PNC Bank N.A. Mortgage Complaint

PNC Bank N.A. Mortgage department,

Conventional fixed mortgage Credit decision / Underwriting Pennsylvania

On or about - -, 2016, we applied for a mortgage with PNC Mortgage for the purchase of a condominium in -, PA. Previously, we had been pre-approved by PNC. PNC knew from the very beginning of the application process that we were purchasing a condominium. We obtained a locked in, fixed rate of 3.75 %. We received numerous documents during the process reflecting that same locked in, fixed rate. The agreement called for a closing date of - -, 2016, time being of the essence. On or about - -, 2016 - one week before closing - we were informed by telephone that our interest rate had increased from 3.75 % to 3.875 %. The person who phoned - - - - was not aware of the reason for the increase. When we inquired of the loan officer, - -, we were advised that the underwriters ( who are employees of PNC ) determined that our condominium was " unwarrantable '' because of a slip and fall claim against the Condo Association, this despite the fact that PNC was aware and had confirmed that the Condo Association had coverage of - for the claim. We were never advised, orally


underwriters. He alluded to the fact that this happened often with condominums. Yet, he never felt the need to warn us ahead of time that this was a possibility. It was represented to us by his manager that he is a very experienced loan officer. Therefore, we believe he should have known and should have warned us at the start of the process. The explanation and justification of the condo being " unwarrantable '' is dubious at best, and deceptive at worst. We believe it was a convenient way for PNC to increase our interest rate and monthly payment. Although the payment increased by only $26.00 per month, over the course of the 15 year loan, that would add up to $4700.00. Because of the delay caused by our need to process this information, we had to ask the Sellers for a delay in the closing. Fortunately, we were able to close on - -, 2016. We believe we are entitled to a reduction in the interest rate to 3.75 % and a refund of $26.00 per month until this matter is resolved.