Consumer complaint received 2020-11-20
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: PNC Bank N.A. (NJ)

On XX/XX/XXXX, I signed disclosures with PNC bank for a $ XXXX, 30 year Interest Only mortgage with a XXXX ARM. The disclosures I signed showed a rate of 3 % with 0.425 % ( {$3100.00} ) point buydown. 


On XX/XX/XXXX, I received the appraisal valuing the property at $ XXXX. The bank sent me updated disclosures and revised the point buydown from 0.425 % ( {$3100.00} ) to 0.8 % ( {$6000.00} ). When I called my banker to discuss this, she stated it was based on the LTV. This was never disclosed to me. The only thing that she had stated at the time of the loan application is that if the LTV is below 65 %, the rate would be 2.875 % with a 0.3 % buydown and above 65 %, it would be 3 % with a 0.425 % buydown. I have been in contact with my banker several times over the last two weeks to have this addressed and corrected. On XX/XX/XXXX, I requested from the bank the disclosures that speak to pricing increasing based on LTV. I was referenced to the disclosure documents that has the following language with no mention that LTV would affect pricing. Below is the full excerpt : " PNC Mortgage wants to help you understand factors that may affect the pricing of your loan.

Please review the information below and contact your loan originator if you have any questions regarding your loan pricing : -The interest rate and/or discount points you will pay for your loan may be affected by certain details of your loan.

-For example, the amount of income you document for us and the type of documentation you provide for that income may affect your interest rate and/or discount points.

-In some cases, documenting additional amounts of income or providing alternate types of documentation may result in a lower interest rate and/or discount points on your loan. '' This deceptive practice of changing the cost of the loan without disclosing that the LTV could affect the loan pricing is unfair and concerning especially since we are having issues regarding the appraisal and therefore find myself in this situation of filing a complaint as I have tried to work with the bank to address my concerns. 

By way of background on the appraisal, below is a summary : On XX/XX/XXXX, I received the appraisal. There were several issues noted in the appraisal as the appraiser did not make appropriate adjustments for the property such as location, comparable comps, finished & walkout basement, age, etc. The appraisers comments regarding valuations is inaccurate. He stated that the town 's inventory is generally stable and supply/demand is in balance however, the town has less than one month of inventory. Due to COVID, home prices have materially appreciated in this area and this was not taken into account by the appraiser. His valuation is below the tax assessed value. The banker agreed with my assessment and requested I file an appeal so they could order a second appraisal, which I filed on XX/XX/XXXX. Rather than order another appraisal, the collateral department had the appraiser try to rectify the issues, which are still not accurate and do not properly reflect the value of the property. In both cases, the collateral department signed off on the appraisers work as being accurate when there were multiple errors and failed to challenge his work. I had to point out the errors in the appraisal before they went back to him. I am being told that the bank will not order another appraisal despite the issues in the appraisal.