Wells Fargo Home Mortgage
Wells Fargo Refused to Fund After Closing on Refinance Loan

We have been working to refinance for some time. Finally we got to the point where we were approved. We went to closing, signed all the docs and paid over $5000 in closing costs. Ten days later I received an e-mail from our mortgage broker stating that due to the length of time to fund that our lock has expired and that we needed to come up with another $12,000 or take on a highter interest rate. We were devasted.

I reviewed the loan documents again this evening and found that the loan approval was scheduled to expire on April 14. We weren't even scheduled to sign the closing docs until April 16. If we knew the loan was scheduled to expire on the 14th and we weren't scheduled to sign until the 16th, shouldn't our broker have asked for an extension?

I read the Rate Lock-In Expiration Amendment and it states:

"Your loan must close and funds must be distributed prior to your Lock-In Expiration Date..."

All the paperwork is dated April 10. Based on the 3-day rescission period, we would have had to have signed the docs on April 9th in order to fund by the 14th. This simply wouldn't have been possible.

If we had known that this deal was required to close by the 14th, we would have certainly forgone work and any other commitments in order to sign the docs. However, I was told that signing on the 16th (to accommodate our work schedules) was not a problem.

How could such a valuable part of the process (rate lock-in expiration) be missed? Did Wells Fargo know that we weren't signing until the 16th of April, even though the approval expiration date was the 14th? Were they aware (if they drafted the final closing docs) that closing and funding by the 14th would have been impossible since the paperwork wasn't even submitted to Title until the 10th?

We have no idea where this broke down, but we recently told that Wells Fargo has changed their lending requirements and that they are refusing the loan. I can't even explain how upset we are that after going to close, signing the docs and handing over our $5000 check to the Title Company that the deal fell through. How does this happen? Do we have any recourse against Wells Fargo?

Company: Wells Fargo Home Mortgage
Country: USA
State: Nevada
City: Las Vegas
Site: www.wellsfargo.com

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