the computer and I was promised to receive that interest rate.
However, at the time of signing, the rate was 8.39, which I of course rejected and became very upset. Again, we went around and around and finally the original quote was again found on the computer, and again I was promised the orinally given rate.
So, the next day I again drove the 14 miles to the bank and the papers showed 7.47%. I could not believe it. Finally, I drove the third time to the bank and finally received the 7.225% interest rate.
A letter to d**k Kovacevich did not even provoke an answer, let alone an appology.
Since this has happened to me twice, I cannot believe that I am the only one this has happened to and believe very strongly that this is a common practice of Wells Fargo and would like to hear from anyone having had the same experience, since I call this fraud.
Heidi
Smartville, California
U.S.A.
6 Updates & Rebuttals
Abcdefg
LAS Vegas,Nevada,
U.S.A.
Don't sign next time
#7UPDATE EX-employee responds
Tue, May 06, 2008
I used to be employed with Wells Fargo as a Pricing Analyst (working with mortgage brokers to register, lock and restructure mortgage first and seconds.) I am not 100% sure how it works with stand-alone second mortgages, but I can say what I know about a second attached to a first. Home Equity Lines of Credit (HELOC) are always adjustable, so what you are speaking of sounds like it is the Heloc with a Fixed Rate Advance Option (FRAO). Where Home Equity Loans (HELOAN) are fixed when locking the first, The Heloc with the frao, the fixed portion can only be locked into a rate at or after closing. So when you were quoted, my guess is the prime rate went up sometime thereafter.
Abcdefg
LAS Vegas,Nevada,
U.S.A.
Don't sign next time
#7UPDATE EX-employee responds
Tue, May 06, 2008
I used to be employed with Wells Fargo as a Pricing Analyst (working with mortgage brokers to register, lock and restructure mortgage first and seconds.) I am not 100% sure how it works with stand-alone second mortgages, but I can say what I know about a second attached to a first. Home Equity Lines of Credit (HELOC) are always adjustable, so what you are speaking of sounds like it is the Heloc with a Fixed Rate Advance Option (FRAO). Where Home Equity Loans (HELOAN) are fixed when locking the first, The Heloc with the frao, the fixed portion can only be locked into a rate at or after closing. So when you were quoted, my guess is the prime rate went up sometime thereafter.
Abcdefg
LAS Vegas,Nevada,
U.S.A.
Don't sign next time
#7UPDATE EX-employee responds
Tue, May 06, 2008
I used to be employed with Wells Fargo as a Pricing Analyst (working with mortgage brokers to register, lock and restructure mortgage first and seconds.) I am not 100% sure how it works with stand-alone second mortgages, but I can say what I know about a second attached to a first. Home Equity Lines of Credit (HELOC) are always adjustable, so what you are speaking of sounds like it is the Heloc with a Fixed Rate Advance Option (FRAO). Where Home Equity Loans (HELOAN) are fixed when locking the first, The Heloc with the frao, the fixed portion can only be locked into a rate at or after closing. So when you were quoted, my guess is the prime rate went up sometime thereafter.
Abcdefg
LAS Vegas,Nevada,
U.S.A.
Don't sign next time
#7UPDATE EX-employee responds
Tue, May 06, 2008
I used to be employed with Wells Fargo as a Pricing Analyst (working with mortgage brokers to register, lock and restructure mortgage first and seconds.) I am not 100% sure how it works with stand-alone second mortgages, but I can say what I know about a second attached to a first. Home Equity Lines of Credit (HELOC) are always adjustable, so what you are speaking of sounds like it is the Heloc with a Fixed Rate Advance Option (FRAO). Where Home Equity Loans (HELOAN) are fixed when locking the first, The Heloc with the frao, the fixed portion can only be locked into a rate at or after closing. So when you were quoted, my guess is the prime rate went up sometime thereafter.
Robert
Aliso Viejo,California,
U.S.A.
Prime rate increases at leat 6 times in the past year!
#7Consumer Comment
Fri, December 30, 2005
Maybe it changed because the prime rate has increased so much over the past year, just an idea.
Why do you think it's fraud if you received the rate you wanted? Mortgage rates on 1st and 2nd mortgages change on a daily basis and as far as I know no one can lock a rate on a second mortgage, especially an adjustable line of credit.
By the way, if they committed fraud the first time why would you go back to them a second time?
Cassandra
Chippewa Falls,Wisconsin,
U.S.A.
Interest Rate
#7Consumer Comment
Thu, December 29, 2005
Do you know if you were looking at the interest rate or the APR? There can sometimes be a big difference between the two, and sometimes they are not explained properly. If there were fees/points charged, the APR will be higher than the interest rate.
Just a thought!