Consumer complaint received 2018-07-30
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: PNC Bank N.A. (PA)

My husband ( present ex-husband ) in XX/XX/XXXX purchased a home in XXXX, PA using PNC Mortgage. In XX/XX/XXXX we legally separated. I kept exclusive possession of the house by mutual and court agreement. 

In XXXX we placed the house up for sale. In XX/XX/XXXX by order of the Divorce Decree from XXXX Family Court, we were to place the house up for sale and recognized ( even the court recognized it would need to sell via Short Sale which was written in the Divorce Degree ) due to the house still being underwater from the real estate crash years prior. We could not make it out of the house without owing money. 

I attempted two different Realtors, who both yielded the same results. After the crash, we did not have any equity in the home. I applied for a Short Sale three times, two of which we secured a buyer, with money in escrow and approved for the mortgage to buy the home. The short sale would have only yielded {$6000.00} less than what was owed on the house and for PNC/us to clear the mortgage. Sadly, both of these short sales were denied and our buyer was refused. PNC Mortgage never provided a reason why. I proceeded with obtaining an attorney XXXX XXXX, but he was not able to break through the walls of PNC or speak with their legal counsel. I wanted to do whatever I could to protect this house from foreclosure. 

I reached out to HUD and HOPE. A HUD representative, XXXX XXXX, was able to contact someone at PNC who stated they would be open now to another Short Sale application if we had a buyer again and/or a HAMP agreement. 
Unfortunately, the house was not up for sale at this time, and the other buyers had walked away. I decided to go forward with the HAMP application. At this point, this entire ordeal above had now spanned 1 1/2 years. I could never speak with the Mortgage contact person XXXX, only customer service reps in the evening. All told me the same thing - my ex-husband would have to send in financial information related to his employment etc, but he had already remarried, had not occupied this home for over5 years at that point, had no financial responsibility per the court to make mortgage payments and signed exclusivity to me. I was further informed by representative, if I supplied the divorce decree, the order from the XXXX Family Court Divorce Agreement he would be taken off the mortgage loan once it was refinanced as part of a divorce agreement. Keep i mind, I had even asked if I would need a Quit Claim and was told by three representatives over the 1 1/2 years, that no this was sufficient and my hardship letter should speak to the goal of having only one name and his removed - also part of the divorce agreement. 

XXXX XXXX called me inXX/XX/XXXX to inform me to resubmit the Short Sale and HAMP application ( the 4th one at this point ) and yes my ex-husband 's name would be removed as part of the agreement. But, now they wanted a Quit Claim. My ex-husband finally agreed to sign it and it was submitted with my 4th application.

I was hopeful, as PNC only now requested my financials, not my ex-husbands as previously. The HAMP Refinancing agreement that was notarized had only my name listed as the sole responsible person for the new loan. 
I have proudly made all payments on times since XX/XX/XXXX, yet PNC Mortgage refuses to still remove my ex-husband 's name from the loan! 
He never supplied any financials for this loan and did not sign responsibility. We were assured over and over again by representatives when I or my attorney called " It will take 3 months for the trial period and then his name will come off '', Then I was told, " It will take 6 months until the paperwork is all executed and his name will come off ''. When this did not happen, I called and was told " his name will never come off ''. After all the phone correspondence, the advocation from HUD, and not even basing the HAMP on his financials or his signature to assume responsibility for a loan he never applied for? Further more are the Federal regulations under the HAMP program that PNC has and remains to blatantly break and disregard. To make matters worse, they have informed my attorney I will need to pay at least {$2000.00} for settlement fees and transfer tax. I already paid the {$1.00} transfer tax for husband to wife and what settlement fees - the settlement fees on the present HAMP loan that I am paying now were calculated into my agreement that I signed in XX/XX/XXXX! 

Per the National Consumer Law Center ; Making Housing Affordable Program ( HAMP ) the following referenced points are significantly concerning given the actions of PNC Bank since three attempts to my home via Short Sale to prevent foreclosue, but furthermore the subsequent four attempts to secure HAMP financing solely in my name. Gravely concerning to me is that PNC is requesting additional settlement and closing costs on a refinanced mortgage that I signed in XX/XX/XXXX again. PNC is requesting approximately {$2000.00} from me again just to have my ex-husband removed from a refinanced mortgage note that he never signed or had him listed as a borrower on the final mortgage application. See Attachment The correspondence and actions by PNC seems to be discriminate practices, did not follow federal regulations by evidenced by the references below during four applications to refinance XXXX XXXX, XXXX PA XXXX in my name per the Family Court Divorce Agreement. See Attachment Throughout four applications, PNC continually refused to acknowledge my ex husband had no interest in the property, no financial obligation and has not occupied the house in over 6 years yet will not remove his name appears to contradict the regulations set forth by the referenced guidelines below by the XXXX. 

Since XXXX, I have been informed by PNC Mortgage that my ex husband would have to provide financial information, sign refinancing for HAMP and Short Sale applications. Three applications for HAMP and Short Sale applications had my ex-husbands name ( XXXX XXXX, XXXX ) and required his financial information were all supplied to PNC after a divorce decree, and XXXX Family Court order was provided. 

I voiced my confusion at the time between XX/XX/XXXX through the present. My attorney, XXXX XXXX and I can not seem to get a straight answer why even with a Quit Claim in ( XX/XX/XXXX ), a Divorce Decree ( XX/XX/XXXX ) and XXXX Family Court Order ( XX/XX/XXXX ) that PNC still is insisting on my ex-husbands financial information to be provided. Bear in mind, my ex-husband has not occupied or had any financial responsibility or interest in XXXX XXXX XXXX. 

I filed a claim with the Consumer Financial Protection Bureau in XX/XX/XXXX regarding PNCs refusal to allow a Short Sale proceed as well when we had a approved buyer, escrow for this house that was underwater in equity. Our house was purchased in XXXX and lost equity by XXXX. See Attachment Case number XXXX. 

I also placed a complaint via HUD and HOPE. I spoke with an advocate named XXXX XXXX after three failed applications. At that time, I was willing to refinance via HAMP, but per the order my ex-husbands name would need to be removed. 

I was the sent an acceptance letter stating I was approved, without my ex-husbands financial fo or signature on my financial information only. 

I was informed by XXXX XXXX ( HUD ) after she spoke to her contact from PNC on XX/XX/XXXX that my when this fourth and most recent hardship application would be accepted by PNC for a short sale or a HAMP and my ex-husbands name would be removed from the mortgage with the Quit Claim being in effect, the Divorce Decree and Family Court Order. 
She seemed to be the only person to break through the walls of PNC and they returned with an offer for the fourth application. I was told it could go to Short Sale or apply for a HAMP and his name would be removed. Never during the first three applications, was I ever counseled that a Quit Claim would be needed to go forward with the HAMP. He never signed the mortgage contract, and finally this application only required my financial information only. The final papers to be signed listed only my name, and only required my signature. 
Yet, the first bill came and XXXX XXXX, XXXX name was still on the bill. I called and now are refusing to remove his name despite my phone correspondence during I spoke to XXXX PNC representative on XX/XX/XXXX. I was informed that his name will be removed in 6 months after the paperwork was processed. 

After I have solely signed and accepted the HAMP refining agreement, received notice from the City of XXXX that the house was transferred in my name for {$1.00} from husband to wife, and I have made all payments since this time on my own accord. Yet, my ex-husbands name still remains on a mortgage and on terms he never signed. Now, PNC has informed me that I will need to pay an additional approximately {$2000.00} closing costs again. 

******************************* Per the regulations below, PNC should have never have treated my application with such prejudice or ask a divorced borrower for the financial information from a non-borrower under the HAMP regulations. Even when my ex-husbands financial information should never had been entered in the earlier applications, nor should his name be held from removal of the mortgage note in the past year to present. Again, this is evidenced by the references below.

( XXXX XXXX XXXX ; Chapter IV : HAFA MHA Handbook v3.3 128 ) 10 HAFA Documents : Servicers are required to use the HAFA documents provided on XXXX or forms that are substantially similar in content to the forms provided, except that the servicer may amend the terms of the SSA or DIL Agreement in accordance with investor requirements, applicable laws or local real estate practice and may customize the forms with servicer specific logos. 

Unless a borrower or co-borrower is deceased or a borrower and a co-borrower are divorced, all parties who signed the original loan documents or their duly authorized representatives must execute the HAFA documents. If a borrower and a co-borrower are divorced and the property has been transferred to one spouse in the divorce decree, the spouse who no longer has an interest in the property is not required to execute the HAFA documents. '' 2. Despite the Quit Claim, Order of the XXXX Family Court Divorce and Divorce Decree, PNC refused to acknowledge my ex-husband had relinquished rights to the residence. This is concerning given the following reference from Supplemental DocumentationFrequently Asked Questions Home Affordable Modification Program. XXXX XXXX   //XXXX XXXX XXXX 

XXXX. If borrowers who are unrelated by marriage, civil union or similar domestic partnership under applicable law purchased their home together and one borrower has vacated the property, is the occupying co-borrower eligible to apply for HAMP?

Yes, the occupying co-borrower may pursue HAMP if a quitclaim deed evidencing that the non- occupying co-borrower has relinquished all rights to the property has been recorded. Servicers must refer to investor guidance to determine which parties are required to sign the HAMP documents.

3. Despite credit reports and documentation proving that my ex-husband was not residing in the home, PNC repeatedly wanted his financial information which seems to counter the following reference : Supplemental DocumentationFrequently Asked Questions Home Affordable Modification Program. XXXX XXXX  XXXX XXXX. Can a servicer consider a mortgage loan for HAMP that, while originally secured by non-owner occupied property, has become the borrowers principal residence?

Yes as long as such occupancy can be verified in accordance with Supplemental Directive 09-07 and Supplemental Directive 10-01. HAMP Eligibility under Supplemental Directive 09-07 states that a mortgage loan may be eligible for HAMP if it currently is secured by a one-to-four property, one unit of which is the borrowers principal residence. Supplemental Directive 10-01 states that Servicers should use the credit report to confirm that the property securing the mortgage loan is the borrowers principal residence. 

The following documentation was supplied during four applications to PNC Mortgage : 1 ) XXXX Family Court Order that the mortgage should be refinanced solely in my name, or be sold as a Short Sale.

2 ) the official divorce decree and the award of the primary residence to me and the children from time of separation in XXXX 3 ) Proof that only I and my XXXX children resided in the house. 
4 ) Proof that my ex -husband has not resided in the residence since XXXX and remarried at the time of application for refinancing in the residence or had any interest in the property, nor provided any financial assistance for the mortgage. 


Why was there direct refusal and orders for my ex-husband to supply his wage earn gins, assets and debts for analysis of a refinancing if the following reference states : Q1706. Can income of a household member not on the original note be used in the income calculations to qualify for the modification? If so, would it require that the person be added to the Note for the modification? 
A borrower has the option of disclosing a household members income ( where the household member is not included on the Note ). Servicers should include non-borrower household income in monthly gross income if it is voluntarily provided by the borrower and if there is documentary evidence that the income has been, and reasonably can continue to be, relied upon to support the mortgage payment. All non-borrower household income included in monthly gross income must be documented and verified by the servicer using the same standards for verifying a borrowers income. The borrower may elect to add a new borrower to the note, but it is not a requirement in order to include the household members income in the Home Affordable Modification evaluation.

Q1707. If income from other non-borrower household members is considered under HAMP, should a servicer also consider expenses for the other household members? 
A servicer should not consider expenses of non-borrower household members but may consider the percentage of his or her income that the non-borrower routinely contributes to the household.

Q1710. Can non-borrower, non-household income be used to qualify for HAMP?

No. Non-borrower, non-household income can not be used to qualify for HAMP. A non-borrower must occupy the property in order for the non-borrowers income to be used to qualify for HAMP. 

Specifically summary of reference titled What to do for Widows, Orphans and Divorcees ; XXXX XXXX   XXXX XXXX addresses gravely concerning behavior and business practices : 1 ) Remind the servicer that the signatures of dead or divorced borrowers are not required on any of the modification documents.

HB Ch. II, Section 5.7 ( p. 35 ) 2 ) Provide the servicer with information documenting your clients right to assume the mortgage.

Give the servicer a copy of Garn-St Garmain Act, 12 U.S.C. 1701j-3 ( d ), which requires lenders to allow surviving spouses,, children, and divorcees to assume outstanding mortgages.

The only limitation on assumability established by the regulations is the maintenance of mortgage insurance, if otherwise required, so underwriting should not be required. 12 C.F.R. 591.5.

Give the servicer a copy of the divorce decree or death certificate.

Give the servicer a copy of any further documentation showing transfer into your clients name ( see # 3 & 4, below ).

3 ) Clear title into the remaining homeowners name in the divorce proceedings, if your client is getting divorced.

Ask for a judicial quit claim deed, if the departing borrower has not executed a quit claim deed to the remaining spouse.

Consider asking for an order that the remaining spouse assumes the mortgage or that the mortgage is assigned to the remaining spouse. 

4 ) Clear title into the surviving homeowners name after a death.

For heirs, if appropriate, prepare and file an affidavit of heirship, demonstrating that title passed to the surviving homeowner.

Consider opening probate and having the surviving homeowner named as the administrator of the estate.

Consider obtaining a court order naming the surviving heir as the personal representative of the estate for purposes of the mortgage.

5 ) If the servicer wont review, escalate! 
Ask for the servicers in-house escalation team. 
E-mail XXXX. 
Ask for XXXX XXXX if escalation isnt satisfactory. 

XXXX XXXX XXXX XXXX, XX/XX/XXXX XXXX XXXX : XXXX XXXX XXXX, XXXX, MA XXXX XXXX '' Compliance ( during time of application ) : Treasury has selected XXXX XXXX to serve as its compliance agent for the HAMP. In its role as compliance agent, XXXX XXXX will utilize XXXX XXXX employees and contractors to conduct independent compliance assessments of the HPDP in conjunction with the HAMP as outlined in Supplemental Directive 09-01.