Consumer complaint received 2017-07-25
Company: Seterus, Inc.
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Complaint is against Seterus who refuses to cancel PMI and I have reached out to them on XX/XX/XXXX only with them to reply that I was 30 days behind on my XXXX payment. I sent this letter to them : I am in receipt of your letter dated XX/XX/XXXX. Wherein you stated it was determined that your loan does not meet the necessary requirements for private mortgage insurance ( PMI ) cancellation, therefore, we must decline your request. Furthermore, you stated to qualify for PMI cancellation, you must demonstrate a good payment history over the most recent on-to two-year period. The XX/XX/XXXX installment payment was received more than 30 days past due ; therefore, you have not satisfied the payment history requirement. This is an incorrect statement because as you are aware ; we have never been late within the last two year period. The XXXX loan payment was drafted from our XXXX XXXX XXXX account on XX/XX/XXXX which is confirmed by your own authorization letter dated XX/XX/XXXX Confirmation number XXXX which is enclosed for your review. Additionally, your own correspondence letter dated XX/XX/XXXX responding to our correspondence to you regarding the unprofessional treatment received by one of your representatives. That letter is also enclosed for your review. On paragraph 5 of that letter you wrote : We received your payment of {$1500.00} on XX/XX/XXXX which was applied to your suspense account. So again lets be clear we have not been late as I indicated in my previous letter. In another conversation with XXXX XXXX on Mon XX/XX/XXXX, she advised the XX/XX/XXXX payment was not applied or held in suspense for an unknown reason but she sent an email to have the funds diverted back to the account. We have met every condition to cancel the PMI which states the loan-to-value ( LTV ) must be 80 % or less based on the property type which is FIXED, origination date and value of the property. We requested in writing to cancel PMI, submitted the cancel request form and included the {$350.00} check to cover the cost of the appraisal fee. Under federal law, PMI will automatically terminate on the termination date if it was not previously cancelled and you are current on your mortgage payments. For a fixed-rate loan the termination date is the date on which the principal balance of the mortgage is first schedule to reach 78 % of the original value of the property securing the loan, based solely on the initial amortization schedule for that mortgage, irrespective of the outstanding balance for that mortgage on that date. This information taken from your Annual Notice Concerning Private Mortgage Insurance letter dated XX/XX/XXXXwhich is enclosed for your review. The original Value on DLS : {$300000.00}. My wife is currently undergoing treatments for XXXX XXXX and we are not looking for any handouts. We just want you as a servicer to do what is legally right and cancel the PMI so that extra money can help cover the medical costs, deductibles and medicine that is not covered under her medical insurance.

Company response to consumer: Closed with explanation