Consumer complaint received 2020-08-01
Company: PNC Bank N.A.
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
The Good Faith Estimate Statement was inaccurate and did not disclose the Best Available Property was for the two property tax years that would be disbursed from the initial escrow computation year period. 
XX/XX/XXXX, the PNC Bank Mortgage Attorney, Mr . XXXX affirmed : " we ( PNC ) are unaware that RESPA requires the use of a specific methodology hen calculating the estimated real estate taxes that appear on the GFE. '' State of Texas Property Tax Codes provide methods for independent accurate calculations and the XXXX County Texas provides estimated and actual Property Tax estimates when contacted as Federal Regulation-Industry Standard 12 CFR 4330.1 affirms : " WHEN THE EXACT AMOUNT OF PROPERTY TAXES IS UNKNOWN THE MORTGAGEE SHOULD CONTACT THE TAXING AUTHORITY WHICH HAS JURISDICTION OVER THE PROPERTY TO OBTAIN AN ESTIMATE OF THE TAX BILL. '' XX/XX/XXXX XXXX XXXXXXXX for THE PNC BANK MORTGAGE Qualified Written Requests of XX/XX/XXXX and XX/XX/XXXX from the Consumers of why the XXXX Property Taxes were not included in loan origination, settlement and servicing documents ( documentary evidence available replied : " THE XXXX TAX LIABILITY WAS KNOWN TO BE BASED ON UNIMPROVED PROPERTY THEREFORE THE ANTICIPATED FULL ASSESSED TAX AMOUNT WAS NOT USED. '' Property Taxes in Texas are billed and paid in arrears for unimproved and improved property. 

Federal Regulation 12 CFR 1024.17 ( c ) ( 7 ) provides methods for Servicers estimates of property tax disbursements. 
The XXXX Unimproved and XXXX Improved Property Taxes were to be disbursed in the initial escrow computation year period : XX/XX/XXXX thru XX/XX/XXXX. 

The XXXX estimated Property Taxes to be billed XX/XX/XXXX were less than one month awy t the loan settlement of XX/XX/XXXX and could have been a Pre-Paid item for loan settlement documents ( within 60 days of the loan settlement ). 

Where on the XX/XX/XXXX pre-approval loan application, the XX/XX/XXXX loan application and the GOOD FAITH ESTIMATE OF XX/XX/XXXX are the BEST AVAILABLE XXXX ESTIMATED UNIMPROVED PROPERTY TAXES FOR THE 10 MONTHS IN PROPERTY TAX YEAR XXXX BEFORE THE ESCROW ACCOUNT BEGINNING XX/XX/XXXX ARE THE ESTIMATED XXXX PROPERTY TAXES OF {$60.00} AND {$260.00} TOTAL {$320.00} DISCLOSED TO THE CONSUMER BEFORE THE CONTRACT TO BUILD THE HOUSE OF XX/XX/XXXX,, XXXX? 

Where on the XX/XX/XXXX pre-approval loan application, the XX/XX/XXXX and the GOOD FAITH ESTIMATE OF XX/XX/XXXX ARE ESTIMATED BEST AVAILABLE XXXX IMPROVED PROPERTY TAXES OF APPROXIMATELY {$6600.00} ANNUALLY DISCLOSED? 
The SWORN DEPOSITION of XX/XX/XXXX by PNC Bank Mortgage CONFIRMED AN ADDITIONAL VERBAL DISCLOSURE XX/XX/XXXX FOR ESTIMATED APPROXIMATE {$4000.00} ANNUAL PROPERTY TAXES WAS DISCLOSED TO THE CONSUMERS. 

Federal Regulation 12 CFR 3500.7 and 12 CFR 1024 regulations to the loan originator for the GOOD FAITH ESTIMATE STATEMENT TO CONSUMERS : MUST BE PREPARED COMPLETELY AND ACCURATELY MUST INCLUDE ALL CHARGES HT WILL BE LISTED IN SECTION L OF THE HUD-1 SETTLEMENT STATEMENT MUST BEAR A REASONABLE RELATIONSHIP TO THE BORROWER 'S ULTIMATE COST FOR EACH SETTLEMENT CHARGE AND MUST BE BASED ON EXPERIENCE IN THE LOCALITY OR AREA IN WHICH THE PROPERTY INVOLVED IS LOCATED. 

{$4200.00} for estimated total UNIMPROVED XXXX PROPERTY TAXES AS {$3500.00} FOR THE TEN ( 10 ) months in Property Tax Year XXXX did not a " reasonable relationship '' to the ultimate alleged " Actual '' settlement cost disclosed for the HUD-1 Settlement Statement of {$1500.00} disclosed for XXXX ACTUAL Property Tax Reserves. 
The XXXX County BEST AVAILABLE ESTIMATE of {$320.00} was disclosed XX/XX/XXXX to XXXX XXXX in documentary evidence, The disclosed XXXX Unimproved XXXX County Property Tax amount of {$4200.00} disclosed to be billed XX/XX/XXXX was apparently provided by the AUTOMATED LOAN AND DISCLOSURE COMPUTER SYSTEM of PNC Bank Mortgage which was incorrect/inaccurate and excessive as disclosed on the pre-approval loan application document of XX/XX/XXXX before the earnest money contract with the builder of XX/XX/XXXX and the verbal property tax disclosure of XX/XX/XXXX as confirmed by PNC Bank Mortgage in the Sworn Deposition of XX/XX/XXXX000.

How many of the additional over 1600 loan origination, settlement and servicing complaints by Consumers ( over 150 from Texas ) by PNC Bank Mortgage clients had similar problems with the loan origination, settlement and servicing disclosures due to apparent computer programming errors PNC Bank Mortgage Staff were unable to comprehend the apparent computer errors as provided in the Federal Deposit Insurance Corporation ( FDIC ) memo to lenders/servicers of residential mortgage loans-Conventional and Federal Insured?

Company response to consumer: Closed with explanation