Consumer complaint received 2018-11-12
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: PNC Bank N.A. (IN)

I would like to file a complaint against PNC mortgage loan officer Mr. XXXX XXXX, NMLS # XXXX, with regards to misleading advice given during a recent loan application. 

My husband and I have had possession and have been living in our home since XX/XX/2012, with the intention to buy at a later date. We have paid the mortgage, which is currently in the name of my in-laws under PNC loan since our move-in date. 

During our occupancy, the title has remained in my in-law 's name. 

Deciding it was time to transfer the mortgage and title out of their name and into ours, my husband and father-in-law visited the PNC branch on XXXX XXXX XXXX in XXXX Indiana to discuss options. Upon arrival, they spoke with XXXX XXXX who put us in touch with mortgage officer, XXXX XXXX. 

The scenario of this being a family-to-family transfer, with details on our occupancy and title ownership were explained to Mr. XXXX, who advised that a cash-out refinance would be faster and easier to process than a conventional mortgage. 

He advised us to initiate a quit claim deed, transferring title ownership of the home to mine and my husband 's name would be required prior to proceeding with the cash-out refinance. 

Following Mr. XXXX instructions, the quit claim deed was executed through XXXX County Indiana on XXXX. 

Loan documents were e-signed on XXXX. 

On XXXX, I received a denial notice on our Cash out refinance application, due to " Terms not being met '' and immediately contacted Mr. XXXX to inquire on the details, as we had been assured over the preceding 2 weeks that the process was in order and no " red flags '' were present. 

On that same day, I received the following text from Mr. XXXX : " Hey XXXX, I've got different news than I think either of us was expecting. 

Because of title seasoning requirements ( which were not well enough defined considering yourself and XXXX 's scenario ), the UW are going to deny the refinance + cash out. 

Option 1 ) proceed as a conventional purchase. Might be a better/more direct solution. Interest rate will be lower on your end and funds from equity would be distributed all at closing. We would need a purchase agreement between both parties should agreed purchase price. Once we have the purchase agreement and new application e-signed, I can take care of the rest. 

Option 2 ) wait 12 months until the title seasoning is met. '' Later that evening, I emailed Mr. XXXX to ask about how the deed, having been transferred to my name under his advisement, would affect my application for a traditional mortgage. 



On Thursday, XXXX, I received another text message from Mr. XXXX stating : " One thing for sure ( you're not going to like me ), if XXXX 's parents were completely removed by the quit claim deed they will need to be put back on. I'm coming up with a few purchase scenarios/loan types to send over, along with a blank purchase agreement. '' Later that afternoon, I received a telephone call from Mr. XXXX, informing me that the deed transfer would, in fact, affect my ability to apply for a conventional mortgage with PNC. 

When asked about options for transferring the deed back into my in-law 's name, he informed me that this would most likely cause a " red flag '' when performing a title search as part of the underwriting process and advised that we not change the deed, and that the deed would need to be in my name for a minimum of 6 months in order to process a conventional mortgage application. 

In that call, he advised that there was no further action available to us to continue the process with PNC and advised me to seek out another lender. 


This is infuriating, having provided full disclosure that this was a family-to-family transfer during the initial conversation and following his advice regarding the quit claim deed. 

His failure to evaluate all of the details provided to him ( he was informed from the initial conversation that this was a family-to-family transfer of title and multiple times thereafter ) have resulted in pure frustration for the PNC mortgage process and left me without options. 

Additionally, there seem to be multiple inconsistencies in the information provided by Mr . XXXX. ( see from the above Mr. XXXX advised both XXXX and XXXX time periods for title seasoning ). 

While I understand that errors can happen, Mr. XXXX 's gross negligence and advice that I must now " find another lender '' is unacceptable. 

Due to insufficient research and incorrect advice given by your mortgage employee, I am now stuck in a holding pattern until title seasoning is complete. To this point, I'm still not certain the required amount of time, as I've received 2 time periods from Mr. XXXX. 

His oversight and incorrect advice have now caused significant delays, not to mention many hours of work on my time to investigate mortgage underwriting laws which should have been apparent to an employee conducting mortgage origination and offering advice.