PNC Bank Mortgage Complaint

PNC Bank Mortgage department,

Home equity loan or line of credit Application, originator, mortgage broker North Carolina

To Whom It May Concern, I recently applied for a home equity loan with PNC Bank for the amount of $25000.00. My initial loan estimate indicated that the estimated payment would be $510.00. The assessed value of the property per PNC 's assessor was $530000.00 ( though I note that the assessor did not account for - square feet of livable space ). My current mortgage balance is $380000.00. On - -, the underwriter issued the following request via email : '' Homeowners insurance dwelling coverage is insufficient. Will need dwelling coverage increased to cover total liens $400000.00. " This request is the reason I am filing the complaint. Homeowner 's insurance covers the value of the dwelling ( which per my homeowner 's insurance policy is ~ $250000.00 ), not the value of the outstanding loan. The figure the underwriter wants to cover through my homeowner 's insurance is the outstanding balance on my mortgage ( $380000.00 ) plus the value of the loan for which I applied


Even with the low assessment value on the property, the sum of my mortgage and the loan for which I applied would result in a loan-to-value ratio of - %. Banks are required to drop PMI once the loan-to-value ratio reaches - %. There are - specific concerns here that I would like to bring to the attention in light of the above summary. 1 ) The underwriter is asking for one type of insurance ( PMI ) that according to the rules is not allowed. As such, s/he would seem to be asking me to provide that insurance through my homeowner 's insurance. This is either an instance of gross incompetence ( i.e. confusing homeowner 's insurance with PMI ) or an attempt to skirt an existing regulation regarding PMI and, therefore, asking me to shoulder a cost that is not required vis. my loan-to-value ratio. 2 ) The second concern is that the requested additional coverage would result in a significantly higher cost than was provided in my loan estimate. This expectation was not disclosed in my loan estimate and, as such, this request constitutes a violation of the Truth in Lending Act that obligates PNC to inform me of all expected costs. I have written documentation of all facts mentioned above that I am happy to forward to you. Should you require them, please do not hesitate to contact me.