Consumer complaint received 2017-10-10
Company: PNC Bank N.A.
State: AL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I. THE BANK UNILATERALLY EXTENDED THE INTEREST RATE LOCK AFTER THE RATE LOCK EXPIRATION DATE. 

The closing of our mortgage loan was originally scheduled for XX/XX/XXXX, and we had locked in our interest rate at 3.75 % until XX/XX/XXXX. The closing was delayed due to myriad of issues on the bank 's side, but by foremost, due to a delay in the bank receiving the appraisal report from its appraisal company. On XX/XX/XXXX, we were notified the closing will not occur on XX/XX/XXXX and we would not find out the new closing date until the following Monday, XX/XX/XXXX at the earliest. I asked the Mortgage XXXX XXXX ( MLO ) whether we can set the interest rate at the current rate rather than extending the rate lock after the rate lock expiration if the then current rate is lower than 3.75 %. The MLO advised me via text message on XX/XX/XXXX she " would fight for whatever [ she ] can get ''. We continued to ask about the then current interest rate but received no definitive answer. The closing was eventually rescheduled toXX/XX/XXXX - 4 days after the rate lock expiration date. Finally, on XX/XX/XXXX, the LMO advised us via email the rate lock at 3.75 % had been extended for an additional 5 days ( til XXXX/XXXX/XXXX ) at no additional charge to us. The bank unilaterally decided to extend the rate lock without discussing it with us or obtaining our agreement to it. We later found out the then current interest rate was 3.625 %. When we complained about the bank just extending the rate lock, the LMO said, the closing would have been further delayed if they had n't extended the rate lock. The bank was not truthful about its intentions on the rate lock and the rate lock extension. Based on the statements made by the LMO after the rate lock was extended, we learned that the bank would have never agreed to the lower interest rate. We asked the LMO ( who in turn asked her XXXX ) whether the bank would be willing to make any concessions at this late juncture and they said no. 


II. THE BANK HAS NOT YET REIMBURSED US FOR APPRAISAL AND CREDIT REPORT FEES AND FOR OTHER EXPENSES/LOSSES INCURRED AS A RESULT OF DELAY IN CLOSING CAUSED BY THE BANK DESPITE THEIR STATEMENTS TO DO SO. 

Due to the rate lock extension to XX/XX/XXXX, the bank issued a new loan estimate on XX/XX/XXXX. Although the LMO had informed us the bank would not charge us for the appraisal and credit report fees ( {$510.00} ) because the delay in closing was caused by the bank, those fees appeared on the loan estimate. We informed the LMO  of the errors on the loan estimate, and she informed us those fees would not appear on the XXXX XXXX ( CD ) which would be issued the following day. We received the CD at the end of the day onXX/XX/XXXX and those fees were on still appeared on the CD. Once again we questioned those fees and the AVP/North XXXX Market XXXX ( AVP ) of the bank informed us on XX/XX/XXXX those fees were left on the CD because of the timeline in getting the CD out to us. The AVP  further advised us that the bank will reimburse us for the appraisal and credit report fees after the closing and any other fees the bank feels is appropriate after the closing. We requested the bank give us our reimbursement check at closing on XX/XX/XXXX, but the bank failed to do so. The LMO  sent us an email on XX/XX/XXXX advising us she is checking with the AVP on the status of the reimbursement check. In response to the LMO 's email, we sent an itemized description of additional expenses we had incurred as a result the delay in closing totaling {$360.00}. The additional expenses consist of non-refundable airfare for flight booked for original closing date ( {$230.00} ) ; Power of Attorney ( POA  ) preparation fee ( {$75.00} ) ; mailing fee for POA ( {$27.00} ) ; recording fee for POA ( {$5.00} ) ; and wire transfer fee for funds due at closing ( {$20.00} ). It has been more than 3 weeks since we closed on the loan on XX/XX/XXXX. We still have not been reimbursed by the bank for the appraisal and credit report fee or for the additional expenses incurred as a result of the delay in closing. The bank 's lack of response is typical of their communication with us all throughout the loan transaction. 

All along the way leading up to the actual closing, the bank kept pressuring us that if we do not sign and return receipts and acknowledgement documents immediately, our closing would be further delayed. Everything had to be done urgently even though the bank sent us documents and requested additional information at the last minute at close of business.

Company response to consumer: Closed with monetary relief