Consumer complaint received 2019-05-29
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: AG AH LLC (TN)

In early XX/XX/XXXXI called my loan servicing company WEI Mortgage/ Arc Home Loans and asked if I could pay for an appraisal and have my loan reviewed to remove PMI. At that time I advised them that per the amortization schedule, I knew I would not show a low enough principal balance to remove it, but with a new appraisal and 3 years of appreciation I felt that I would have the equity to do so. Further, I could pay the difference if there was one. I advised that I also worked in the mortgage industry and had a good knowledge of the current fair market values. I asked they place all of these notes in my file. They advised I'd have to email them at the customer service email address. 

On XX/XX/XXXX, I submitted a detailed request in writing to obtain a new appraisal to remove pmi from my conventional mortgage loan. I received an email to allow 5 business days to review and did not hear any communication until 30 days later in letter form, that stated simply that I needed to pay for an appraisal and that my amortized principal balance to remove PMI had not yet been reached. 

I called in with the letter in hand and asked a customer service representative if I could pay for the appraisal over the phone to expedite the process. This was on XX/XX/XXXX. They advised I could and I paid the {$420.00} amount specified in the letter. After a couple of weeks around XX/XX/XXXX, I'd heard no response, and I called back to ask for a status update. I was advised that WEI mortgage/ ArcHome Loans had misapplied my appraisal payment to principal instead of the appraisal. I was never advised of this and had I not called in would not have known otherwise. I requested they correct their error and was advised that it had been corrected and that I would hear from the pmi department directly to speak to me regarding setting up the appraisal. On XX/XX/XXXX after no response from WEI Mortgage/Arc Home Loans I called again and spoke to another representative inquiring why no one had reached out to me to schedule an appraisal. She advised that her notes indicated the appraisal amount was short {$150.00}. After discussion I advised her that I would pay another {$150.00} that day to have the appraisal ordered. 

Now totaling {$570.00} that I had paid for an appraisal ( above market rate, by the way ) I waited almost another month until XX/XX/XXXX when the appraisal was performed. Prior the appraiser coming out, WEI Mortgage/Arc Home Loans appraisal management services called me to schedule it. I inquired at that time about where the appraiser would be coming from and if they would be local. We are in one of the fastest growing communities in our City and I wanted someone within the city or at least the same county to perform the appraisal. They advised the appraiser had to be located within 10 miles of my residence per their standards. Once the appraiser arrived, I inquired about where his office was located. He specified it was located in another city and another county greater than 25 miles from my house. I inquired about which local neighborhood he lived in. He said that he did not live in my city, in fact, he lived in another state and flew in during the week to work appraisals and then back home on the weekends. For the record, I live in XXXX, TN and the appraiser lived in Wisconsin. He stated he'd never been to my neighborhood. He performed the appraisal and left. 

I received the appraisal on XX/XX/XXXX. The appraisal was 370 square feet short, he failed to include our entire 3rd floor and thus all of the comparables that he used, were short on square footage and value. About a week before this I'd been contacted by WEI Mortgage/Arc Home Loans again asking for an additional payment for the appraisal because they said I lived in a condo. I do not live in a condo and inquired at that time what the home appraised for. I was told {$450000.00} which was {$62000.00} less than the same exact house that just sold one block away from me in XXXX  of XXXX. I inquired what I could do to dispute and was advised when I received the written report to send in 5 comparables to substantiate my claim of value. On XX/XX/XXXX I emailed 5 comparables + several additional homes in the neighborhood, all well above {$500000.00}, on comparable corner lots, with comparable construction, ( some in fact the same floor plan and builder ). I also included the original appraisal done from the purchase of my home showing the proper square footage of 2277 square feet so there would be no dispute. 

After hearing nothing in early XXXX my wife called in again and no notes could be found of my resubmission of the appraisal dispute. After spending more than an hour on the phone and on hold they said they would have a customer service rep call her back. 

On XX/XX/XXXX the pmi department reached out to me to confirm 5 comparables that I had submitted in. It appears they had found the email sent on XX/XX/XXXX and said they would submit a dispute. I was told I would hear in 10 business days. In fact, I did not hear anything until XX/XX/XXXX. I received a revised appraisal that did have an increased adjusted value, however, they still maintained an improper square footage and that I lived in a condo. The reason that is important is because I needed an LTV of 75 % to remove the pmi and they quoted me at 75.9 % LTV. However, with the proper square footage and the appraisers price per sq ft, I would have had 75 % or less LTV. Futher the same exact house that now sold for {$27000.00} more than the value I was given was disqualified as a comparable because the appraiser did not have an understanding of what an HPR is. After meeting with my real estate attorney who recorded my deed and closed my loan, he also confirmed I did not live in a condo and that within an HPR you own the ground above and below you. None of this necessarily means a lot unless you have an appraiser that doesn't understand titling of property and it affects his ability to use proper comparables. I have called the PMI department multiple times but no one will answer or call me back. My attorney has advised that I first reach out to the CFPB to notify them of a possibly deceptive practice from WEI Mortgage/ Arc Home Loans who is being evasive in releasing the pmi portion of my servicing. I am contacting them again to note that even on the revised appraisal they sent me, the appraiser noted they made clerical error in sq ft., and then they had another addition error again that is resulting in the wrong sq ft and showing my value as less. What has never been addressed with me is why am I working with an appraiser from another city and county who resides in another state?