Consumer complaint received 2025-06-25 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: FIRST NATIONAL BANK OF PENNSYLVANIA
State: MD

Complaint narrative:
CFPB CONSUMER COMPLAINT Company : First National Bank of Pennsylvania Product : Mortgage - Construction-to-Permanent Refinance Account : # XXXX Date : XX/XX/XXXX Violations : FCRA 623, Regulation B ( ECOA ), Regulation Z ( TILA ), FDCPA 806 ( 6 ), 807-809, UDAAP CONSUMER STATEMENT " This delinquency resulted solely from FNBPA 's {$140000.00} calculation error and balloon extension mishandling during active refinance processing, not payment default. I maintained all payments and have 20 years of perfect credit history ( XXXX ). '' COMPLAINT SUMMARY First National Bank of Pennsylvania ( FNBPA ) caused significant financial and credit harm through multiple institutional failures during my construction-to-permanent refinance process : * * * Failed to process balloon extension despite formal requests beginning in XX/XX/XXXXXXXX XXXX XXXX XXXX A loan officer 's calculation error of {$140000.00} caused a false refinance denial ( XX/XX/XXXX ) * * * Charged {$7800.00} in unlawful fees during their processing delays * * * Violated FDCPA with unidentified collectors despite active refinance confirmation * * * False credit reporting resulting in a XXXX point XXXX XXXX drop Result : Denied construction financing, XXXX day project delays, and damaged creditworthiness despite a XXXX perfect payment history. 

CHRONOLOGY OF EVENTS * * * XX/XX/XXXX : I submitted a construction-to-permanent refinance application for $ XXXX days before my balloon loan maturity datedemonstrating proactive financial planning. The original application contained the correct loan amount. 

* * * XX/XX/XXXX : I formally requested a balloon extension through written communication to multiple FNBPA departments, including Loss Mitigation, Loan Default, Mortgage Assistance, and Servicing. Email records document these extension requests. 

* * * XX/XX/XXXX : My initial loan officer became unresponsive after 12+ unreturned calls over 30 days, requiring reassignment to a new loan officer. Call logs document this extended period of non-communication. 

* * * XX/XX/XXXX : My balloon loan reached maturity with no extension decision communicated by FNBPA despite repeated follow-ups and their acknowledgment of my requests. 

* * * XX/XX/XXXX : The new loan officer erroneously input {>= $1,000,000} instead of the correct {>= $1,000,000} loan amount, causing a false " insufficient reserves '' denial. Email documentation shows the bank 's acknowledgment of this {$140000.00} calculation error. 

* * * XX/XX/XXXX : I resubmitted the application with the corrected {>= $1,000,000} amount. The bank 's redisclosure documentation confirms the accurate loan amount. 

* * * XX/XX/XXXX : FNBPA 's Collections department contacted the loan officer, who confirmed that my refinance application was active and progressing. Internal call documentation supports this verification. 

* * * XX/XX/XXXX : Collections re-verified the active refinance status with the loan officer. Call transcripts confirm there was no legitimate delinquency. 

* * * XX/XX/XXXX through XX/XX/XXXX : Despite the verified active refinance, FNBPA assessed {$7800.00} in fees during their processing delays, including {$7400.00} in late charges and {$310.00} in interest. 

* * * XX/XX/XXXX through XX/XX/XXXX : Unidentified collectors ( using only first names : XXXX, XXXX, XXXX, etc. ) repeatedly called while refusing to provide employee IDs or last names, violating FDCPA disclosure requirements. Call logs document these violations.

DOCUMENTED HARM Credit Damage : * * * Credit score drop : XXXX XXXX ( all three bureaus ) * * * False delinquency reporting continues despite verification * * * Impacted construction financing approval with other lenders Financial Harm : * * * {$7400.00} in wrongful late fees during processing delays * * * {$310.00} in excessive interest charges * * * $ XXXX in construction delays and increased material costs * * * Lost favorable lending rates due to credit damage Professional Standing : * * * Perfect 20-year payment history ( XXXX ) with FNBPA * * * Consistent {$1000.00} monthly payments since XX/XX/XXXX * * * Proactive refinance initiation 75 days before maturity SPECIFIC REGULATORY VIOLATIONS 1. FCRA 623 ( a ) ( 1 ) ( B ) - Inaccurate Credit Reporting * * * Bank reported delinquency despite internal confirmation of active refinance * * * Failed to correct known inaccuracies after verification 2. Regulation B ( ECOA ) - Discriminatory Practices * * * Loan officer calculation errors led to a false " insufficient reserves '' denial * * * * Inconsistent handling of balloon extension requests 3. Regulation Z ( TILA ) - Fee Assessment Violations * * * Charged late fees during the bank 's processing delays * * * Inadequate transparency around balloon payment handling 4. FDCPA 806 ( 6 ), 807-809 - Debt Collection Violations * * * * Collectors ( XXXX, XXXX, XXXX ) refused XXXX provide full identification * * * Continued aggressive collection despite verified active refinance * * * Failed " meaningful disclosure of caller identity '' requirement XXXX. UDAAP - Unfair, Deceptive, Abusive Practices * * * Charged fees during institutional processing failures * * * Damaged credit reporting without a legitimate basis BANK COORDINATION FAILURES Despite communications across multiple departments, FNBPA failed to coordinate internally : * * * Loss Mitigation - Acknowledged extension request in XX/XX/XXXX, never provided a decision * * * Loan Default - Promised review of extension request, failed to communicate the outcome * * * Mortgage Assistance - Received extension requests, no coordinated response with other departments * * * Collections - Verified active refinance twice ( XX/XX/XXXX & XX/XX/XXXX ) but continued aggressive collection efforts * * * Loan Servicing - Continued charging fees during the bank 's processing delays The assigned loan officers progressed from unresponsive to helpful. However, institutional systems prevented resolution despite individual efforts to advance the loan process. 

SUPPORTING DOCUMENTATION The following documentation supports this complaint : * * * Construction-to-permanent refinance application with correct {>= $1,000,000} amount ( XX/XX/XXXX ) * * * Written balloon extension requests sent to multiple departments ( XX/XX/XXXX ) * * * Call logs documenting an unresponsive loan XXXX requiring reassignment ( XX/XX/XXXX ) * * * Email acknowledgment of {$140000.00} the loan calculation error ( XX/XX/XXXX ) * * * Bank 's corrected redisclosure XXXX {>= $1,000,000} loan amount ( XX/XX/XXXX ) * * * XXXX bank documentation of collections verifying active refinance ( XX/XX/XXXX & XX/XX/XXXX ) * * * Detailed fee assessment breakdown totaling {$7800.00} in wrongful charges Credit reports demonstrating a XXXX perfect payment history through XX/XX/XXXX * * * Construction project delay cost documentation exceeding {$18000.00} FAIR RESOLUTION XXXX Credit Reporting Corrections * * * Immediate XXXX XXXX XXXX inaccurate delinquency entries from XXXX XXXX XXXX XXXX 
* * * Written letter of explanation from FNBPA acknowledging that the delinquency was reported in error due to internal miscalculation.

* * * Correction of internal records to ensure no future lending decisions are based on false derogatory data. 
* * * Expedited processing of the current construction-to-permanent refinance application without additional underwriting delays. 

XXXX. Financial Restitution * * * Full refund of {$7800.00} in improperly assessed late fees and interest that accrued during FNBPA 's internal processing delays.

* * * Optional : Waiver of any future administrative fees associated with the current loan process as a goodwill gesture.

3. Compliance and Corrective Action * * * A formal acknowledgment that the refinance denial was caused by an internal loan amount entry error, not the borrower 's fault.

* * * Internal review or audit of similar XXXX refinance denials for loan input or process errors. 

Staff retraining on : * * * Accurate loan calculation procedures ( TILA compliance ) * * * Handling of borrower extension requests ( ECOA compliance ) * * * Correct and lawful reporting ( FCRA compliance ) * * * Appropriate debt collection practices ( FDCPA compliance ) 4. Process Improvements * * * Establish a clear and trackable balloon extension process with defined response timelines.

* * * Enforce collector ID disclosure and accountability per FDCPA 806 ( 6 ). 
* * * Implement internal communication protocols across departments ( loss mitigation, loan servicing, and collections ) to avoid contradictory actions during active loan processing. 

CONCLUSION This complaint demonstrates institutional failures across multiple FNBPA departments, not borrower default. My 20-year perfect payment history, proactive refinance initiation, and continuous good-faith efforts establish consistent financial responsibility. The bank 's staff verified that no legitimate delinquency existed, yet harmful credit reporting and fee assessment continue. 

I request CFPB intervention to ensure FNBPA corrects these violations and implements systemic improvements to prevent similar harm to other consumers.

Company response to consumer: Closed with explanation