Consumer complaint received 2024-01-30
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: AMERIS BANCORP (MD)

I requested an appraisal of my home with my mortgage company XXXX Ameris Bank ) for the purpose of re-calculating my PMI after receiving correspondence from the mortgage company indicating my condo only needed to appraise for {$540000.00} in order to eliminate PMI. I had purchased the property on XX/XX/XXXX for {$470000.00}. At the time of purchase, Ameris Bank appraised the property at {$500000.00}. Based on that and knowledge that home values in this area have generally increased, it appeared likely that my condo would appraise for/close to the necessary value to eliminate PMI so I took their offer. 

The appraiser came to my property on XX/XX/XXXX and spent approximately XXXX minutes in my home taking photos. On review of the appraisal I received from the mortgage company, they reported the value of my home had dropped to {$430000.00}, which is not only well below the original purchase price of {$470000.00} ( sold XX/XX/XXXX ) but also below the XXXX XXXX XXXX tax assessment of {$500000.00}. There has been no deterioration of my home and, if anything, it has had improvements. As such, I find this assessment inaccurate. Of note, the new appraisal report contains significantly less detail from the appraisal report from the time of purchase ( see attached ). Further, the XXXX reported comparables which are not only located out of my ZIP Code but also out of my city, reporting no other closer comparables were available. On my own review of the XXXX listings, I found XXXX comparable properties within XXXX miles of my property which sold from XX/XX/XXXX to XX/XX/XXXX ( see attached ). The average value per square foot calculates to $ XXXX sq ft, which if used to estimate my value per sq ft comes to {$560000.00} which is not even close to a margin of error of what the appraiser reported. In addition, on the included documents I have highlighted areas of similarities between these properties to ensure they were equivalent comparables. It is difficult to conceive of how the value of my property could have dropped {$65000.00} ( initial appraisal minus new appraisal ) over the past two years given the markets increase, yet that is what the appraiser hired by the mortgage company reported. Prior to the appraisal, I would have qualified for PMI elimination with a principal reduction payment of {$30000.00}. Now, based on the mortgage companys new appraisal, I will not qualify for PMI elimination unless I make a principal reduction payment of {$56000.00}. 

Given all of the I submitted a complaint to XXXX XXXX XXXX XXXX XXXX, XXXX XXXX Companies, and Home Inspectors in the State of Maryland. I was promptly contacted by their executive director and with some discussion he notified me that the appraiser the mortgage company sent to my home was not licensed in the state so he had no power to investigate the matter. He suggested I contact mortgage company about my concerns. 

I then sent a letter to Ameris Bank indicating the above issues and requesting I be allowed to have my own independent appraisal done at my own cost to recalculate the PMI. Their response back ( XX/XX/XXXX ) did not address this concern. They said I could pay them again for a new appraisal. I faxed them another letter requesting they address my actual concerns and request, their response back ( XX/XX/XXXX ) stated I had requested a 'Broker Priced Opinion ' not an a full appraisal and I could restart the whole PMI cancelation process with them again if I wanted. I had never agreed to any such 'BPO. ' I simply originally responded to their letter on how to cancel PMI which described paying {$190.00} for a new valuation.