Consumer complaint received 2018-07-25
Company: Specialized Loan Servicing Holdings LLC
State: TN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Specialized Loan Servicing ( SLS ) refuses to remove Private Mortgage Insurance ( PMI ) from a mortgage payment. For the last 3 months at least, we have called SLS repeatedly to get PMI removed from the mortgage payment. At first, based on the information they provided, SLS informed us the company would accept a local property assessor valuation for removal of PMI. After following up on the letter requesting removal of PMI and the assessor documentation, the company refused to remove PMI. This same situation of repeatedly being told how to remove PMI and being given wrong information by their representatives continues. Once SLS refused to remove PMI based on the local property assessor valuation, we asked the amount we would need to pay in additional principal to get the outstanding principal below the 80 % level where under the Homeowners Protection Act with Private Mortgage Insurance for loans closed after XXXX XXXX, it is our right to request PMI be cancelled. The representative told us by paying {$5800.00}, the mortgage balance would be below the 80 % level necessary for the PMI to be dropped. We have repeatedly been sent requests asking for an appraisal of the property and SLS refuses to move forward with dropping PMI without the appraisal. Based on the documentation SLS has sent us numerous times, the letter does not state an appraisal is required at below 80 %. 

The letters state the following under Your Right to Cancel PMI : You have the right to request PMI be cancelled on either : 2. The date the principal balance actually reaches 80 % of the " Original Value '' of the property. " Original Value '' means, at origination of your loan, the lesser of ( i ) appraised value or ( ii ) sales price ( the dates described in paragraphs 1 and 2 herein collectively referred to as the " Cancellation Dates '' ).

There is no appraisal necessary based on what the law states in Line 2 above.

One representative who was a supervisor told us it does not matter what are representatives tell you. It is what the letters we have sent you state. 

We have made the payment to get the principal payment below the necessary threshold to have PMI removed and the company still will not remove it. The representative who we called last told us not only would it be removed, but we could expect a refund for the PMI payment in the last mortgage payment. One representative gave us the cashiers address for SLS to make the payment to. He said give it about two weeks to get credited to the account. Once it was credited, PMI would automatically be removed. I do not think we have talked with one representative at SLS who actually did not give us false information. Moreover, SLS has the main call center in total darkness. The representatives refuse to give out any information on how to reach corporate executives or even where they are located to resolve an issue. I called XXXX XXXX to find out if they were the investor on the loan. XXXX XXXX told me the company would be able to tell me. The only way to get the investor information after making two calls to the company is through a written request. We have made repeated requests in writing to SLS and every time what they told us to get PMI removed has been a writing request waste of time. The company must know most people will not take the time to make a written request and is most likely why they have the policy. 

Based on our understanding of the documentation SLS has sent us, we have a right to request PMI be removed based on our extra principal payment. Period. Nothing else is necessary under the XXXX for Borrowers with PMI.

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