Consumer complaint received 2025-04-07 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: PNC Bank N.A.
State: TX

Complaint narrative:
Notwithstanding several communications conducted with representatives of PNC over the preceding months, these discrepancies persist. I believe that a prompt and thorough explanation will clarify the situation and expedite its resolution. 

XXXX. XX/XX/XXXX Payment Issue On XX/XX/XXXX, I sent a Request for Clarification and Negotiation of Reinstatement Fees requesting a detailed breakdown of the Corporate Advance charges and any supporting documentation for the other fees. This letter was sent to both PNC and XXXX XXXX XXXX. Neither one responded or even acknowledged my correspondence, which constitutes a RESPA violation. 
While I waited for a reply and in order to avoid the sale day of my home, I made a substantial payment of {$16000.00}, specifically to catch up in full on my past-due mortgage payments. This payment was received by PNC on XX/XX/XXXX, as confirmed by the payment confirmation email I received from PNC Alerts. After several follow-ups with PNC, XXXX was told that everything had been applied properly and that my loan had been reinstated. I was told that PNC needed some time before my online account reflected the payment and its distribution. This was never done. My online account still shows my next due payment to be XX/XX/XXXX without the make a payment functionality. 
However, when I reviewed my XX/XX/XXXX statement, I noticed something concerning : XXXX. The payment was applied as follows : Principal : {$3100.00} Interest : {$8500.00} Escrow : {$3400.00} Fees : {$1600.00} Ive not found any correspondence or mortgage statement that explains what happened to the {$1600.00} that was not applied to my mortgage, only a generic Fees category with no additional details. It should be noted that this amount is exactly equivalent to XXXX monthly mortgage payment. Additionally, the amount does not match any of the fees listed in the Restatement I was given on XX/XX/XXXX. 
This apparent payment misapplication and miscellaneous fees constitute a breach of contract as they violate the terms of the Deed of Trust as well as violating HUD regulations, CFPB rules, the Dodd-Frank Act, FDCPA, and TDCA. 
If this amount had been properly applied as a monthly payment as per the Deed of Trust, instead of fees, my account would have been current through XX/XX/XXXX, with no past due balance on the mortgage at all, making the XXXX payment due on XX/XX/XXXX, caught up in its entirety and reported to all credit bureaus as such. 
Also concerning was that within days of processing this substantial payment, new attorney fees of {$1400.00} were added to my account, despite my filing a written request for disputing the previous attorney charges, which despite email and other follow-up on my part, were never responded to as required, and in violation of RESPA, and should have been removed. 

XXXX. XXXX and XX/XX/XXXX Payment Issues On XX/XX/XXXX, I submitted a payment of {$6900.00} which as I calculated would cover all past-due principal, interest, and escrow payments ( not including the attorney fees, which, as I mentioned, had been disputed without response ). 
On XX/XX/XXXX, PNC returned this payment with a letter stating " we can not accept any payments from you except the full reinstatement amount. '' while also stating an incorrect Reinstatement Amount that is not accurate, due to the XXXX misapplication of funds, and also was not in line with Texas law concerning amounts required for reinstatement. 

The amount that I paid was actually slightly more than the Reinstatement amount that was required on this date, and with the XXXX payment properly applied, would have covered all past due amounts, escrow amounts and late fees, as well as the forthcoming XX/XX/XXXX payment, and should have been reported to credit bureaus as up to date and current. However instead of this, PNC mailed a check for that amount back to me, without reason or discussion, followers by notice of acceleration. 

Even if PNC miscalculated the amount due, returning the payment was not proper and not in line with Texas law or my Deed of Trust. It also was not aligned with PNCs own established practice as shown on my XX/XX/XXXX payment that was applied despite being less than PNCs documented ( and incorrect/improper ) Reinstatement Amount at that time. 
I resubmitted the same payment on XX/XX/XXXX, in person at a branch, hoping that this time it would be applied correctly, but according to my most recent statement, PNC has held it as " Unapplied Funds '' rather than applying it to my account and on XX/XX/XXXX shows an entry of misapplied funds, meaning that I have no idea where that money is right now - other than the right place, which is applied to my mortgage. 
If my XXXX payment had been correctly applied, and if my XXXX payment had been accepted and properly applied, my account would be current through XX/XX/XXXX, with only XX/XX/XXXX 's payment currently due. 
Instead, PNC has been improperly reporting my payment history to credit bureaus and most egregiously, has initiated foreclosure proceedings based on what appears to be an artificially created delinquency that otherwise would not exist. 

3. Assessment of All Fees, Including Attorney Fees.

Immediate action is required to rectify mortgage payment misapplications, thereby reinstating the mortgage. Subsequent focus should be directed toward addressing Real Estate Settlement Procedures Act ( RESPA ) violations and challenged incurred fees, particularly attorney fees.

4. Impact on Credit Score and Current Situation Because of PNCs payment application issues, my mortgage has been incorrectly reported as delinquent, which has significantly damaged my credit score. This has affected my ability to qualify for other financial services and increased my costs for insurance and other necessities. This matter seems to be going back some time and has significantly impacted my own ability to get things back on track as I have worked to do. More urgently, my home is now facing foreclosure despite my good-faith efforts which should have, if applied properly by PNC, have made the account current.

Company response to consumer: Closed with explanation