Consumer complaint received 2020-01-30
Company: FIFTH THIRD FINANCIAL CORPORATION
State: IL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
In XXXX of XXXX, I inquired with Fifth Third Bank, the new holder of my loan, about an appraisal to remove the PMI from the mortgage I started on XX/XX/XXXX for a 3-unit building I bought for {$520000.00}. I have made approximately {$150000.00} in substantial improvements to the building since buying it. I had put 5 % down on the mortgage so that I could use the rest of my money to make these improvements to  increase building value and rents. I was told at closing that once I had increased the value to 20 % of the purchase price, my PMI would be removed. 

I received a letter in the mail shortly afterward, telling me to fill out a form detailing the improvements I had made, and to fax it to the company. I immediately filled out the form and faxed it back. About two weeks after that, I called the company to see if the form had gone through, since I had not heard from the appraiser to schedule the appraisal. They assured me that the case had been opened, and that I should wait a few more weeks. 

I waited two weeks, and then sent a message through 5/3 's  online portal on XX/XX/XXXX, which is attached. XXXX ( or XXXX ) XXXX called me back and told me it would take her a few days to check with the escrow department, as apparently the department " did not have a phone number. '' I waited a couple of days for her to call me back, when she informed me that the office had " lost '' my request. 

She sent me a letter ( attached ) on XX/XX/XXXX telling me that I could send the form again by mail, fax, or online, and the PMI would be removed if the appraisal reduced the LTV to 75  %. I decided to do it online, but found no way to do so, so I sent the message on XX/XX/XXXX, also attached, detailing the same information. XXXX called me again, saying that I had to mail or fax the form that she would send me in the mail. I waited for the new form to arrive, filled it out yet again, and faxed it the exact same way I had faxed the previous one. On XX/XX/XXXX, I received another, error-riddled letter ( attached ) saying that since this was an investment property, I needed to reduce the LTV to 65 %. I have been clear from the beginning that although this property contains rental units, it is my primary residence and has been since the purchase date. This letter seemed to assume that I could not have lowered the LTV that much and essentially dismissed my request, telling me to send a new one at a later date, even after 4 months of correspondence to the  contrary. 

I tried numerous times to reach XXXX again by phone, but my calls all went to voicemail and were not returned. I left several messages stating that I still wanted to get my building appraised to remove the PMI. I also started looking into alternative ways to remove the PMI, like refinancing the loan. On XX/XX/XXXX, I managed to reach another person in the Vice President 's office, whose name I don't remember, who told me that XXXX was the only person who could help me ( as my case was assigned to her ), but that she had left the office early. That night, I finally sent another ( attached ) message detailing the reasons the letter was incorrect and requesting them to contact me with the correct information, as I had received incorrect information throughout this process. I did not receive a response beyond the vague promise of yet another letter. 

After waiting for a response, I went forward with the refinance and closed on my new mortgage on XX/XX/XXXX. The PMI was nearly $ 300/month and I did not want to get jerked around any longer by 5/3 's greed and incompetence. Since my request, this correspondence has lasted 5 months, costing me {$1400.00} in unnecessary PMI and {$2300.00} in mortgage origination costs when 5/3 stopped communicating with me. 

My building was appraised at {$710000.00} by the new servicer, making my new LTV approximately 57 %.

Company response to consumer: Closed with explanation