Consumer complaint received 2024-06-20
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: United Shore Financial Services, LLC (UT)

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Subject : PMI removal Loan # Good afternoon, I am looking to see the status of removing PMI from my loan. An agent of yours confirmed receipt of my certified mail request for removal. 

Sent : XXXX XXXX XXXX XXXX XXXX XXXX To : Subject : RE : PMI removal Loan # Classification : Confidential Dear Customer : Please be advised that we are unable to locate your account with the information provided. So that we may further assist with your inquiry, please provide the below information : Full name ( XXXX ) on loan Property address Full loan number Phone number associated with account Email address associated with account Sent : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Subject : RE : PMI removal Loan # Full name ( XXXX ) on loan Property address XXXX Full loan number - XXXX Phone number associated with account XXXX Email address associated with account XXXX Sent : XXXX XXXX XXXX XXXX XXXX XXXX To : XXXX XXXX XXXX Subject : RE : PMI removal Loan # Hi, Are there any updates? 

From XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX   Subject : RE : PMI removal Loan # Classification : Confidential Dear Customer : We received your request for information on how to remove PMI. Below are details on the current status of your loan along with instructions if you wish to proceed with removing your PMI. 

In order to remove PMI, the Loan-to-value ( LTV ) of your loan must satisfy investor and state requirements, if applicable. The LTV is found by taking the principal balance of a loan and dividing by the Original Value. The Original Value is defined as the lesser value of the purchase price and the original appraised value. In the case of a refinance the appraised value will be used and, in the event there was no appraisal completed, the value given by the lender at closing will be used. 

Principal Balance : {$460000.00} Purchase Price : {$520000.00} Original Appraised Value : {$530000.00} First Payment Date : XX/XX/XXXX Currently your XXXX is 88.60 %. Additionally, and your loan is seasoned less than XXXX years. The LTV must be at 80.00 % or less to qualify for PMI removal based on the Original Value of your loan, via paying down the principal balance of your loan.

If you wish to proceed with removal of PMI, you have the following options available : Original Value Removal Option Under the HomeOwners Protection Act, you may pursue PMI cancellation based on the Original Value of the property determined at closing. You can make a pay-down towards the principal balance of your loan to reach the required 80.00 %. As of today, the required amount needed to reach the required 80.0 % for PMI removal is {$45000.00}. 


If you wish to proceed with the pay down option, please mail a check payable to United Wholesale Mortgage in the amount of {$45000.00} along with your request for PMI removal to : United Wholesale Mortgage XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX **PLEASE BE ADVISED, IN AN EFFORT TO BETTER ASSIST YOU AT THIS TIME, YOU CAN ALSO MAKE YOUR PAY DOWN PAYMENT ( XXXX ) VIA WIRE. PLEASE SEE BELOW FOR THE WIRING INSTRUCTIONS. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ( Your XXXX digit loan number ) Address : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  After wiring please send email advising of wired funds. 

Current Value Removal Option Per PMI guidelines, a new appraisal can not be performed to pursue PMI removal based on Current Value at this time. To be eligible to have an appraisal performed your loan must be XXXX years seasoned from the date of the XXXX payment, unless substantial structural improvements have been performed on the property after loan closing. If you believe you have performed substantial improvements to the property please see the below. Otherwise, following your XX/XX/XXXX payment you will be eligible for this appraisal option. Please note that if you have completed a refinance of your original loan the XXXX year requirement resets to the XXXX payment date of your refinanced loan. 

Please note that all appraisals must be ordered through our offices and are at the expense of the property owner. Per your loans investor requirements, appraisals for PMI removal purposes must be ordered through an unbiased third-party appraisal company approved by the servicer. In order to make certain that we are in compliance with investor requirements, only appraisals ordered through our offices will be acceptable for PMI removal purposes. Please do not send us an appraisal report that was ordered outside of our offices as we will not be able to accept it for PMI removal purposes. We can not take into account local market trends, tax assessments or home value websites as evidence to order an appraisal or to change the LTV.

If you have completed substantial STRUCTURAL improvements ( i.e. an addition put on the property or other combined substantial improvements ), please send specifics including what improvements were made, materials used and costs excluding labor. We are requesting this information so we can determine if you are eligible to receive the pre-2 year appraisal information. Loans that are granted the early appraisal, due to approved substantial STRUCTURAL improvements, will only require an 80.00 % LTV for PMI removal eligibility. Loans that are between 2-5 years will need to show a LTV of 75.00 % or 25.00 % equity from an appraisal. If the improvements do not meet the requirements, then you must wait two years to have an appraisal done. 

With any appraisal, it is possible that the value of the property in question may show an increase in value, but also may in fact show a decrease in value.

What are substantial structural improvements? 
A substantial structural improvement is typically renovations that substantially improve marketability and substantially extend the useful life of the property. This can be a replacement of a major component ( i.e. kitchen renovations replacing cabinet and countertops or bathroom renovation replacing bathroom tile or bathtub ) or significant structural alteration to the property ( i.e. relocating walls, adding additional living space, finishing a basement, garage, deck, or in-ground pool. 
What are not structural improvements?

Cosmetic improvements are not considered structural improvements and will not affect the property value as much as structural improvements. Repairs that are made to keep the property maintained and fully functional are not considered improvements. Cosmetic improvements include : new paint, new siding, a new roof, new carpeting, new flooring, landscaping, new windows, new light fixtures, new appliances or a new heating/air conditioning unit.

If you believe that you may be eligible for a pre-2-year appraisal, please email or mail details of the improvements preformed ( in the below/attached format ) and if possible include proof of the cost of improvements ( i.e. receipts or work orders ) in order for us to determine your eligibility. 

Improvement Description Associated Cost Improvement Completion Date Inground pool {$70000.00} XX/XX/XXXX Finished backyard/lounge area {$25000.00} XX/XX/XXXX Regardless of the option selected, in addition to the requirements stated above, you must also maintain a good payment history. A good payment history is defined as no payments made XXXX or more days late in the last 12 months and no payments made XXXX or more days late in the last 24 months. 

Please be advised that the information contained in this letter is only valid for XXXX ( XXXX ) calendar days, assuming the loan remains current. Following expiration of the XXXX period, a new request and subsequent review of the loan will be required. 

Please let us know if you have any further questions or if you would like to pursue either of the following options. 

Thank you and have a great day, PMI/MIP Administrator-XXXX XXXX Insurance Department XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX   Subject : RE : PMI removal Loan # Thank you for the response. Please see the below, including the addition of an inground pool.