Consumer complaint received 2019-11-08
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LAKEVIEW LOAN SERVICING, LLC (OH)

To whom it may concern, Summary : I believe that we are suffering collateral damage as a result of our mortgage being sold. The new mortgage servicer, Lakeview Loan Servicing, said they will not allow us to cancel PMI for at least two years. Our original loan company, XXXX XXXX, stated we could cancel in as early as one year. I believe the discrepancy is due to conflicting interpretations of the definition of " Good Payment History '' in relation to the Homeowners Protection Act of 1988. 

Details : In XX/XX/2019, we were working through the loan application process with XXXX XXXX at XXXX XXXX. At the time, she told us that we could remove PMI in as early as a year with an appraisal as long as we've had good payment history and are at 20 % equity. Per our final contract, we are subject to the Homeowners Protection Act of 1988, which has the following definition of good payment history : [ The term good payment history means, with respect to a mortgagor, that the mortgagor has not ( A ) made a mortgage payment that was 60 days or longer past due during the 12-month period beginning 24 months before the later of ( i ) the date on which the mortgage reaches the cancellation date, or ( ii ) the date that the mortgagor submits a request for cancellation under section 4902 ( a ) ( 1 ) of this title ; or ( B ) made a mortgage payment that was 30 days or longer past due during the 12-month period preceding the later of ( i ) the date on which the mortgage reaches the cancellation date, or ( ii ) the date that the mortgagor submits a request for cancellation under section 4902 ( a ) ( 1 ) of this title ] We will achieve " good payment status '' after 12 months according to section B of this definition, which matches the statement made by XXXX XXXX on behalf of XXXX XXXX. 

I submitted an inquiry to Lakeview Loan Servicing on XX/XX/2019 about removing PMI. I did not expect to have it removed at this time, as I knew we did not have 1 year of good payments, but I wanted to verify that the lump sum we put onto our principal balance would be enough to get us to 20 % equity. I received a letter from Lakeview Loan Servicing on XX/XX/2019 ( dated XX/XX/2019 ) stating that we did not meet the LTV requirements to have PMI cancelled. Another representative from that company had confirmed that we were above 20 % equity, so I called Lakeview Loan Servicing on XX/XX/2019 to inquire further. 

I spoke to XXXX, the customer service representative, who told me that ( contrary to the letter we received ) the actual reason the request was denied was because we did not fulfill the " good payment status '' requirement of 2 years. I asked if there was any way we could have the PMI removed after 1 year and she said no. I told her that contradicted what our original loan company said, and she said that we still would need to wait 2 years to remove the PMI. 

I believe that we are entitled to having PMI removed after 12 months of timely payments provided we meet all other requirements per the Homeowners Protection Act of 1988.