Consumer complaint received 2017-08-31
Company: PNC Bank N.A.
State: NY
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage

Complaint:
I would like to submit a complaint against PNC Bank, N.A. regarding application, closing and disbursement issues for a home equity loan of credit product that I recently consummated. 

First, regarding my application processing, I originally applied for this loan on XXXX XXXX, XXXX. All information requested by underwriting was provided by XXXX XXXX, XXXX. An appraisal was conducted on my property on XXXX XXXX, XXXX. An approval decision regarding my application was not received until XXXX XXXX, XXXX due to numerous processing delays which very little or no reason was given. 

Issue 1 - A request for increased homeowner 's insurance coverage in the amount of {$650000.00} was received on XXXX XXXX, XXXX. At the time, this amount appeared excessive however, in order to close on the transaction as soon as possible, I increased my coverage. I believe this amount to be excessive, as the full-replacement cost of my property is around {$400000.00}. I am requesting this requirement be reduced accordingly. 

Issue 2- Bait and switch tactic - At application, the product description provided stated that the HELOC interest rate with be 3.18 % with interest-only payments. At my initial scheduled closing, I was told the rate I had been approved was 3.93 % and interest-only payments would require a rate of almost 6 %! This was a clear deviation from the advertised product and I believe is clearly unfair and deceptive in nature. After several complaints and more delays, I was able to close this loan at 3.43 % with interest only payments. As a XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, I believe my experience with this types of transactions allowed my to properly rectify this issue. However, I believe if this was done to the average consumer, PNC Bank could utilize predatory lending tactics to force homeowners into higher interest-rate products due to their limited understanding regarding the complexities of this product. 

Issue 3 - Disbursement delays - This transaction involved a single disbursement to refinance an existing, {$250000.00} construction loan to a private lender. My closing date for this transaction was on XXXX XXXX, XXXX. As of XXXX XXXX, XXXX, the previous loan has still not been paid off. I currently have two outstanding {$250000.00} loans - one to my previous private lender, and one to PNC Bank with interest accruing on BOTH LOANS. I am requesting an immediate credit of any outstanding interest with PNC Bank, immediate disbursement of the original {$250000.00} that was supposed to be paid at closing on XXXX XXXX, XXXX to my previous lender, and PNC Bank be fined and penalized for breaching fiduciary duties relating to properly disbursing fines. 

Due to these issues, I am also requesting PNC Bank 's mortgage origination practices be throughly examined to investigate any possible predatory lending tactics to ensure conformance with all legal and regulatory requirements and corrective actions are implemented so that consumers will not be harmed by these types of issues.

Company response to consumer: Closed with explanation