Consumer complaint received 2019-11-27
Company: BROKER SOLUTIONS, INC.
State: PA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
in XXXX we received a mailer about refinancing our FHA loan. We called New American Funding and Spoke to XXXX XXXX NMLS # XXXX. During our conversation he asked what we were trying to accomplish and we stated we were looking to get the PMI removed. He then told us if we refinanced with them and made 6 on-time payments, we could call him and he would drop the PMI as he had done for many other customers of his. This is the only reason we chose to use this company. There was no other discussion on how it would happen, it was just call me in 6 months and I'll get it removed. So we refinanced with them and contacted XXXX again XXXX via email about dropping the PMI. He asked some questions about income and possible value of our home. I gave him the information and now he said well we ( my husband and I ) would have to pay for an appraisal and he cant just drop the PMI. We explained what our original conversation was and he said he didn't know why he would ever say that because that is not what happens. My husband and I were quite clear and on the same page as this is what XXXX promised. I wanted to converse with him via email so things were in writing but he never responded via email, he only kept calling me. 
After about a week, I spoke to my in-house mortgage guy XXXX XXXX from XXXX XXXX  as I am now a realtor. XXXX advised me to file a complaint with the company. I did and complaint XXXX approx. XX/XX/XXXX and was assigned XXXX XXXX. XXXX told me he would follow up in one week after he was able to review the recordings and determine what was happening. I did not hear back from XXXX so I called his office and left a vm around XX/XX/XXXX. I did not receive a call back so I called again XX/XX/XXXX and got his vm again. instead of leaving a message I called a main number to try to find out what was going on. A lady took a message and XXXX called me back. He said he was told by IT there were no recordings they could find. XXXX said he would try one more time but he was meeting with his SVP that afternoon and would contact me by XX/XX/XXXX to let me know the outcome. Then I received an email later that night saying he was able to get the recordings ... sounded suspicious considering for an entire week IT could not find any recordings. there was no explaining of to how all of a sudden these recordings now existed. but I was glad they did. 
On XXXX we get an email from XXXX : Good morning Mr. and Mrs. XXXX, Our IT Department was able to provide the recorded calls between Mr. XXXX and XXXX and I was able to listen to the call where the conversation with XXXX XXXX takes place regarding the mortgage insurance. 

The conversation starts off like a regular sales call and when it gets to the part of MI being discussed, XXXX begins to explain how he will receive notifications on files he has worked on, after a certain amount of monthly payment are made. 
It was in this part of the conversation where XXXX explains says, when you make your 6th payment, I literally get notified saying, hey call up XXXX and XXXX and see if we can remove mortgage insurance with Mr. XXXX replying, Ok. 
XXXX goes on to explain other refi options, including going to a 15year loan to save money, long term, where Mr. XXXX makes it clear the focus would be reducing the monthly payment by removing the mortgage insurance. 

Having said that, the only option to have the mortgage insurance removed, would be to have you refinance into a conventional loan product once you believe the value is high enough. 
If this is an option you would like to pursuit, my SVP has agreed to reimburse you the appraisal if and when the loan funds. 

We apologize for the misunderstanding and hope were able to assist in trying to meet your goal of having the mortgage insurance removed with the refinance option previously mentioned. 

XXXX what they forgot to mention was the proclamation XXXX made about being able to do this for many other clients. and other important information they missed. I requested a copy or to be able to listen to the portion of the recording since it is me and my husband on the call, but they said I would need a subpoena. that made me even more leery. 

They have offered to pay for an appraisal however if the home does not appraise for the value they expect, they will not remove the PMI. I have been advised there is something called Vendor Paid Mortgage Insurance which they could do. But they ignore me every time I bring it up and change the subject. I gave all this information to XXXX XXXX from XXXX XXXX XXXX  and he was shocked at their response. He advised me to file with the CFPB. If we were not told New American Funding would remove our PMI after 6 months, we would have never financed with them.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation