Consumer complaint received 2020-02-05
Company: United Shore Financial Services, LLC
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Before taking out a mortgage with this company ( UWM ), I specifically spoke to their representative about not having PMI on the mortgage. This conversation took place around XX/XX/2019. The representative explain to me that I needed to make 1 payment once the mortgage started, and then they could remove the PMI from the mortgage. The representative said that the company would just use the appraisal that was just done to close on the property since it was so new. The reason the representative gave was that the equity in the loan could not be transferred via purchasing the property at the time of sale, but the equity would be considered once the loan has begun and a payment was made. There was 25 % equity in the home at the time of purchase. The 1st appraisal that the mortgage company ordered to approve the loan and purchase the property was XXXX, and the purchase price of the property was $ XXXX, with XXXX down to close. I closed on the loan, and purchased the property. Within the first 8 weeks of owning the property I completely updated the property, and put approximately XXXX in upgrades in the home. I then contacted the mortgage company to remove the PMI as I had already made my first payment toward the mortgage. The mortgage company then stated they needed to send out another appraiser to do another appraisal on the property, despite telling me initially that they would use the 1 that was only 2-3months old. The mortgage company hired a different appraisal company to come view the property, and when this appraisal came back it was at XXXX, and so the mortgage company said they could not remove PMI because there was not enough equity in the home. Upon looking at the 2nd appraisal that was done I noticed huge inconsistencies. Two of the comparable 's that the appraiser used had recently sold for approximately XXXX, but the appraiser shows a XXXX reduction in the value of each of those properties with no explanation at all. The 3rd comparable that was used was a property that was not livable in the condition it was in, and needed a ton of work before being habitable. I seen this property myself because I actually put in a bid to buy it as a project. I then asked my realtor to run new comps just to see where the neighborhood was currently selling, and it was still at 300-320k plus depending on if your home was updated. I asked the mortgage company to explain how would a home lose XXXX in equity in 2 months, in which they can never give a response and just keep saying we understand your frustration and we are looking into it. I spoke with supervisors repeatedly over months, and they still have not solved anything. The last conversation I told them a new appraisal needed to be ordered, paid for by them, and it needed to be a mutually agreed upon appraisal company, not some company that just works for them. The mortgage company said they could agree to do that and needed to go through the approval process to get a 3rd appraisal done. This conversation took place in early XXXX of 2019. Since then I've called numerous times and left messages for the supervisors handling this matter to call be back to discuss, because a 3rd appraisal has still not happen, and I'm not getting any call backs at all. They are just ignoring me. Meanwhile I'm still paying $ XXXX/month for PMI, that should not be on the mortgage to begin with. I've attached both the 1st and 2nd appraisals so that you can see the extreme inconsistency with the 2nd appraisal.

Company response to consumer: Closed with explanation