Consumer complaint received 2023-08-31
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: RoundPoint Mortgage Servicing LLC (CO)

I purchased my first home in XXXX of XXXX. At the time, I did not have a 20 % down payment and knew that PMI was going to be part of the deal. Soon after closing on my mortgage loan, the loan was assigned to XXXXXXXX XXXX  for servicing, and then transferred to Roundpoint Mortgage in XXXX XXXX XXXX. I purchased my home for many reasons, but was something I had wanted to do for many years. It was not an easy process and required many sacrifices along the way, and was especially a challenge due to the market at that particular point in time. I follow the market and knew if I didn't get on board, the opportunity may not present itself for a while. As difficult as it was to secure my home after a grueling search and countless offers, as well as having to offer $ XXXX over asking to finally even be acknowledged - I was still determined to make it work, and with some help of family, I did, and have. 

My house is nothing special, small and in need of many upgrades, many of which I have completed since moving in - but from my understanding, I would be able to have the {$200.00} PMI payment I was making on top of my mortgage payment, removed at any one of several times during the course of my loan - once the conditions specific to that occurrence were met. I recently made my third attempt to request the removal of PMI and was informed by Roundpoint that I was not qualified. Before I get to this particular instance, its important to understand the ongoing issues that I've dealt with relating to this one. 

The first request to remove PMI was made at the end of XXXX to XXXX XXXX  - my original loan servicer, and was made because the house had some major issues that I didn't expect until after I moved in which required a significant investment but improved the home significantly. I have read the PMI removal requirements put in place by XXXX and also Roundpoint, and the language is somewhat ambiguous as to when the earliest date might be when a request might be granted to remove PMI. My understanding was that certain circumstances regarding the assessment of the property could qualify for PMI removal at any point, while others had a minimum time frame in place before it could be considered. Either way, my first request was ignored and so I attributed it to maybe being too soon. The second request I made was also to XXXXXXXX XXXX  and was made on XX/XX/XXXX. I received a response from XXXX regarding my request on XX/XX/XXXX requesting a list of the improvements made since I took ownership. Even though this was included in my XX/XX/XXXX second attempt original request, I was just relieved that I received a response and that they were processing my request so I provided them what they asked for within two weeks or so. I didn't receive anything from them after that, but I did receive a notification in XXXX of XXXX that my loan was being transferred to Roundpoint Mortgage Servicing but that I would not notice any changes to the terms of my loan or how it was managed. When I called XXXX to inquire about my PMI removal request that was started in XXXX- they told me to expect my new servicer to reach out and finish it up- but this never happened. Roundpoint claims XXXX never provided them anything, XXXX claims they did - I decided to move on and start a new request in XXXX of this year. I sent the required documents and forms to Roundpoint on XX/XX/XXXX and received a response on XX/XX/XXXX stating that I did not qualify due to having a 30 day late payment on my account- which I know for a fact has never happened because I have been trying so hard to remove PMI and knew that a late payment would disqualify me for a period of time. 

It is also important to understand this is not the only issue I have had with Roundpoint and the transfer of servicing to them. Immediately after my loan was transferred, I noticed that two ( 2 ) PMI payments totaling {$400.00} were deducted from my escrow account in XX/XX/XXXX- the month they took over servicing. A call with a representative informed me that this was because XXXX didn't take it out the month before- a call to XXXX and some statements provided ( I couldn't log in to my account with XXXX anymore at this point ) proved otherwise. I called Roundpoint back and was told to send proof to an email address ( the only one I could find and it took an incredible amount of searching to find any contact like this ). This request was also ignored and dismissed when a follow-up call was placed. I finally gathered the documents, sent them via traditional postal mail, and received a response stating that the deductions were correct - that XXXX takes out PMI in arrears, where Roundpoint takes it in advance. Again, not a big deal, but I was not notified and told that nothing would be affected during the transition. This deficit in my escrow account snowballed and in XXXX when the escrow reconciliation occurred, created - along with increased property taxes in XXXX, and increasing insurance premiums - a new monthly mortgage payment of {$1800.00}- which is {$200.00} more than what I signed up for less than 2 years prior. This {$200.00} PMI payment, when removed, basically puts me back to where I planned to be! I understand that there are certain costs associated with my loan that will need to increase over time, but less than 2 years in to a 30 year mortgage and not only is my servicer the problem, but they are unwilling to help by looking at where other costs can be cut. This house was built in XXXX and being XXXX XXXX XXXX needs a lot of work - a significant amount of which I've done since taking ownership but also much more- including the asbestos siding which is in desperate need of replacement - and the walls need to be insulated at the same time to mitigate the $ XXXX natural gas bills I have started to receive during the winter months. Not only do I and my property meet the qualifications of PMI removal today- and for months leading up to this, just by improvements alone - or by the sheer increased property value alone- but any money saved on my mortgage loan will no doubt just be put back into making my home more updated, sustainable, and efficient. 

I was unfortunately laid off at the beginning of XXXX, from the job I had for 5 years. I was encouraged by my former employer to file for unemployment benefits- which I did, but have yet to see a dime of ( Colorado Department of Labor is apparently backlogged, and transitioning to an updated software program so this is a blanket problem ). I have been told that I should expect payment for basically 3 months 'any day now '. So XXXX was the first month I paid my mortgage outside of the grace period window. I realized I would incur a late fee, and when I didn't receive money from unemployment by the XXXX, my parents stepped in and I still made the payment on time. When I received the letter on XX/XX/XXXX from Roundpoint stating I had a 30 day late payment, this was the instance I could think being close, but still it didn't make sense. I panicked and checked to make sure the payment cleared -which it did. The XXXX of XXXX was a Sunday, so I wondered if this was the issue, but after waiting and checking my credit reports, Roundpoint reported the payments for XXXX as 'on time ' ( because it was ). I am including the payment history for Roundpoint account from my three credit reports which shows all payments being made on time. 

Lastly, when my loan was transferred to Roundpoint, I immediately did some research and after reading through reviews and complaints, and history of this company- it became clear that there are some unethical business practices that take place here. This is the reason I decided to come to CFPB at this point instead of provide a response to Roundpoint - I would like documentation that this is what has been done- as I am concerned that without third party intervention, they would easily go back to my credit reports and adjust them to fit their narrative. 

I am including all the PMI request documents for my last 2 attempts - the most recent made directly with Roundpoint, and the prior one that may or may not have been provided to Roundpoint from XXXX during the transfer. Also attached are the payment history sections for my mortgage with Roundpoint showing all payments reported on time ( which they have been ). The most recent denial letter from Roundpoint is also attached. I have also attached the documents I provided when asking for clarification on why ( 2 ) PMI payments were deducted from escrow in the month they took over servicing my loan and to which it took several attempts and many months to receive a reply- I should have been notified this change was taking place without even having to ask in my opinion, especially since it impacted my escrow reconciliation and monthly payments to the extent it did. This company has no business managing anyone 's loan. I am prepared to pay for any appraisal or assessment necessary to move things along, which they are also aware of.