Consumer complaint received 2015-07-31
Company: M&T BANK CORPORATION
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Application, originator, mortgage broker

Complaint:
M & T BankXXXX XXXX MD XXXXXXXXSUBJECT : Refund of all PMI charges on my loan. 
Ref : http : //www.consumerfinance.govFew weeks back I went to XXXX XXXX XXXX for review on the current refinance offer the representative told me that by looking at your loan and down payment the XXXX XXXX financial had made the serious error on your mortgage. Please remove PMI and refer all my payment its was simple bank error or misunderstanding of law as per XXXX XXXX XXXX Associate who just do mortgage this for leaving. 

The Condition on the PMI are LTV ( Loan to Value ) Ratio must be less than 78 % for automatic termination of MIP. On the day of closing we initially expected to pay 20 % but we have put the down payment of 30 % to eliminate the PMI as we have accelerated payment so as per the original appraisal the Value of the property was {$520000.00}. The sale price of the house was {$460000.00}. We have issue the check of 30 % hence it was old broker error who later sold the all wrong loan to M & T Bank. 

In case we did not received the refund within XXXX days we like to file the complaint at Consumer Financial Protection Bureau. We have open the ticket and requested this over the phone and send message feature but no one are getting acknowledgement for error online and they have advise us to send the written notice so let us know as soon as you received the letter. 

Discontinuing Monthly Mortgage Insurance Premium Payments : Many homebuyers ask FHA if they can stop paying FHA monthly mortgage insurance premiums with their mortgages. 

FHA insures mortgages so that lenders will be encouraged to make more mortgages available for people. The FHA mortgage insurance agreement is between FHA and the mortgage company, so you must contact your mortgage company and ask them what they require to drop the insurance. Most mortgage companies will want you to have a substantial amount of equity in your home. 

If the periodic ( monthly ) mortgage insurance premiums are paid up for an FHA case before schedule ( i.e., accelerated payments were made and the unpaid principal balance is 78 % or less ), the month and year the last monthly insurance premium is assessed ( final bill date ) can be changed by the servicer or holder of the mortgage. However cancellation of the monthly premium can only be used for active risk-based cases that have a closing date after XXXX XXXX, XXXX and a case number assignment date before XXXX XXXX, XXXX and meet the eligibility requirements described in Mortgagee Letter XXXX ( with Attachment ). 
For mortgages with an FHA case number assignment date on or after XXXX XXXX, XXXX, the FHA insurance can be terminated by the servicer or holder if the mortgage is paid in full before the maturity date. 

When can I remove private mortgage ( PMI ) insurance from my loan? 
updated XXXX/XXXX/XXXXTo remove private mortgage insurance ( PMI ) that you pay on your mortgage loan, you must be up to date with your monthly payments. These rules apply to mortgages closed on or after XXXX XXXX, XXXX. Federal law generally provides two ways for you to remove PMI from your home loan : canceling PMI or PMI termination. 

Request PMI cancellationThe Homeowners Protection Act gives you the right to request that your lender cancel PMI when you have reached the date when the principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home. This date should have been given to you in writing on a PMI disclosure form when you received your mortgage. If you ca n't find the disclosure form, contact your lender. 
You can also make this request earlier if you have made additional payments to reduce the principal balance of your mortgage to 80 percent of the original value of your home. 
There are other important criteria you must meet if you want to cancel PMI on your loan : Termination of PMI at the loan 's midpoint may occur before reaching

Company response to consumer: Closed with explanation