Consumer complaint received 2017-12-17
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I have a home I purchased in XX/XX/XXXX, through Countrywide, in the amount of {$130000.00}. I was caught up in the scam that came to light a year or so later. During this time, Bank of America took over the Countrywide mortgages. My late husband and I became unemployed and had to get a re-modification on our home loan. The PMI in XX/XX/XXXX was {$460.00}. We re-modified with Bank of America in XX/XX/XXXX. During the re-modification is came to my attention that the PMI was now {$530.00} a month. My monthly mortgage payment after the re-modification is {$600.00}. I will never be able to pay off my house. I was told that the PMI could not be adjusted at the time of the re-modification and we needed to contact the insurance company to see if they would make the adjustment. 

In talking with XXXX XXXX, they said they are unable to lower our PMI insurance amount. Even though we got a re-modification we will have to continue paying the {$560.00} a month to them unless we can get our loan refinanced or pay 80 % of it off. Bank of America has told us that the loan is held by XXXX XXXX and they would be the company to approve lowering the PMI amount. I have no contact information on whom to talk with to get this lowered. I mentioned this to Bank of America, they were unable to give me a contact at XXXX XXXX to lower the PMI. My husband has since passed away and I am trying to get my home paid off, however, the PMI rate is making it impossible. I paid {$130000.00} for the house. I have paid {$60000.00} to PMI and only about {$10000.00} on the house. There is something drastically wrong with these numbers. If I ever get this paid off I will have paid around {$350000.00} for this house, most of it going to PMI. I understand that the beginning payments go to the interest. However, the PMI is even higher that my interest payments. I am basically making a double house payment. How does that happen? I didnt have any money down when we purchased this home. Even so, the fact that the PMI is as high as the mortgage payment and keeps going up, makes me feel like I am paying a loan shark on a note that will never ever be able to get paid off or being discriminated against. 

I filed a complaint with the Insurance Commission and the Attorney General in North Carolina. I was informed that the PMI insurance company does not dictate what the amount of the PMI should be. XXXX XXXX XXXXXXXX dictates this. In talking with Bank of America I just get a run around. I have made my mortgage payments on time since the re-modification, yet my PMI has been increased over the past 10 years instead of decreasing. I find this PMI to be excessive. I have tried to refinance with a VA loan through XXXX XXXX, however, due to the fact that I am upside down I was denied. 

Anytime I ask other homeowners what their PMI is and how long they have to keep it on their loan it is usually around {$100.00} for 5 years. Many of them didnt have a down payment either, they just dont have the loan through Bank of America. Whenever I mention the amount I have to pay they are amazed at how excessive it is, especially for the cost of my home. Not being able to negotiate the PMI to a lesser amount, have it removed or be reimbursed for the excessive fees continues the hardship against me due to the way the original loan was processed through Countrywide. 

I am not sure if your office is the one to complain to. XXXX XXXX and Bank of America have profited greatly off of me. I could have had more of my home paid off if I did n't have this extremely high PMI. I would like to be able to recoup some of these monies I have paid XXXX XXXX and Bank of America for excessive PMI fees, and if I have to keep the PMI on the mortgage, have them lower it to a more reasonable amount. I would really like to have some of the PMI monies returned or applied to my mortgage and the PMI removed so I can get my house paid off within the next ten years. I have been trying to pay extra on the mortgage payment in order to get some of the principal paid down. Every month I look at my statement and hardly anything coming off the principal, but more and more on the PMI. I have attached a copy of my invoice to show you the fees. 

I would appreciate any assistance you can lend me in trying to solve this issue and having a lower the PMI rate, reimbursement for some of the PMI I have paid due to excessive fees, or have the PMI removed completely so I can one day get my house paid off.

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