Consumer complaint received 2022-06-10
Company: FIRST NATIONAL BANK OF PENNSYLVANIA
State: TN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XXXX, I was informed that I was pre-approved for a mortgage and was provided with a letter documenting this. 
Finding a home where I was looking was difficult and so time passed, and I received updated letters twice : I received another pre-approval letter on XXXX and again on XXXX. 
The letter on XXXX showed that I was locked into a 4.25 % interest rate. 
On XXXX, I put an offer in on a house, based on the pre-approval, and the offer was accepted. 
The deal was for a short close ( 30 days, on XXXX ) and so the lending agent collected all of the information quickly, had me fill out all of the forms, had me open a bank account with his bank, and submitted all of the information to the underwriter. 
During this time ( XX/XX/2022 ), the fed increased interest rates. 
On XX/XX/2022, I was informed that my loan was declined by the underwriter. This was despite having generous assets, a low-risk job, generous income, a top credit score, and being pre-approved. 
When I requested a reason for being declined, I was provided reasons that were based on wrong information. 
I requested that the agent provide the correct information to the underwriter, and he said he would do so. 
On XX/XX/XXXX, he informed me that they would not change their minds - despite basing their decision on wrong information. 
That same day ( XXXX ), I contacted the agent 's manager ( with the head of the mortgage department of the bank on cc ) requesting that he remedy this. 
He replied on XXXX to say that he could not reach the underwriter but that he spoke with the underwriter 's manager and that they were refusing to look at any new information or change their minds. 
I then called a different mortgage lender that same day and was granted a mortgage without difficulty -- though at an interest rate reflecting the fed increase in XXXX -- and was able to purchase the home on time. 

It appears that either : 1 ) the agent didn't want to admit his mistake, 2 ) the agent 's manager didn't want to admit his agent made a mistake, 3 ) the underwriter didn't want to provide a loan at the lower interest rate that was locked in, 4 ) the underwriter 's manager didn't care about my situation ( and/or didn't want to grant the loan at the lower interest rate ), or 5 ) the agent and the agent 's manager were lying for some reason. 

In any event, none of it makes sense - given how easy it was for me to get a mortgage with someone else at the current interest rate. 

And the human side of this was that my spouse and I went through severe mental anguish, became physically ill, had our vacation ruined, had to take dozens of hours off of work, had to pay extra to have multiple steps of the new mortgage expedited in order to be ready by closing, and had our relationship with the sellers strained- when we were still negotiating some last-minute arrangements with the house. 

The actions of First National Bank of Pennsylvania appear unethical and highly irregular.

Company response to consumer: Closed with explanation