Consumer complaint received 2016-08-09
Company: LD Holdings Group, LLC
State: AZ
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Application, originator, mortgage broker

Complaint:
In XXXX, IMORTGAGE, INC sold me a mortgage package ( conventional loan ), including a single premium PMI policy. XXXX mortgage and imortgage were involved and acted as my sole point of contact. I thought I was purchasing a PMI policy with refundable options per the XXXX of XXXX, but was given a non-refundable PMI policy with no disclosure, warning or notification. This has led to my loss of approximately {$6000.00}. 

XXXX/imortgage seemed to be XXXX cohesive company at the time of my purchase. I 'm not clear on how they relate currently. 

I believed my policy to have pro-rated refund attributes as per the XXXX of XXXX. At no point during my entire interaction with XXXX/imortgage or anytime prior to closing, or after closing, was I informed my policy was non-refundable. I did not know such an offering existed. I was NOT presented with a PMI certificate at my closing which called out a " non-refundable '' policy. To the contrary, I was given generic PMI disclosures which stated I had the right to cancel PMI at an 80 % LTV and that certain protections under the XXXX applied to my policy. This is called out in section XXXX XXXX b. ) of my Deed of Trust document and my Private Mortgage Insurance Disclosure form, both provided at closing. 

Upon selling my home in XXXX and paying my loan off in full I requested a refund of my unearned premium from my PMI policy. I was 25 months into my scheduled 80 % LTV time period ( XXXX months ), which I had understood to mean I would receive roughly 75 % of my Single Premium back as an unearned premium. This amounts to approximately {$6000.00}. It was at this time that I first learned I had a " non-refundable '' PMI policy. I was then presented, for the first time, with an unsigned PMI certificate which listed the policy as non-refundable. 

Upon learning of my surprise non-refundable status I contacted XXXX and imortgage to understand what notification or information I may have missed during my proposal and purchase process that would have let me know I was buying a non-refundable product. Imortgage claimed to have no record of my loan and offered no assistance at all. The loan numbers I provided along with my SSN did not pull up any records with imortgage. XXXX response is that they are n't responsible for providing any of that info since they do not sell the PMI product. They have washed their hands of responsibility even though they were the sole point of contact of the PMI product. At no point did I have any contact with anyone else regarding the PMI policy. It was all solely through XXXXimortgage. 

XXXX/imortgage failed to provide basic information on a product they bundled with my mortgage and misled me into believing my policy had refundable attributes. Through XXXX/imortgage 's intentional or unintentional neglect I have lost approximately {$6000.00}. 

Additionally, XXXX stated that had I paid down my loan below 80 % that I would have qualified for HPA refund status and would receive a pro-rated refund of unearned premiums. Since I sold my home and paid it off in full, however, they state that the XXXX refund status does not apply. I believe XXXX is skirting around the XXXX on an incorrect technicality. XXXX refund status should be granted when a homeowner owes less than 80 % of a mortgage. That happens when a load is paid down AND when a loan is paid off in full. In either situation the mortgage risk is absolved and the XXXX refund status should apply.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation