Consumer complaint received 2017-11-06
Company: PNC Bank N.A.
State: OR
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My complaint pertains to PNC Mortgage and automatic termination of PMI. I originally closed the associated conventional loan through iMortgage in XXXX, XXXX. XXXX, XXXX was the original provider of the PMI. My monthly PMI payments were {$43.00}. The loan was sold to PNC Mortgage and one of their companies took over the PMI. When I closed with iMortgage, the closing documents included the Private Mortgage Insurance Disclosure -- Fixed Rate Mortgage ( copy of this is attached ) document which was the only PMI information that I received during the mortgage and closing process. Under Automatic Termination of PMI, it states the following : " If you are current on your payments, PMI will automatically terminate on the date the principal balance of your loan is first scheduled to reach 78 % of the original value of the property. This date is XX/XX/XXXX. For balloon loans ... ... .. '' When I signed the PMI document, I asked them about the XX/XX/XXXX date. I recollect that they said the XX/XX/XXXX date was used so that I could pay down the loan and once the principal was below 78 %, the PMI would automatically be cancelled without having to pay it until the principal balance of loan was first scheduled to reach 78 %. 

I have been going round and round with PNC on cancelling PMI for months. I originally asked a question online about the termination/cancellation in XX/XX/XXXX and at the end of XX/XX/XXXX received a letter saying that the loan closed as a primary residence so it was part of the Homeowner 's Protection Act and they sent me a bunch of information regarding the right to terminate and automatic cancellation. At the time, the loan principle to appraised value was below 80 % but not 78 %. They said I could request termination, but would have to have the property appraised for {$500.00}. They sent the forms. The two letters that PNC Mortgage sent to me on XX/XX/XXXX are attached. 

The principal balance was below 78 % with my XX/XX/XXXX payment but PMI has not been cancelled. On XX/XX/XXXX I wrote PNC Bank a letter requesting cancellation of PMI. A copy of that letter, copy of the PMI Disclosure statement, and their response is attached. They are now saying that after further review, the loan closed as a second home and is not covered by the HPA and does not allow for automatic termination ; however, the loan adjuster allows automatic deletion once the LTV reaches 78 % by original amortization, which is XX/XX/XXXX. They never addressed the automatic termination date of XX/XX/XXXX which is in the Private Mortgage Insurance Disclosure -- Fixed Rate Mortgage that I signed. 

My complaint is that the PMI disclosure statement does not distinguish between primary, secondary or any other ownership and clearly states an automatic termination of PMI when the principle balance is first scheduled to reach 78 % of the original value of the property which is XX/XX/XXXX. PNC 's website on PMI at https : //www.pnc.comXXXX, seems to back this up ( copy attached ). The current principal to OV is below 77 % and I still request cancellation of the PMI. I seek your assistance and advice. 

XXXX XXXX

Company response to consumer: Closed with explanation