Consumer complaint received 2015-11-19
Company: PNC Bank N.A.
State: NC
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Application, originator, mortgage broker

Complaint:
I recently went to PNC Bank in XXXX, NC to pursue a refinance on our house loan with a Harp Loan. A PNC bank representative had told us we were eligible for this type of refinance and it sounded sensible. When we met to proceed with the refinance, she told us that after further looking into it, we did n't qualify due to my employment status changing since my loan originated, but instead she had a good loan to offer us. She offered us a 15-year refinance at 4.14 % with no loan fees, or closing costs, and said this was the best savings she could offer. She told us the only difference between this and our current loan was that we would have to pay our own taxes and insurance, and would need to set up an automatic draft payment. If we paid off the loan before 3 years, we would pay a fee of around $ XXXX. We were looking for the lowest interest rate on a loan around 17 years or less, with the lowest closing costs. 

We had a current loan with PNC with 17 years left and around $ XXXX left on an original 30-year loan at 5.25 %. Since the loan rep told us this was the best she could offer, and we did not qualify for a Harp refinance, we took it. 

Upon closing the loan, when we were signing the very last of many papers, we were told that we had to open an account at PNC in order to secure the loan. This was the first we heard of that, and since we were 99 % done with the process, agreed to do this, even though we were disappointed with this lack of transparency. 

The next red flag that went up for us occurred the following week when we called the mortgage department to confirm our draft from the PNC account to pay the mortgage. We were told we did not have a mortgage with PNC. They recognized that our last mortgage had been paid off. After much confusion, the department eventually informed us that we now had a Home Equity loan, and they would transfer us to that department. At no time during our meetings or on any of our paperwork were we informed that we were getting a Home Equity Loan vs a traditional Home Mortgage. This lack of disclosure greatly disturbed us. 

When calling the loan rep to discuss our dissatisfaction with these XXXX issues, she blew off our concerns, and made excuses and denied any wrongdoing. Due to her poor response, I asked for her supervisor 's phone number, which we called, but never received a response. We did receive XXXX email from an " Escalation Department ''. We have called twice and leave XXXX messages. No one has returned our call. 

The most disturbing part of this loan process occurred today. After receiving another qualification letter in the mail for a Harp Loan, I called a loan representative to discuss my eligibility for this type of refinance. I gave him all my information on my past loan, and other eligibility information, and after looking into it, he assured me that as far as he could tell, I did in fact qualify for a Harp Loan, until the point in which I secured this recent loan with PNC. He said that PNC has now pulled the rights for any Harp Loan qualifications, and he is sorry, but we are no longer eligible. He also apologized that I received misinformation from PNC about any change in my employment being a factor in qualifying for a Harp Loan, clearly stating that job status is not a factor. The PNC representative clearly told me that we did not qualify because I was employed at the time of my original loan, and now currently am not. 
Therefore, we could not pursue a Harp Loan. I was also informed that 4.14 % on a 15 year mortgage is NOT anywhere close to the best rate I could get, and it sounds like I was given misinformation by the PNC representative about better options. 

We are greatly disturbed by the misinformation given us by PNC, believe we were cheated and misled, and think that our opportunity to pursue a Harp Refinance has been stolen by a dishonest banker.

Company response to consumer: Closed with explanation