Consumer complaint received 2017-08-28
Company: LoanCare, LLC
State: MN
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
I have been trying to have the PMI on my mortgage removed. 

On XXXX XXXX, XXXX, I submitted an initial request for removal of the PMI on my mortgage through LoanCare 's website in accordance with the instructions I was provided by their customer service representative on the phone. I made the request at this time because I had recently paid down my loan to less than 80 % of the principal ( through extra payments made on the account for the purpose of getting out of PMI XXXX, I had been making timely payments since XXXX XXXX ( over 5 years ), and I had never been late in making a payment. In addition, it should be noted that I have near perfect credit and that my house has appreciated in value by at least 40 % since purchase ( although I understand that is not relevant for the 80 % analysis ) based on neighborhood sales. 

On XXXX XXXX, XXXX, I called LoanCare to determine what the status of my request was. Their representative indicated at that time that the website had not been working ( which seems pretty suspicious given the later course of events ) so they had not received that request and that I should submit a further request through their customer service email. I did so. I received an email back at that time indicated that I would receive a response on my request within 5 business days. 

5 business days came and went and I heard nothing back. I called LoanCare again around XXXX XXXX, XXXX ( date approximate ) to see when I could expect a response on my request. They indicated at that time that it would be decisioned by XXXX XXXX, XXXX. This was unacceptable given that I submitted this response back in XXXX and that I would be charged for the PMI in the meantime. I waited until the end of the month of XXXX to see if they would act on this in a timely manner, but they did not. 

I am charged by LoanCare for PMI on the XXXX of each month, so I called LoanCare again on XXXX XXXX, XXXX, as well as contacted them by email to see if there was a response on my request so that I could avoid that PMI charge. I received emails back again indicating that I would have a response within 5 business days. They indicated that they would have a response on XXXX XXXX, XXXX on the phone. 

Due to a family emergency, I was not able to call the week of XXXX XXXX, XXXX to see if they had decisioned this request yet. I called again on XXXX XXXX, XXXX to see if they finally had a response to my request to remove the PMI from my account. They indicated that it was still pending, despite the previous assurances that it would be decided by XXXX XXXX, XXXX. 

It should be noted that all this time they have been charging me for my PMI ( approx. {$230.00} per month ). 

I called again today, XXXX XXXX, XXXX and still they indicated that there is not a decision yet. It has now been over 2 months since my initial request and still nothing other than canned emails and speaking with customer service representatives that have no power. If they would at least respond with how much I need to pay to remove the PMI without this process, I would do that and have the money to do that had they responded in a timely manner. However, since it has taken this long to even get a response, I am hesitant to tie up all of my capital paying down a loan when they are still going to be charging me for the PMI.

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