Consumer complaint received 2016-01-18
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Ditech Financial LLC (NC)

My wife and I originated first home loan with XXXX XX/XX/XXXX after we were married. When the loan was originated the company offered XXXX % financing with the stipulation that we pay Preventative Mortgage Insurance ( PMI ). We were told by the lender that the PMI payment could be eliminated from the payment once the loan was paid to XXXX % loan to value ( LTV ). Additionally, the XXXX statements we received each month had a statement on the back, stating that we could request in writing to have the PMI removed when the balance was paid down to 80 % or the PMI would be automatically removed once the loan reached XXXX % LTV. During the life of this loan, it has been sold numerous times to different companies and is currently with Ditech. Around XX/XX/XXXX, our estimates have that the loan was at or below XXXX %. We called and requested that the PMI be removed and the customer service representative stated that we needed to do so in writing, and so we did. They declined our request due to a late fee that had been charged to our account in the amount of {$10.00}. We explained that we have never been late with a payment and that the payment is automatically drafted out of our account. After researching, during one of the transitions of financial companies owning our mortgage, they did not take out the payment on the due date and caused us to be late. They agreed that this is what happened and agreed to remove the late fee, but to this date the late fee has not been removed. After the late fee issue was resolved, they stated that we would need to pay $ XXXX-XXXX for a new appraisal on the property to determine if the LTV was at or below 80 %. We decided not to incur the expense and wait until the the LTV to reach XXXX % and just fall off. Around XX/XX/XXXX we started calling to inquire about the PMI and the removal of the late fee. We were sure the LTV was well below XXXX %, but they were adamant that I provide the request in writing. The written request was sent XX/XX/XXXX. They responded that my PMI would not be removed until XX/XX/XXXX as their records show that is when my LTV would be at or below XXXX %. After numerous calls, I finally reached XXXX who was the agent on my account. We had a discussion concerning these numbers : Origination amount {$68000.00}, current payoff as of XXXX/XXXX/XXXX {$50000.00} ( round up to XXXX to account for late fees and anything else they come up with ) and the formula of orig / payoff = XXXX % LTV. Once he realized that I was below the XXXX % threshold he changed his tune and stated that they could n't remove PMI until XX/XX/XXXX because that was the date on the original amortization schedule for us to pay the amount down to XXXX %. I responded that this was never disclosed to us in any fashion and further we were told the PMI would be removed once the LTV was at XXXX %. He acknowledged the LTV was below XXXX %, but that he was unable to remove the PMI without an appraisal at our expense. 
I 'm requesting that they research my account and reimburse me the additional paid PMI that I paid while the XXXX was at XXXX %. I also request that they remove the PMI from my payment immediately. This practice is unethical and misleading. My research has concluded this company has thousands of complaints against them and I 'm unsure how they qualified for HARP funds and the bailout with such unsavory business practices. 

Thank you, XXXX XXXX