Mortgage Company Problems

Off Topic
21

[quote]trailrash wrote:
JD430 wrote:
Maybe this is a strange request, but since there is such a large, diverse group of people on this site, maybe someone can help me.

In a nutshell, my mortgage company is a nightmare to deal with. I have been going back and forth with these assholes for a year about PMI deletion. I cant describe what it is like dealing with them. They dont respond to letters, emails or faxes.

When you call, you get a customer service rep who is clueless and abrasive. I’ve also been told about 5 different things. They refuse to put a supervisor on the phone or even provide a name of a supervisor so I could write them a letter.

After threatening legal action a month ago, I got a mysterious letter which seemed to be the answer I was looking for. However, they either forgot or refused to include a needed document and Im fighting to get that now.

The legal action threat was somewhat hollow because we’re only talking about PMI deletion, which in the scheme of things isnt really that huge an issue although
its costing me $1700 a year for nothing at this point.

Maybe some one in the real estate or legal business can provide me some guidance on how to get a freakin answer from these clowns. Also, Im a little unsure about where to lodge a formal complaint and would be interested in doing that too. Any advice or experiences would be greatly appreciated.

Honestly, all I want is a straight answer. The whole PMI thing is ancilllary. I’m not bitching about the amount of interest they will make off of me before its all said and done, but I
think that it at least entitles me to some type of reasonable customer service.

I work for a large bank so maybe I can help you. Most importantly How long have you been in the home and did you get a good deal on the home? In other words did you buy it with equity in it already? Its hard to give you an assessment on the situation unless we have this info.

TR
[/quote]

I will have been in the home 3 years this march. Did I get a good deal on the home? I probably paid right about what it was worth at the time, if that helps.

Looks like I just got a phone number for the Insurance division today in my email. Dont know how this happened, but Ill be pursing that. Hopefully, that will do the trick.

Thanks to everybody for their time and help.

22

[quote]JD430 wrote:

I will have been in the home 3 years this march. Did I get a good deal on the home? I probably paid right about what it was worth at the time, if that helps.

Looks like I just got a phone number for the Insurance division today in my email. Dont know how this happened, but Ill be pursing that. Hopefully, that will do the trick.

Thanks to everybody for their time and help.[/quote]

Then it is a shame that they have given you the run around like this being you have been in the home for 3 years and I am assuming you have paid your payment on time every month.

Typically many lenders will allow you to get an appraisal (at your expense) after 2 years and a good pay history. Many also require your Loan to Value ratio to be at 75% to drop the PMI (some may only require 78% or 80% so it depends on the bank’s requirements).

On another note. For the person who doesnt believe the Lender doesn’t have a vested interest in the PMI you are mistaken. No they dont collect the premium every month so it isnt necessarily going in their pocket but the longer the PMI is on the loan the less risk they carry at your expense.

TR

23

[quote]trailrash wrote:
Typically many lenders will allow you to get an appraisal (at your expense) after 2 years and a good pay history. Many also require your Loan to Value ratio to be at 75% to drop the PMI (some may only require 78% or 80% so it depends on the bank’s requirements).
[/quote]

I don’t think the bank is allowed to set the requirements for cancellation, it’s set by federal law. Check out this HUD link:

http://www.hud.gov/offices/hsg/sfh/res/respapmi.cfm

24

[quote]Loose Tool wrote:
trailrash wrote:
Typically many lenders will allow you to get an appraisal (at your expense) after 2 years and a good pay history. Many also require your Loan to Value ratio to be at 75% to drop the PMI (some may only require 78% or 80% so it depends on the bank’s requirements).

I don’t think the bank is allowed to set the requirements for cancellation, it’s set by federal law. Check out this HUD link:

http://www.hud.gov/offices/hsg/sfh/res/respapmi.cfm

[/quote]

The last sentence is the important part.

"By Request. Homeowners can request cancellation of the PMI when their equity position reaches 20 percent of the original value of the property, if they meet certain criteria. CONTACT YOUR MORTGAGE LENDER FOR ITS CRITERIA LIST. "

When I purchased my home I was in a Fannie Mae product and it was sold to Countrywide. Their requirement to drop PMI after I had an appraisal done was a 75% LTV.

TR

25

[quote]trailrash wrote:
The last sentence is the important
TR

[/quote]

Actually, federal law supercedes any provision of the agreement with your lender. See Section 9(b) of the Act. Your lender cannot cannot be more restrictive than the Act allows. That’s the whole point of the law: to keep the lender from fucking the homeowner.

26

[quote]Loose Tool wrote:
trailrash wrote:
The last sentence is the important
TR

Actually, federal law supercedes any provision of the agreement with your lender. See Section 9(b) of the Act. Your lender cannot cannot be more restrictive than the Act allows. That’s the whole point of the law: to keep the lender from fucking the homeowner.

[/quote]

Actually im not seeing it and Im also not arguing about it. If you are right then I guess Countrywide (the Largest Private Lender in America) is going to have one hell of a lawsuit on their hands.

TR

27

I’m an account executive at a mortgage lender. Shoot me a PM and we’ll talk.

28

[quote]aburke22 wrote:
I’m an account executive at a mortgage lender. Shoot me a PM and we’ll talk. [/quote]

Conforming or non-conforming?