Consumer complaint received 2020-11-03
Company: U.S. BANCORP
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
In XXXX of XXXX I called US Bank looking for information on removing the PMI from my home mortgage. I received a letter on XX/XX/XXXX ( Attachment # 1 ) laying out the two options available to me moving forward. At this point I elected for Option 2 or Current Value Cancellation which involved paying {$320.00} for an appraisal to determine the new Loan to Current Value ( LTCV ) ratio. I pay {$88.00} in PMI each month to US Bank. I have a 2 bedroom and XXXX bathroom home. 
If you are in the first two years or over five years on your loan, you need 80 % or less LTCV. If you are in years three or four, you need 75 % or less LTCV. It is not clear to me why years two to five are different than any other time on your loan. Adding another complexity to this whole situation, my loan was closed on XX/XX/XXXX so I will be at the 5-year threshold in just a few months. 
The appraisal was completed on XX/XX/XXXX. US Bank and the appraiser told me that he had to get the appraisal back to the bank within 10 days, and the bank had two weeks to process and respond to the PMI removal request. 
25 days later, on XX/XX/XXXX I called US Bank looking for information on the outcome of my PMI removal application. I was told that it was estimated to be resolved on XX/XX/XXXX. I inquired about the timeline I was originally given and was not given an answer. On XX/XX/XXXX, I again called looking for information on my case. I was told that I did not meet the requirements for PMI removal and that I would be getting my appraisal in the mail. I received a letter saying the same a few days later ( Attachment # 2 ). This letter did not include the appraisal. After not receiving the appraisal for another two weeks, I called again on XX/XX/XXXX and was able to get a copy emailed to me. The woman I spoke to told me I had to submit a dispute immediately because I only had 60 days from the date of the appraisal to dispute it. 
I submitted a formal dispute to my appraisal on XX/XX/XXXX. I did receive the appraisal in the mail that same day, post marked for XX/XX/XXXX. ( Attachment # 3 ). I had three major points of dispute with the appraisal. XXXX. I have a patio which was not reflected on the appraisal. 2. Four of the six comps pulled had only 1 bathroom. My house has 2.5 bathrooms. To equalize these comps the appraiser credited these houses {$1000.00} for a half bath and {$2000.00} for a full bath. This extremely low credit value disproportionately affected my appraisal value ( Attachment # 4 ). You can not refinish an existing bathroom for {$1000.00} - {$2000.00}, let alone build an entire new bath. 3. Of the three comps that were included and sold, they dated back to XX/XX/XXXX, XXXX and XXXX of XXXX. The oldest was sold 6 months before my appraisal and 8 months before I even received a copy of the appraisal. 

After submitting the dispute ( Attachment # 5 ), I received an email back from US Bank ( Attachment # 6 ) the following day stating I had to fill out the attached Reconsideration of Value Request forms. These were completed and returned immediately as it was the 58th day since my appraisal and I only had 60 days to submit. I filled out the form using comps with two bedrooms and two and a half baths. I received the Reconsideration of Value Request form in the mail ( Attachment # 7 ) sometime XXXX with a date of XX/XX/XXXX on the letter. If I had not been calling US Bank over and over again, I would have received this form too late to file it. 
Following the dispute submittal on XX/XX/XXXX, I called US Bank a few times to inquire if a solution had been achieved. Sometime in mid to late XXXX I received a letter dated XX/XX/XXXX ( Attachment # 8 ) stating that the rebuttal request had been submitted and the results are outlined in the attached report. Unfortunately, but not surprisingly, there was no attached report. In the letter, it did say that I still had not reached my loan to value ratio required ( LTV now 79.4 % ) but they would be more than happy for me to pay them {$10000.00} to reduce my unpaid principle balance to {$180000.00} and they would remove the PMI. 
I called US Bank and escalated my case up to a supervisor who told me that the appraisal had been adjusted to {$240000.00} because they didnt include the patio, but the comparable properties that I had sent were listed or sold after the original appraisal was completed and they were unable to consider them. They also said that even if they could, these properties had decks and would not be comparable. I am wondering how a onXXXX bathroom home could be comparable, but a home with a deck is not comparable. I am also wondering why homes sold 6 months prior to an appraisal are comparable, but they would not consider homes sold 2 months post appraisal. 
During the call I filed a Consumer Advocacy Complaint with US Bank regarding my entire case including the process and disinformation I had received along the way. The major piece of my complaint revolved around the comps that were used for the appraisal. I was told before ending the call that the consumer advocacy center reviews these cases within a month. 
I called back a month later at some point in late XXXX and I was told that the expected resolution date was XX/XX/XXXX. I told them that I had been told in XXXX that it was supposed to take a month to consider the case. The person I spoke to told me that I had actually spoken to their boss in a previous phone call and that they were incorrect. I asked that these issues be added to my open case with Consumer Advocacy Center. The person I spoke with also asked if I had received a letter stating they had received my complaint. I said I had not. Two weeks later I received a letter ( Attachment # 9 ) stating that they had a specialized team reviewing the case and issues I had raised. The expected response time was 10-15 days from the date of the letter I had received which was XX/XX/XXXX. Ive now paid {$880.00} in PMI since beginning of the process. 
In the last week of XXXX, I received a letter from Customer Advocacy Specialist XXXX XXXX XXXX Attachment # 10 ). All that was included in the letter was a recap of the appraisal dispute and reiterated the appraisers comments to the comparable properties I had included. They said that my appraisal was no longer valid, that I could not submit anymore disputes and that they would be more than happy for me to pay another {$320.00} for another appraisal. They were sorry that what I have outlined above was frustrating, inconvenient and they regret if I feel that I did not receive superior service. 
I once again called US Bank to speak with someone in the Customer Advocacy team since the bottom of my written response stated that if I wished to discuss this matter further, please contact the Customer Advocacy Center at XXXX. 
The number that I was given was for Customer Service who escalated me to a supervisor. He told me there was nothing he could do and if I wanted to file another complaint with Customer Advocacy I could. He told me that there was no way for me to speak with Customer Advocacy. I asked if I could speak to his boss and he told me that his boss doesnt take phone calls. Eventually he XXXX XXXX XXXX, the person who signed my letter, and they told him to contact the Vice President. 
XXXX XXXX called me back a few minutes later to discuss my case. To sum up the XXXX phone call, US Bank did not investigate my claim that the comps used were the most accurate. He stated that US Bank didnt see an issue with the process and nothing else could be done. 
This process has lasted almost an entire year, I hope that the CFPB can assist with finding some sort of reasonable resolution. Ive paid {$960.00} in PMI since the beginning of this process.

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