Consumer complaint received 2017-05-10
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
The following are many letters- over 6 months, attempting to eliminate the PMI on our rental home loan. The last letter refers to a page out of our original mortgage with  XXXX  ( at the time ) being sent from the B of A to us stating under 'Automatic Termination of MI ' that when the loan balance reaches 78 % of the original value of the property, the MI will automatically be dropped. We have received NO response from The B of A.   In our research we have also discovered many complaints about the B of A doing the same thing to others. We also currently have a call into  XXXX   XXXX   XXXX  's office.   We look forward to your assistance in resolving this ongoing problem.   Thank you.      XXXX   XXXX  (  XXXX  )  XXXX  IMPORTANT- LEGAL ACTION PENDING  XXXX  Bank of America MI Department RE : Request to Cancel PMI Loan #  XXXX  To whom it may concern ; We recently paid down our mortgage to 80 % of value. This payment will be received by B of A on   XXXX   in the amount of {$5500.00}. Based on applied principal our debt should be below {$150000.00} at that time. The recent appraisal that you had requested dated   XXXX   shows the property value at {$190000.00}. 80 % of this is {$150000.00}. Please cancel our PMI. If for any reason The B of A does not cancel the PMI we will move to refinance this loan with another lender. Thank you for your help.    XXXX   XXXX   XXXX   XXXX   XXXX   XXXX . #  XXXX   XXXX   XXXX , CA.  XXXX  Follow Up Notes :  XXXX  I have now received several documents from the B of A supposedly detailing the MI requirements on my loan to. NONE of these documents say anything about a 70 %  XXXX  requirement. Unless you can show me documents that I executed when I borrowed this money from  XXXX , I will expect that the MI be dropped, as I have met the only written requirements that I have- 80 %  XXXX  and after I spent the time and money to obtain an appraisal.   I will expect your response within  one  week or by  XXXX   XXXX ,  XXXX .   Thank you.      XXXX   XXXX  (  XXXX  )  XXXX   XXXX  We recently received another package dated  XXXX  from The Bank of America, including another copy of our appraisal and a third letter stating that The B of A refuses to cancel our PMI due to a requirement for a 70 %  XXXX  in order to do so. None of the materials sent from the B of A have included the simple document that we have asked for : We need to see any document or disclosure that we signed at the time we took out the loan stating that we need to have a 70 %  XXXX  to remove the PMI.   If we do not see some confirmation of evidence within 10 days we will take legal action against The Bank of America. This action will include a charge for reimbursement of our appraisal cost, lost work time and all PMI charges- due to The Bank of Americas  continual  failure to provide any proof or documentation to support their claim, while we are forced to keep paying the PMI.   Please provide the documentation requested on or before  XXXX   XXXX ,  XXXX  or we will take further legal action.   Sincerely,  XXXX   XXXX   XXXX   XXXX   XXXX   XXXX   XXXX   XXXX . #  XXXX   XXXX   XXXX , CA.  XXXX  (  XXXX  )  XXXX   XXXX   XXXX  NOTICE : Spoke to  XXXX   XXXX  on  XXXX  who said that The B of A was sending a copy of my original  XXXX  loan documents which should clear up this ongoing PMI issue. I found that these documents said nothing about whe n my PMI could be canceled. This was yet another disappointment from The Bank of America. SoI am going to contact HUD to complain that not only did I not receive the information requested within the required 60 days, I did not receive any confirming evidence of the PMI rules at all ( its been almost 120 days as of today ). I also plan to take legal action for past due PMI payment s for the last 6 months.   Sincerely,  XXXX   XXXX   XXXX   XXXX   XXXX   XXXX   XXXX  PS : I am currently at 78 % of the Loan value on my mortgage. The recent appraisal came to {$190000.00}. 78 % of this is {$150000.00}. I show a current debt of {$150000.00}.   Please cancel this PMI on or before  XXXX   XXXX  when my loan will be under the 78 % requirement.   Sincerely,  XXXX   XXXX   XXXX  I received the ( enclosed document ) from  The Bank of America a week ago covering the Automatic Termination of MI. This document states that when I reach 78 % of the original value of the property which was {$200000.00} or, if you care use the latest appraisal : {$190000.00}, the MI will automatically terminate. My latest statement shows a balance on th e account of {$150000.00} which is 77.9 % of the latest appraised value. Now that it has taken some 5 months since I paid down our mortgage to allow for the removal of the MI, I would ask for the last time Please remove the MI of {$150.00} from my loan costs or it will surely be determined to be  XXXX  by the  XXXX   XXXX   XXXX   XXXX . Please confirm the receipt of this letter and your removal of the MI by  XXXX   XXXX  to avoid legal action.    XXXX   XXXX   XXXX

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