Consumer complaint received 2016-05-25
Product: Mortgage — Conventional fixed mortgage
Issue: Settlement process and costs — 
Company: CITIBANK, N.A. (TX)

On XXXX XXXX, XXXX, I contacted CitiMortgage and spoke with a customer service agent to collect information regarding the elimination of PMI from our home mortgage. I spoke with a young lady who was extremely thorough and seemed genuinely interested in helping us. I explained to the agent that my wife and I had recently retired and we were adjusting to retirement, especially with our finances. The young lady provided me with the following information, with absolute certainty, regarding our mortgage : 1. In order for us to qualify for the removal of PMI from our mortgage, our loan to value must meet the requirement of being 78 % or lower. 
2. At the time of the conversation, our LTV was 94 %. 
3. In order to meet 78 %, our home would need to appraise for {$390000.00}. 
4. If our home appraised for at least {$390000.00}, that the PMI would ( not could, or possibly could ) be dropped fro : ; XXXX our monthly mortgage. 
5. We would also receive a refund from the insurers for any monies that had been provided for pre-payment of PMI that was presently being held. 
6. By meeting the appraisal value of {$390000.00}, our monthly mortgage payment would be lowered by the amount of {$330.00}. 
She commented, " yes, you are correct. All I need to do is send you an appraisal consent form. You complete the form and fax it to the number provided. '' There was never any mention of additional requirements that had to be met for either Citimortgage or the underwriters. 

The appraisal was ordered, performed, and when returned, the home appraised for {$460000.00}. I immediately submitted the required paperwork and the appraisal. 

I later received a letter of denial from Citimortgage explaining that we did not qualify for the elimination of PMI. The letter contained completely different financial data and information from what we were provided by the customer service agent during my phone conversation of XXXX XXXX. The letter further stated that our LTV ratio was 79.25 % and the LTV ratio must be 75 %, instead of the 78 % that was guaranteed by the agent and that they remove the PMI if I paid them {$19000.00}. 

On Friday, XXXX XXXX, I spoke with Citi customer service agents and supervisors in regards to my request in XXXX XXXX to drop PMI, I again expressed my concern regarding the discrepancy between my current LTV of 79.1 % and Citi 's records that indicate an LTV of 94 %. After some discussion, I was finally informed that the 94 % LTV was based on the original appraisal performed in XXXX, not the appraisal that was ordered by Citi for refinance purposes, an appraisal that came in at {$460000.00}. 

At this point, I asked why I was required to pay for another appraisal if it was not to be used to calculate the current LTV. I was told that the new appraisal was requested only to confirm that the current value of the home had not declined or was still acceptable. 

In XXXX of XXXX, I requested that Citi Customer service agents review the audio recording of the conversation I had with the agent who gave me the information that we would definitely be able to remove the PMI if the new appraisal resulted with an LTV below 80 %. Thus far, I have not seen nor have I been informed by anyone at CitiMortgage that this recording/conversation was ever examined. 

I believe that their tactics were dishonest, unethical, and misleading. I was misled to believe that the new appraisal, if high enough, would -- without question -- allow me to eliminate the PMI from my mortgage. I asked why I had to pay for a second appraisal if it was not going to be used to determine LTV and was informed that it was to make sure that the home had not declined in value or was still acceptable. 

I was given conflicting financial information, ordered to pay for an appraisal that was never to be used in calculating LTV, but rather to satisfy Citi 's need of assurance regarding our home 's condition.