Consumer complaint received 2016-04-07
Company: RoundPoint Mortgage Servicing LLC
State: FL
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
RoundPoint Mortgage ( RPM ) : Loan nr. XXXX - PMI removal Dear Sir : I got That mortgage about 3 years ago, the purchase price of my house at : XXXX XXXX XXXX XXXX XXXX XXXX, FL XXXX was back then {$450000.00} Since the market lows back then, Florida Real Estate market has been on fire, adding average of 5 % annually in property values. 
Due to that my intention was to contact you and request the removal of PMI since my LTV went down to 78 % : Balance {$350000.00} : purchase price {$450000.00} & gt ; 78 % I was advised that RoundPoint Mortgage was not able to use a purchase price and new appraisal was needed. Cost {$400.00}. 
Since the cost of that would be recouped in only 2 months of PMI payment, I decided to go forward. 
I was sure my house would appraise easily at $ XXXX or more since listings for identical homes on my street show {$590000.00} range. 
You can imagine my disbelieve when I received from RPM an attached letter stating that my request to remove PMI was denied. 
Reason : LTV shows 86.56 % WHAT?! 
It did not make any sense. I called and after long hold I was advised that appraisal came in with the value of {$410000.00} ... .which Is $ XXXX less comparing to what I paid for this house 3 years ago ... Insane. Market was going thru the roof over the last 3 years! 
I looked up this particular Appraiser XXXX on the internet, and all the reviews where so negative, I have no idea how RPM can use such incompetent company. Example : " Avoid this appraisal company, if possible. I read a bad review about them before they did my appraisal. I gave them the benefit of the doubt, but they did the same thing to me. {$30000.00} below the actual value of my home. Immediately request another appraisal company before it 's too late. '' I had a funny feeling when the gentleman showed up in the car displaying " BUYING HOMES FOR CASH '' So this was his main business, he runs appraisals to show low prices and then buy homes for cash ... nice. 
They apparently combine for averages foreclosed homes values, use old data to come up with the lowest possible price totally disconnected from reality. Their business is to buy homes for CASH! Here are few insane points of that appraisal : House that sold for $ XXXX had a pool, still smaller by XXXX sq. feet than our house, pool is worth maybe $ XXXX. $ XXXX higher than mine? 

This is just to show you their incompetence. I have no intention to pay {$400.00} for such bunch of baloney. 
I decided to give RPM the chance to correct that problem and remove my PMI and/or arrange another appraiser that is competent and fair. I called and emailed them, nobody every cared to call me back. Instead, I got today another letter showing they decided to transfer my mortgage to another servicer ( to put an and to my PMI removal affair I am sure ) I hope we can come to some resolution as I know for sure my LTV warrants removal of PMI at this point. 

Thank you! 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX 
XXXX XXXX, FL XXXX XXXX

Company response to consumer: Closed with explanation