Consumer complaint received 2019-06-19
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage — 
Company: PNC Bank N.A. (AL)

In XX/XX/XXXX I applied for a HELOC with PNC Bank. During the time of closing I was provided omitted and confusing financing information by the loan officer XXXX XXXX ( sp ). 

1. We considered an adjustable rate vs a fixed rate HELOC. We were also considering a first mortgage on a home that was paid fully in cash for {$410000.00}. 

2. It was fully discussed with Mrs. XXXX that we needed to remove {$240000.00} to place back into a IRA for tax purposes but planned on paying this loan off in two years due to tax considerations. Mrs. XXXX told us about the loan process, the difference in adjustable vs fixed interest rates and closing cost. 

3. We were told verbally by Mrs. XXXX that the loan did not have any closing cost as long as the loan was kept for a certain period of time as well as there was a XXXX dollar annual fee. In addition, we were told that we could lock the loan into a fixed HELOC rate at the days rate we locked it in with a one time XXXX dollar fee. That was the only stipulations we were told. 

4. In XX/XX/XXXX, the rates began to climb. I went to the bank to lock the rate in. Mrs. XXXX was not there so I spoke to another loan officer to lock the rate and switch from a variable to fixed rate. It was at that time that I was told that in addition to the XXXX dollar fee it would also raise the rate to one full percentage point. I told the loan officer that we were never told this. The officer said she would have received. XXXX call us when she returned. She called me back the same day where I told her what I had just learned. She specifically told me that she was not sure of that but she would call me back with more information. When she called me back she apologized and said it would be an additional 1 % to lock the rate, and that she had been unaware of this. Therefore, this information could not have been shared with us at the time of closing if she was unaware of the rate addition 2 months later. 

5. We were required to go to the bank on three separate occasions to sign closing papers as Mrs. XXXX had made errors in the previous two closing documents. This became very confusing to say the least. During the two additional closings we were not given any verbal communications but only to ask us to resign what we had already signed. The two additional closing documents were back dated with us being told to write the original closing dates and not the date we actually signed the new documents. 

6. The notary was also back dated to the original closing date and not the actual dates of the additional signings. 

7. The paperwork we were given never details the one additional percentage point as it was verbally explained. 

8. Due to the rising interest rate we decided to apply at a separate bank for a first mortgage at or about the variable rate we originally took with PNC bank. This caused us to take on a second closing cost for the new loan. 

9. The house was financed with XXXXXXXX XXXX and the PNC loan was closed in mid XX/XX/XXXX. 

10. PNC bank is now asking us to pay the original closing cost of approximately 800 dollars. 

11. I lodged a complaint with PNC Bank where I allege that we were not provided with all of the factors of the HELOC that would have allowed us to make an informed decision. To say the least it was all very confusing, the additional closings and the omission of the rate addition. 

12. My allegations that under the Truth in Lending law, we were not provided with relevant information to allow us to make an informed decision. 

13. I had another bank loan officer review the paper we signed and he stated that the form was a generic form and that he did not see any mentioning of the 1 % rate increase if the loan were changed from a variable to fixed rate. 

14. We are only asking that the XXXX dollar closing cost be removed due to the failure of Mrs. XXXX to disclose the loan information accurately and fully. 

15. During A PNC review they said everything was done correctly and they would not reverse the XXXX dollar closing cost. We disagree with this assessment.