Consumer complaint received 2022-01-11 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: PNC Bank N.A.
State: HI

Complaint narrative:
My wife and I work from home in a single family home in XXXX XXXX, XXXX. On XX/XX/XXXX I placed a 5 % deposit on a new condo purchase from a developer in XXXX before traveling there to reserve it. I contacted several lenders and initially locked a rate 2.875 % ( XXXX  pts ) on a second home purchase with a XXXX XXXX After discussing with my wife having learned more about the property we decided we wanted this as our primary residence since the internet and amenities would make it a better work environment. I called PNC bank on XX/XX/XXXX and spoke to XXXX XXXX and explained that we wanted this to be our primary residence and locked a 2.75 % rate ( XXXX pts ) with them. I mentioned that this was listed as a second home on the purchase agreement but I wanted this to be my primary residence since we do not want to have to change it later with the XXXX. Note the property is assessed at a higher value than our current home. During the conversation he said they could also do it as a secondary home and if we want and he could wave the XXXX pt fee. 

During the process I received a loan estimate from XXXX ' assistant XXXX that had added XXXX points to what was agreed upon. I forwarded him the initial email where XXXX had stated the terms was with no points and he subsequently had it corrected with manager approval. Everything was going fine and as it was looking like we were going to close I withdrew the application from the other lender ( XXXX ). 

Then on XX/XX/XXXX I received an email from XXXX that stated " The Underwriter is making us go with this as a second home. It is marked as a second home purchase in the contract. Because it will have to be a second home, that affects our pricing by XXXX of a point. '' I asked can we just do an addendum to purchase contact and he said we can try that. 

So after the addendum was completed and returned I received an email from XXXX on XX/XX/XXXX that stated " The Underwriting manager refuses to allow us to call this a primary home. She is forcing us to do it as a second home. I think that original purchase agreement is what did us in. So, since we have to go the second home route, our rates change. Below is what we are looking at. I would suggest locking at the 3.0 %, but I will wait for your confirmation. '' In this email is a chart that also indicated that the new loan terms were for XXXX pts. 

It is clear to me this is a bait and switch scheme and PNC bank and there is no reason why PNC can not honor the already agreed locked rate. The 10 year treasury has recently shot up in the past weekly and mortgage lending rates have followed suit. 

I spoke with XXXX XXXX on the phone on the phone regarding this and he was apologetic and relayed to me that XXXX was " supposed '' to let me know on XX/XX/XXXX that the underwriter was requiring a new application and the rate lock could not be applied and that did not happen. I agreed to float a rate with them to see if it comes down but I will likely have to back out of the purchase since I will have to have loan approval by XX/XX/XXXX or I will lose my 5 % deposit ( {$62000.00} ).

Company response to consumer: Closed with explanation