Consumer complaint received 2024-12-13 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Interest rate
Company: PNC Bank N.A.
State: MD

Complaint narrative:
Subject : Formal Demand for Compliance with Loan Terms and Immediate Reduction of Monthly Payments To Whom It May Concern, This letter serves as a formal demand regarding the improper handling of my mortgage loan for [ property address ], account number XXXX. Your mishandling of my fixed-rate loan during all of the loan modifications process has violated my rights and exposed your company to potential legal liability for discriminatory practices and breaches of federal lending laws. 

Violation of Loan Terms and Unaffordable Modifications I entered into a fixed-rate mortgage agreement XX/XX/year> with the understanding that my interest rate would remain consistent throughout the life of the loan. However, during the loan modification process, PNC Mortgage substantially increased my interest rate in a manner that mimics an adjustable-rate mortgage ( ARM ). These rate increases contradict the terms of my fixed-rate loan and caused my monthly payment to rise from {$1300.00} to $ XXXX amount equivalent to my biweekly income. 
Despite providing documentation of my income to demonstrate affordability during the loan modification process, the drastic increase rendered the loan unaffordable. The purpose of a loan modification is to provide relief to borrowers, not to impose terms that exacerbate financial hardship. These actions amount to a breach of contract and likely violations of the Real Estate Settlement Procedures Act ( RESPA ) and Truth in Lending Act ( TILA ) due to a failure to disclose and justify the rate changes. 

Unsolicited Calls and Messages Further compounding these issues, I have been inundated with unsolicited calls and text messages from third parties offering to purchase my home. These communications suggest that PNC Mortgage has unlawfully shared or sold my personal information without my consent, a violation of the Gramm-Leach-Bliley Act and my right to privacy. This behavior is intrusive, predatory, and unethical. 

Potential Discrimination The unjustifiable increase in my interest rate and the refusal to provide an affordable loan modification suggest the possibility of discriminatory practices. If PNC Mortgage is applying these terms inconsistently or unfairly, it could constitute a violation of the Fair Housing Act. I expect a full explanation as to why I was subjected to such terms. 

Legal Violations and Consequences These actions expose PNC Mortgage to liability under : XXXX. RESPA : Improper handling of loan modifications and payment mismanagement. 
XXXX. TILA : Failure to properly disclose or justify interest rate increases. 
XXXX. Gramm-Leach-Bliley Act : Unauthorized sharing of my personal information. 
XXXX. Fair Housing Act : Potential discriminatory practices. 

If my concerns are not addressed immediately, in addition to filing a formal complaint with the Consumer Financial Protection Bureau ( CFPB ), I will also file with the U.S. Department of Housing and Urban Development ( HUD ), and other relevant federal and state agencies. Additionally, I will seek legal action to recover damages and enforce my rights. 

Formal Demands To resolve this matter, I demand the following actions : XXXX. Restore my fixed interest rate to its original terms or properly modify it to create an affordable monthly payment of {$1300.00}. 
XXXX. Provide a complete, transparent explanation of all interest rate adjustments, payment history, and allocation of funds. 
XXXX. Cease all unauthorized sharing of my personal information and provide written assurances that no further disclosures will occur. 
XXXX Credit my account for any overpayments or improper charges. 
XXXX. Investigate and address the issue of unsolicited calls and text messages regarding the sale of my home. 

Please be advised that I do not wish to be contacted by your Public Relations representatives who is not helpful. In the past, they have reached out, but their role seems to be limited to asking me to reiterate my complaints without addressing the underlying issues. They do not resolve problems, and they are not acting in the best interest of consumers. Therefore, I expect direct communication from a representative who can take action, not from a Public Relations representative. 

This letter serves as a formal dispute under RESPA. I expect a comprehensive written response within 30 days. Failure to resolve these matters will result in immediate escalation, including legal proceedings. 

Sincerely, XXXX XXXX Acct # XXXX XXXX XXXX XXXX XXXX XXXX, MD XXXX Mortgage - Problems with loan modification, collection, or payments Description of the Problem : I am submitting this complaint regarding PNC Mortgages improper handling of my fixed-rate loan for XXXX XXXX XXXX XXXX XXXX MD XXXX XXXX account number XXXX. 

XXXX. Improper Increases to Fixed Interest Rate : My loan was established as a fixed-rate mortgage to guarantee consistent interest rates. However, during the loan modification process, PNC Mortgage increased my fixed interest rate multiple times, mimicking the behavior of an adjustable-rate mortgage ( ARM ). These increases caused my monthly payments to rise from {$1300.00} to $ XXXX amount equivalent to my biweekly incomemaking the loan unaffordable. 
Despite providing documentation of my income during the modification process, the drastic increase in payments rendered the loan unaffordable. This action undermines the purpose of a loan modification, violates the terms of my fixed-rate agreement, and may constitute breaches of the Real Estate Settlement Procedures Act ( RESPA ) and the Truth in Lending Act ( TILA ). 

XXXX. Unauthorized Disclosure of Personal Information : I have received unsolicited calls and messages from third parties offering to purchase my home. This suggests PNC Mortgage unlawfully shared or sold my personal information without my consent, violating the Gramm-Leach-Bliley Act. 

XXXX. Potential Discrimination : The substantial and unjustifiable increase in my interest rate raises concerns of potential discriminatory practices, in violation of the Fair Housing Act. PNC Mortgage must demonstrate that my treatment is consistent with that of other borrowers. 

Desired Resolution : XXXX. Restore my fixed interest rate to its original terms or properly modify it to create an affordable payment of {$1300.00}. 

XXXX. Provide a clear and transparent explanation of all interest rate adjustments and payment history. 

XXXX. Cease all unauthorized sharing of my personal information and provide written assurances against future disclosures. 

XXXX Credit my account for any improper charges or overpayments. 

XXXX. Investigate and address the unsolicited calls and text messages I have received. 

Please note that I do not wish to be contacted by any Public Relations representatives who is not helpful. In the past, these representatives have reached out only to request that I repeat my complaints, without providing any substantive resolution to the issues. It is clear that they are not equipped to handle these matters, and I expect communication from an individual who can take appropriate action. 
Impact on Me : The improper handling of my loan has caused financial hardship, significant stress, and invasive, predatory communications. These practices violate federal laws designed to protect borrowers and homeowners. 

Supporting Documents : I am prepared to provide : Loan statements showing payment increases. 
Documentation of income submitted during the modification process. 
Records of unsolicited communications from third parties. 
Contact Information : Name : XXXX XXXX Phone : XXXX Email : XXXX XXXX

Company response to consumer: Closed with explanation