Consumer complaint received 2018-01-23
Company: JPMORGAN CHASE & CO.
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My complaint relates to Chase 's refusal to cancel private mortgage insurance ( PMI ) from my mortgage loan in accordance with its advertised policies. Specifically, Chase 's denial of my request to remove PMI is based upon a " broker price opinion '' ( BPO ) that was so irrational and incorrect that the only explanation is that it it is indicative of a deceptive, sham process designed to create an artificially low value for homes underlying Chases mortgages. 

In XX/XX/XXXX, I requested that Chase cancel PMI on my loan because I believed that the LTV ratio was below 80 %. Chase advertises that PMI can be canceled if the LTV ratio is below 80 % and that it will utilize a BPO to determine a current value for the home. The BPO then was completed at my expense. On XX/XX/XXXX, Chase sent me a letter, with the BPO attached, indicating that my PMI could not be canceled because the LTV was below 80 %. 

The BPO placed a value of our home at {$510000.00}. As described further below, the BPO ( 1 ) is not supported by truly comparable sales, ( 2 ) represents a {$20000.00} DECLINE since we purchased the home in XX/XX/XXXX, during which time the market in our neighborhood has appreciated considerably, ( 3 ) ignores improvements that we have made to the home and ( 4 ) is not representative of the current market value for our home. When considered together, this is illogical and incorrect, so I contacted Chase. In early XX/XX/XXXX, I had a conversation with customer service at Chase to dispute the BPO and sent the supporting documentation that is attached with this complaint and summarized below. The BPO also is attached. On XX/XX/XXXX, Chase sent me a letter stating that it was standing by the BPO. 

The BPO utilized by Chase is based upon one comparable home that is in a different neighborhood and is not reflective of the overall real estate market in our area or the value of my home in particular. By contrast, I have attached a market analysis and opinion from a real estate broker familiar with our market, which reflects a valuation of {$630000.00}. As another example, I have enclosed information from a home sale that is more recent, closer in distance, and aesthetically more similar to my home than the primary comparable home that was used in the BPO. This comparable home sale is consistent with a value in the mid- to high- $ 600,000s and more in line with the enclosed market analysis. 

We purchased our home in XX/XX/XXXX for {$530000.00}, a price supported by an appraisal at the time. I understand that the BPO does not take our purchase price into consideration ; however, both the market analysis referenced above and the enclosed real estate data for our neighborhood ( XXXX XXXX ) show the appreciation in prices over the last 5 years. In addition, since we purchased our home for {$530000.00} in XX/XX/XXXX, we also have made upwards of {$20000.00} in improvements. Concluding that our home is worth considerably less than it was in XX/XX/XXXX is, quite honestly, so ridiculous that the entire BPO should be discounted out of hand.

I also understand that reasonable people can rationally disagree about the value of a home ; however, considering all of the factors above, a BPO that indicates a value of {$20000.00} less than the XX/XX/XXXX purchase seems so illogical that I have to wonder if there is either a mistake or if it is intentionally deceptive. Chase assures me it is not a mistake, which leads to my complaint that Chase 's process is clearly designed to create an artificially low price and not to determine an honest value of a home ( and resulting LTV ), which is deceptive and contrary to its stated policies.

Company response to consumer: Closed with explanation