Consumer complaint received 2017-02-28
Company: Freedom Mortgage Company
State: IA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Please read in its entirety. 
Complaint Submitted on XXXX/XXXX/XXXX Case number : XXXX I have contacted Freedom Mortgage XXXX on 4 separate occasions to remove my PMI insurance since we own more than 20 % of our home. I have submitted a written request to Freedom Mortgage to remove it. They then requested an appraisal, which I also submitted. However, since I did not use one of their vendors for the appraisal they denied my request. They are now contacting me to try and barrow me more money because they have an " updated '' value of our home. All I want is my PMI removed. The customer service has been terrible. 

Freedom Mortgage 's response on XXXX/XXXX/XXXX : We are in receipt of your complaint and are happy to respond to your concerns. I have reviewed your complaint and researched the issue regarding your request from PMI removal. 

You requested PMI removal and submitted your own appraisal and asked if that appraisal was would be acceptable. We responded with letters to you on XXXX and XXXX specifically stating that an appraisal was required from our vendor. I have attached the letters for your review. Once again, we can not accept the appraisal you have submitted. The appraisal must be from an independent. This is an investor guideline which we can not change. 

I have also attached a PMI disclosure that you signed at closing. PMI is scheduled to automatically terminate after you have made the XXXX/XXXX/XXXX payment assuming your payments are current. Given the estimated cost of a new appraisal at {$450.00} compared to the 4 remaining PMI payments at {$26.00} per month, it appears that it would be more cost effective to wait for automatic termination after the XXXX/XXXX/XXXX payment has been made. However please feel free to contact our appraisal vendor for a price quote so that you may make an informed decision. 

If you have any further questions or concerns, please do not hesitate to contact me. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX Customer Service Freedom Mortgage XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, NJ XXXX XXXX response on XXXX/XXXX/XXXX : We did receive the letters that were attached in this case, however, they did NOT state that we were REQUIRED to use an independent vendor ( please read the letter ). Also, we never received any document that our appraisal was not acceptable. I know Freedom Mortgage has access to our latest home value because they have contacted me to barrow me more money. How come the " updated '' value of our home from our " non-independent appraiser '' is " good enough '' to contact me to try and lend me more money but not " good enough '' to remove the PMI. All that was stated in the PMI contract that we signed on XXXX/XXXX/XXXX was in order to cancel the PMI an updated appraisal would be needed. I have attached all the documents related to this dispute.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation