Consumer complaint received 2021-08-31
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PNC Bank N.A. (IL)

In XX/XX/XXXX, I requested a mortgage forbearance plan through PNC Bank as my job was impacted by Covid. I was approved in XXXX but continued to make payments in XXXX, XXXX and XXXX. I began to utilize the forbearance plan in XX/XX/XXXX. According to the CARES Act and XXXX XXXX guidelines, payments were considered " suspended '' while on forbearance. No additional interest, fees or capitalization could apply to forbearance plans initiated by Covid. 

In late XXXX I was called back to work. I immediately called PNC, my mortgage servicer, and said that I would be able to resume payments. After speaking with PNC loss mitigation representatives, I opted to enter into the payment deferral plan which was to take the principal and interest payments that were missed - from XXXX to XXXX - and move them to the end of the loan, payable upon maturity of loan. I began making payments on XX/XX/XXXX. 

On my XX/XX/XXXX mortgage statement, my principal balance was increased from {$190000.00} ( which was my balance when I entered into the forbearance plan ) to {$190000.00}. I have had several conversations with various representatives at PNC to ask why they added an additional {$5300.00} to my principal amount and they insist they are " required '' to add the 6 months of missed principal and interest to my overall principal amount IN ADDITION to adding the missed payments to the end of the loan. The CARES Act and XXXX XXXX do not allow capitalization which is exactly what PNC is doing. I requested a copy of my payoff to see what the amount owed truly is. 

This mortgage account was open in XX/XX/XXXX in the amount of {$200000.00}. The payoff, dated XX/XX/XXXX, states that I now owe {$200000.00}. After paying monthly from XX/XX/XXXX through XX/XX/XXXX, I now owe more than I originally took the loan out for? Either the organization does not understand that the CARES Act does not allow for missed principal and interest payments to be moved to the current principal balance or they are attempting to " double dip ''. 

The documents I have and have agreed to say nothing about adding my deferred principal and interest payments to my principal balance. Adding this amount is essentially adding a penalty fee for entering into a forbearance plan. This " penalty fee '' has costed me almost three years of principal balance payments. It is as if I have only paid {$700.00} to the principal over the course of 3 years.

PNC refuses to address this and insists that this is how XXXX XXXX " requires '' they address the missed payments while on a forbearance plan and subsequent payment deferral plan. It is just the opposite really, they are not allowed to add any additional fees, interest, modifications or capitalization on Covid related forbearance plans. They are certainly not legally allowed to adjust my principal with the past due P & I amount but this is exactly what they did on XX/XX/XXXX in the form of a " principal adjustment ''. I need assistance with this situation as my next step is to higher legal counsel. This is fraudulent. I am certain that I am not the only one that this has happened to. PNC is taking advantage of consumers that are already in a tough position due to Covid. This is exploitation. 

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