Consumer complaint received 2022-11-26
Company: PNC Bank N.A.
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Continuation to complain # XXXX On XX/XX/XXXX I submitted a request to my mortgage company ( PNC Bank ) to close the escrow account. After many calls and follow-ups, I finally received a letter on XX/XX/XXXX indicating my escrow account can be closed but I have to pay a fee of {$1100.00} for " closure fees '' and submit a consent form. I signed the form and sent it back to the bank via mail as requested. On the night of XX/XX/XXXX at XXXX EST, I called and spoke to XXXX at PNC requesting information regarding the fee they disclosed and where in our document was this acceptable. The lady on the phone, after several minutes of review, indicated she couldn't find the clause in the documents that allowed them to charge me this fee. I requested her to have someone call me and drive me through the document as to where those fees were agreed upon in our document. So far, I have not heard back from the bank and I don't want to delay more the closing process. I just want indication as to what we agreed upon is correct and that I'm to pay those fees. If that was not the case, I shouldn't be charged for that. 

PNC issued a letter dated XX/XX/XXXX in which there were referenced 2 sections of the security deed as their reasoning to charge me 0.25 % of unpaid principal ( {$1100.00} ) as what they have called " escrow account closure fee '' related to my approved request to close my escrow account. These 2 sections are incorrect in nature as to allow PNC to charge this fee due to the following reasons : 1. Section 3 " Fund for escrow items '' states as indicated by PNC that the borrow shall pay the lender the funds for " Escrow Items ''. PNC failed to acknowledge that this same section defines clearly these escrow items as a. taxes and assessments, b. leasehold payments or ground rents, c. premiums for insurance, and d. mortgage insurance. None of these defined " escrow items '' include any closure fees for the escrow account.

2. Section 14 " Loan Charges '' states as indicated by PNC that regarding other fees they are allow to charge for them. However, PNC failed to identified that this deed section is related to borrower fees in connection to borrower 's default ( attorney 's fees, property inspection, valuation fees ). Additionally and possibly most importantly, this section is dedicated to " LOAN '' charges. My request is fully dedicated to " ESCROW Account '' closure which is my own savings account dedicated to pay for home insurance and property taxes, not related to the actual note in which I have not defaulted in any way. 

The security does not define in any section that was agreed upon execution of this document that borrower must pay any fees to close the escrow account. This might be a PNC policy to their customers but it is not part of our agreement. Actually, when we signed the loan documents for our property ( including the property deed ), the initial note was executed with XXXX Mortgage and not with PNC. PNC acquired the note after the document execution and accepted the terms of this note as their own. 

PNC has not provided satisfactory information/documentation that allows them to charge us an escrow account closure fee of 0.25 %.

Company response to consumer: Closed with explanation