Consumer complaint received 2016-08-21
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: PNC Bank N.A. (MD)

Financial Institution : PNC Mortgage, a Division of PNC Bank, NA My spouse and I refinanced our residence on XXXX/XXXX/XXXX with a mortgage from XXXX XXXX XXXX ( XXXX XXXX XXXX ). The loan note ( Attachment XXXX ) specified that payments would be made every 14 days. The loan note also specified that the manner of payment would be automatic deduction from an account maintained with XXXX XXXX XXXX ( in this case our checking account ). 

The note was for 15 years, maturing on XXXX/XXXX/XXXX, but making biweekly payments would cause the loan to be paid off on XXXX/XXXX/XXXX. In XXXX XXXX XXXX XXXX was acquired by PNC Bank. 

Several months ago we realized the payoff date was approaching, but when we checked our mortgage statement, it became obvious that the outstanding principal would not be paid off by XXXX/XXXX/XXXX. We first contacted our local PNC Bank, then later corresponded directly with PNC Mortgage ( PNCM ) customer service. PNCM is a division of PNC Bank. Neither had an explanation for the discrepancy, but PNCM did provide an amortization ( part of Attachment XXXX ) that ran from XXXX/XXXX/XXXX to XXXX/XXXX/XXXX. The final payment would be on XXXX/XXXX/XXXX. The payoff date computed by PNCM is after the expiration of the 15-year loan period. 

From the time of the acquisition until XXXX/XXXX/XXXX XXXX XXXX , XXXX serviced the loan for PNC Bank. PNCM handled the loan after that. 

In its letter of XXXX/XXXX/XXXX ( Attachment XXXX ) PNCM stated they did not have loan history prior to XXXX ; they asked us to forward any information we might have. We searched back through old XXXX XXXX XXXX checking account statements and found that after the first payment was properly taken on XXXX/XXXX/XXXX, subsequent automatic deductions were taken at a variety of different intervals. The vast majority of payments were taken at intervals greater than 14 days, the longest being 29 days. This explained why the outstanding balance was so high : principal was being paid off much slower and interest was accruing faster than would be the case if XXXX XXXX XXXX had made payment deductions as required by the loan note. We forwarded this information to PNC ( Attachment XXXX ). 

XXXX XXXX XXXX monthly checking account statements covered from the middle of one month to the middle of the next. We noted the mortgage payments as statements were received, but it did not occur to us to calculate the number of days since the previous payment. A reasonable person would assume a financial institution that makes loans could and would compute automatic payments properly. 

On XXXX/XXXX/XXXX PNCM replied that they were not able to help in this matter ( Attachment XXXX ). They suggested we contact XXXX XXXX XXXX for assistance. As mentioned above, PNC Bank had acquired XXXX XXXX XXXX in XXXX. There is no XXXX to contact. PNCM seems to feel that it has no responsibility for the legacy bank 's failure to carry out its requirements under the loan agreement. 

Attachments : 1 : XXXX/XXXX/XXXX Loan Note 2 : XXXX/XXXX/XXXX Letter from PNCM ( includes amortization ) 3 : XXXX/XXXX/XXXX Letter to PNCM 4 : XXXX/XXXX/XXXX Letter from PNCM