Consumer complaint received 2018-07-19
Company: NATIONSTAR MORTGAGE LLC
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/18 : Closed on our new construction home with XXXX XXXX XXXX, XXXX XXXX, GA. We were told during the closing that we would be able to pay down the principle on the loan to eliminate the Private Mortgage Insurance. We were in the process of selling a home and did not have the required down payment. Our intention to pay down the mortgage and elminimate the PMI was well known and discussed with our mortgage broker XXXX XXXX and the closing attorney. 

Mortgage was subsequently sold to Nationstar Mortgage LLC ( DBA Mr. Cooper ) XX/XX/2018 : Sent two checks to Mr. Cooper with our monthly coupon. One check for the normal monthly payment and a second for {$90000.00} marked for Principle Payment Only. The coupon was also notated for normal payment and the additional {$90000.00} Princliple Payment. 

XX/XX/18 : Called Mr. Cooper and spoke to XXXX XXXX about cancelling PMI. I asked if the original appraisal on the new construction home was sufficient as per the stipulations on the PMI disclosure I signed at closing. I was told no and provided additional stipulations that were not part of my original disclosure. I asked to be transferred to XXXX XXXX 's supervisor who continued down the same path. I then asked to speak to someone in the PMI department and was told they were not in at that time. 

XX/XX/18 : Spoke with customer service rep XXXX # XXXX from Kansas who informed me that my {$90000.00} Principle payment was incorrectly applied. The next monthly payment was subtracted from the principle payment prior to crediting the remainder to Principle. XXXX confirmed that he had made an adjustment in the system to properly apply {$90000.00} to Principle and advised me to make my next regularly scheduled payment. 

I asked to be transferred to the PMI Department and XXXX answered the phone. I stated everything that I previously stated during my original call on XX/XX/18 and was again told about criteria that was not on my PMI disclosure from closing. I asked where the additional critera was coming from and was told that I could find the answer in the Homeowner Protection Act. I read XXXX the criteria on the PMI disclosure : 1 ) Submit request ( she never provided an address ), 2 ) Good payment history, 3 ) Current on payments and 4 ) Evidence the value of the property had not decreased. I asked if the original appraisal on the home ( from XX/XX/XXXX ) would be valid and was told " I don't see why not ''. I was told the paperwork would be processed and that my loan to value was 74.18 % which is under the Borrower Requested Cancellation of PMI requirement of 80 % AND the Automatic Termination of PMI. 

XX/XX/18 : After noticing the error in applying my Principle payment had not been corrected on my next statement I called the PMI Deaprtment again and spoke to XXXX XXXX at x XXXX. I repeated the entire story and kept referencing my PMI disclosure but was told request to cancel my PMI was not put through. I was told that XXXX XXXX his supervisor would contact me on XX/XX/18. I have not heard from her or anyone from Mr. Cooper.

Company response to consumer: Closed with explanation