Consumer complaint received 2023-02-14
Company: LoanCare, LLC
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I submitted a request to my mortgage servicing company, LoanCare, for the termination of my Property Mortgage Insurance ( PMI ). The request was submitted because my property value has significantly increased thereby enabling the " Loan to Current Value '' ratio of my mortgage to be less than 80 %. which is the qualification that Loan Care says must be met for the termination of my PMI. After I submitted my request, LoanCare sent me a letter indicating that I needed to get an property assessment ( see attachment ). They offered me XXXX options to get the assessment done, BPO ( Broker Price Opinion ) for {$150.00} or a Standard Appraisal for {$320.00}. I chose the BPO option and made the non refundable payment to LoanCare. Please note that the BPO determines the " CURRENT VALUE '' of my property which is the determining factor that LoanCare stated it would use to determine PMI termination eligibility ( see attachment ). I received a call from the BPO representative, set an appointment and the representative came to my property and did a thorough assessment. On XXXX I received a letter from LoanCare indicating that the BPO assessment had been done but I was determined to be INELIGIBLE for the termination of my PMI. I telephoned LoanCare regarding their decision and I was informed that the BPO assessment was not utilized in their evaluation but rather a Property Value at Origination ( PVAO ) of the loan amount was utilized ( see attached document ). Please note that the PVAO amount ( {$400000.00} ) is considerably less than the BPO assessment amount ( {$450000.00} ). LoanCare told me that if I wanted to proceed with terminating the PMI I would have to pay down the mortgage loan balance in the amount of {$16000.00} OR I could request and pay for the standard appraisal ( {$320.00} ). I questioned this determination. I asked the LoanCare representative the following : XXXX. Why wasnt the BPO assessment that LoanCare offered me to get ( and I paid for ), why wasnt it utilized in the evaluation. The BPO assessment amount came to {$440000.00}. The " Property Value at Origination '' amount is {$400000.00}. The LoanCare representative said that she didn't know why. If LoanCare would have utilized the BPO, I would have definitely have been determined to be eligible for PMI termination. Also, I informed the representative that LoanCare DID NOT indicate in their initial letter sent to me dated XX/XX/XXXX, that the BPO would NOT be considered in the evaluation process. If I knew that it would not be considered, I would not have paid for and elected to utilize that option for the appraisal. XXXX. Why wasnt I initially informed that the " Property Value at Origination '' amount of {$400000.00} would be used to determine my eligibility for PMI termination rather than the BPO. The PVAO was not mentioned in the XX/XX/XXXX letter that LoanCare sent me. The LoanCare representative said she did not know. The LoanCare representative again stated that if I wanted to get a full appraisal, I would have to pay {$370.00}. I asked the representative the following : XXXX. If LoanCare did not used the BOP in the evaluation why would the company use the full appraisal amount in the evaluation instead of the Loan at Original Value amount? She could not answer that question either and stated that my request would be further reviewed. Finally, LoanCare stated that my Property Value at Origination is {$400000.00}. However, on my dashboard on LoanCare 's website it indicates that my Original Loan Amount is {$350000.00}. Obviously, LoanCare 's evaluation and determination of my request for cancellation of my PMI insurance was totally incorrect if not fraudulent. I am asking that my application for termination of my PMI be granted and that I be reimbursed for any overpayment that I am due. Thank you for your time in reviewing this correspondence.

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