Consumer complaint received 2019-03-02
Company: PNC Bank N.A.
State: WA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
Background : In XX/XX/XXXX XXXX XXXX XXXX ( XXXX ) held both the Promissory Note and the servicing of the mortgage on my home. During the process of renegotiating the loan, the authenticity of the signature on the note came into question. Within three months of the signatures doubtful authenticity becoming apparent, XXXX sold the note to PNC NA ( PNC ).,  but retained the servicing. 

In XX/XX/XXXX XXXX started foreclosure action against me, using this spurious note. At the time, as per the Revised Code of Washington ( RCW ) 61.24 et seq., it was required the Beneficiary offer to mediate prior to foreclosure. I was not offered this option prior to commencement of foreclosure. I was informed, AFTER commencement of foreclosure, that I had chosen not to mediate. However, the date when I supposedly selected not to mediate, I was in a training class sponsored by the US Department of Commerce ( document I ). This falsified XXXX  document was included in the Notice of Default in XX/XX/XXXX. 

One of the requirements of the mandatory Washington State foreclosure mediation process is for the Borrower to produce a government issued identification with a signature and address to certify that they are the owner and that they occupy the property. On XX/XX/XXXX, XXXX documented that the signature on my government issued ID did not match the signature on file i.e. the Promissory Note. At this time, XXXX XXXX, an organization contracted by the State of Washington to facilitate the mediation process, suggested that I contact an attorney as this problem was out of their charter. 

Mediation plans were agreed upon and proceeded, however, the Beneficiary failed to comply with the dates proposed and it had to be rescheduled several times. The mediation was held on XX/XX/XXXX. It was attended by me, XXXX XXXX, the alleged note signer ; my attorney, XXXX XXXX ; the mediator, XXXX XXXX ; attorney XXXX XXXX from XXXX XXXX XXXX XXXX ( XXXX ) the Trustee ; and a representative from PNC, XXXX XXXX. The PNC representative attended via telephone. PNCs representative put a proposal on the table verbally. It was agreed to by the parties. The Mediator agreed to continue the mediation to XX/XX/XXXX, after requested financial documents were produced. My documents were delivered to the Beneficiary in a timely manner ( XX/XX/XXXX ) showing the ability to meet revised loan requirements. On or about XX/XX/XXXX, the Trustee complained to the Mediator that documents had not been delivered, claiming that additional documents were necessary. These additional documents were in fact documents that were not articulated nor agreed upon during the first mediation session. The Mediator did not follow up on this claim made by Mr. XXXX with me as per Department of Commerce mediation guidelines. This specious claim by the Trustee ( XXXX ) effectively torpedoed the mediation process. On XX/XX/XXXX, XXXX announced it would cease operations on XX/XX/XXXX and all accounts would be transferred to other firms. In addition, on or about XX/XX/XXXX, XXXX XXXX XXXX employment was terminated at PNC. I filed a complaint on this matter with the Washington State Attorney General concerning the issues of misconduct and malpractice on XX/XX/XXXX. 

Sometime either before or after this XX/XX/XXXX date, the Consumer Financial Protection Bureau ( CFPB ), initiated an investigation into the Beneficiary according to documents obtained in discovery ( document II ). This electronic communication gives a date of XX/XX/XXXX. 
On or about XX/XX/XXXX a new Successor Trustee was appointed by the Beneficiary in violation of RCW 61,24,010. A  restraining order was issued and the Beneficiary DISCONTINUED the foreclosure on XX/XX/XXXX. It was later ascertained that the order to DISCONTINUE the foreclosure sale was in response to action by the CFPB ( document III ).  The term DISCONTINUE is a legal term used in RCW 61.24.et seq. It clearly states that a DISCONTINUANCE is issued when the terms and conditions of the Deed of Trust have been met to the Beneficiarys satisfaction at least 11 days before the sale date. 

In XX/XX/XXXX, I sued the Beneficiary and its Trustee for breaches of RCW 61.24.at seq. It wasnt until after the judge made the ruling that we discovered the attorney for the Beneficiary and Trustee had presented false documents in court, a CR -11, RCW 9A.72.020, and 18 USC 1621 violation ( documentation available IV ). I contacted the law offices of XXXX XXXX XXXX XXXX ( legal representative for both the Beneficiary and Trustee in this action ) and confronted the attorney with these facts that were confirmed by the State of Washington ( document V ). XXXX XXXX XXXX XXXX agreed that no further foreclosure action would be taken, as it would call into question the validity of all notarized signatures presented and attested to their authenticity in court. 

From XX/XX/XXXX to the present, there were numerous communications that occurred between the myself and representatives of PNC, In those communications PNC representatives stated numerous times, in writing and in recorded telephone conversations, that the Beneficiary was unaware of any activity that occurred prior to PNC becoming the Servicer of the loan in late XX/XX/XXXX, or any agreements that were reached verbally with XXXX XXXX XXXX XXXX. 

After filing papers in court to DISCONTINUE the foreclosure on XX/XX/XXXX, the Beneficiary then attempts for the third time to foreclose on the property on XX/XX/XXXX, approximately two and a half years after filing the Discontinuance. PNC, ( now the Servicer AND Beneficiary ) allegedly hired, XXXX XXXX as its attorney and XXXX XXXX XXXX as the Successor Trustee, in XX/XX/XXXX ( document VI ). 


COMPLAINT : PNC, XXXX XXXX XXXX ( XXXX ) as Successor Trustee, and its attorney XXXX XXXX have violated numerous sections of the RCW. To be brief, as this is not a complete list : 1 ) RCW 61.24.010 ( 2 ) The Beneficiary has appointed three Successor Trustees without any of them resigning. This statute gives the procedures for replacing the trustee. It gives specific instructions on documents that must be filed, including a document titled Resignation of Trustee ( RT ). The significance of the RT is it represents the surrendering of the originals of the Deed of Trust, Promissory Note, and Title back their original possessor. 

2 ) RCW 61.24.010 ( 3 ). Under this statute, the Successor Trustee can not have a Fiduciary Obligation to the Beneficiary. However, XXXX mailed a letter via USPS dated on or about XX/XX/XXXX, in which XXXX clearly states that they are a Debt Collector for the Beneficiary. 

3 ) RCW 61.24.020 XXXX and XXXX share the same address, office and phone number. This calls into question the separation between the Beneficiarys attorney ( XXXX ) and the Successor Trustee ( XXXX  ). This calls into question whether the Successor Trustee could operate in an impartial manner. 

4 ) RCW 61.24.030 ( 7 ) a The Beneficiarys claim was disproved in its letter on XX/XX/XXXX when it stated that the signature on the promissory note did not match the signature on the officially issued government identification. The notary process was also fatally flawed, which was communicated to XXXX XXXX XXXX XXXX in XX/XX/XXXX. 

5 ) RCW 61.24.030 ( 7 ) b XXXX violated this statute when it declared that they were a Debt Collector and therefore had a Fiduciary Obligation to the Beneficiary. 

6 ) RCW 61.24.030 ( 8 ) The Beneficiary or Trustee is required to send a document attesting that the Beneficiary is in possession of the Promissory Note, via USPS registered or certified mail, return receipt requested. The Beneficiary or Trustee did neither, as sending the document via USPS would have been in violation of 18 USC 1341 : Frauds and Schemes, since they were aware that the note was specious.

7 ) RCW 61.24.et seq A Discontinuance of a foreclosure is the attestation by the Beneficiary that the default ( s ) have been cured and the Trustees fees and costs are paid. In this case, the Beneficiarys current attorney ( XXXX ) has claimed ignorance of this Discontinuance of Trustee Sale and the legal ramifications of that action. 

8 ) From the XX/XX/XXXX internal email evidence obtained through discovery for my lawsuit against the Beneficiary and the Successor Trustee, their employees received the message We are instructed to Cancel our sale on all CFPB Holds that are requested by our client. 
Another crucial communication occurred on XX/XX/XXXX, sent from the Successor Trustee to the XXXX XXXX XXXX XXXX to please provide a copy of the Notice of Discontinuance of Sale. Our attorney needs it for our defense docs in a litigation action. 
Was this yet ANOTHER litigation involving my mortgage or was the Discontinuance of the foreclosure on our home part of the settlement to reduce the Federal fine for PNC? Once that reduced fine was levied from CFPB, DoJ, SEC, the Federal Reserve, and/or Office of the Comptroller, etc., did the Beneficiary then wait for sufficient time to elapse to RESTART the foreclosure process in hopes they were no longer under scrutiny ; no Federal agency would be monitoring them ; and documentation could be conveniently misplaced, as evidenced by the lack of pass along documentation admitted by the Beneficiarys attorney ( XXXX ) in the XX/XX/XXXX mediation. 
As the email of XX/XX/XXXX uses the plural tense it can be surmised that this was happening in more than one of the Beneficiarys foreclosures. According to press reports there were thousands of botched foreclosures.

Conclusion : From this initial review of the Laws of the State of Washington, no doubt there are other violations that can be sited. In the State of Washington, there have been approximately 400 foreclosures by XXXX in the last 8 months that may not be in  compliance with RCW 61.24.et seq. Other states undoubtedly have similar laws on their books. It is my suggestion that the CFPB notify immediately all state Attorney Generals to place a hold on all foreclosures involving PNC, XXXX XXXX, and/or XXXX pending an investigation into their noncompliance.

Company response to consumer: Closed with explanation