Consumer complaint received 2016-09-24
Company: JPMORGAN CHASE & CO.
State: LA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
I have requested a cancellation of my PMI 2 times in the last 2 years and both have been denied by Chase Mortgage due to the outstanding balance being over the LTV threshold. While I am familiar with the HPA guidelines for PMI cancellation, here is where the conflict lies : When I purchased my home XX/XX/2010, I purchased it significantly less than the Fair Market Value because the previous owner was being relocated by his employer. The employer bought out his house and simply liquidated it on the market as a relocation buyout, which I capitalized on the opportunity. Chase Mortgage advised me, despite documentation, they could not perform a fair market value appraisal, however could only have the house appraised for the selling price. I was told no exceptions can be made to this internal policy. As a result, the home value was set at {$220000.00}, the selling price, despite there being several other comparable sales in the neighborhood ranging from $ XXXX - $ XXXX. Roughly six years and {$13000.00} in premiums paid later, they are basing the LTV on the XXXX, which was not the original fair market value 6 years ago, nor is it the current fair market value. I am aware the verbiage states XXXX % or less of the original market value, however Chase has yet to establish the original fair market value. The " value '' they arrived at 6 years ago was predetermined before any assessment of the home was performed because of their internal policy. I had comparable sales of $ XXXX- $ XXXX and documentation that the discounted price was only due to a relocation buyout from the previous owner 's employer. 
This has fallen on deaf ears with 2 separate requests in the last 2 years. The most recent request on XX/XX/XXXX was not even considered. I spoke with XXXX XXXX explaining him the scenario on XX/XX/XXXX. He said he would submit a request to have it reviewed by a specialist, which he did. I told him instead of typing out the above narrative, please have the specialist call me BEFORE processing the request, as obviously this is a unique situation. I followed up with XXXX XXXX on XX/XX/XXXX since I did not receive a call. He advised me the request was processed on XX/XX/XXXX and apologized that the specialist did not call. He advised me he was messaging the specialist on XX/XX/XXXX to revisit the notes for me to receive a phone call. As of XX/XX/XXXX, I still have not received a phone call or follow up to provide them this information. It has been considered in the past on my initial request for cancellation, however I was told I could refinance it to see if that would bring about the desired solution. This does nothing but get Chase another transaction closed, increases my balance due to closing costs and re-starts the amortization process. I even offered to have an actual FMV appraisal done, based off the comparable sales method for additional due diligence ( by the way, the original appraisal has XXXX comparable sales for $ XXXX and $ XXXX from 6 years ago ). 
When applying simple reason and common sense, Chase has exhibited they have absolutely no interest in my specific situation and are in violation of their own corporate core values of " doing what is right '' and " fair lending practices. '' I should have not been penalized 6 years ago on the market value, however I had to take that on the chin based on their policy. The fact is that there is outstanding, objective evidence that this house 's fair market value was approximately $ XXXX 6 years ago and that should be taken into consideration in this context when determining the cancellation request.

Company response to consumer: Closed with explanation