Consumer complaint received 2024-01-22
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: Onity Group Inc. (VA)

Since XXXX of XXXX, I have been attempting to remove PMI from my mortgage. I feel like PHH has intentionally made the process as burdensome and time-intensive as possible to force customers to give up, and/or to force as many interactions as possible to create opportunities for pushing refinancing. 

On XX/XX/XXXX, I went to the PHH mortal to find out how to apply for PMI removal, which should be a very simple process. For no justifiable reason I can discern, PHH does not allow this to be done online. The website directs customers to call into their office and navigate a labyrinthian phone system. When I was finally able to speak with someone, they told me that they could not complete the process over the phone- it all must be done by mail. 

On or around XX/XX/XXXX, I finally received a letter from PHH directing me to physically mail them a check to start the appraisal process. Again, this seems absurd, and I can think of no legitimate reason why they could not or would not accept a credit card payment. Upon receiving the letter, I had XXXX questions which I think were clear and relatively simple. namely : XXXX. The letter I received from you states that if the appraisal shows that my XXXX is still above 80 %, I may ( bolded in original message to emphasize ) be able to complete a principal curtailment to the required XXXX amount. What determines whether I am able to complete a curtailment? 

XXXX. Is it possible to submit and pay for the Appraisal Request Form digitally? 

XXXX. How long is the appraisal good for? 

I received an automated response telling me I would receive an answer within 10 days. I did not, and sent additional follow-up emails. I received a response on XX/XX/XXXX. The response did not answer my questions. I exchanged a series of emails with PHH in XXXX. I am not convinced that an actual human ever read my emails, since the answers did not address my questions. I tried to explain multiple times, yet I could not make the person/robot I was speaking to understand my questions. 

I became so frustrated with the process that I gave. Furthermore, more than 30 days had passed since I received the first PMI-related correspondence by mail, which PHH tells me means I must call in and start everything over from scratch. 

On XX/XX/XXXX, I started the process again. I called in and was told I would receive a letter by mail in the next 10 days. I did not receive this until XXXX. When I received it, I mailed in my check and PMI request form. 

In XXXX, someone called me to schedule a time to come to my home to take photos for the appraisal. In mid XXXX, I received a letter telling me that my home did not appraise high enough to remove PMI. And that is all it said. It didn't say how much my home appraised for, or the difference between my appraisal value and the value needed to complete PMI. I did not receive an appraisal report either. I was frankly flabbergasted that any and all useful information was absent from the letter I received. 

I called PHH to complain about this. I requested the appraisal report, and I told the representative that I felt the appraisal was inaccurate and wanted to contest it. I received a written response on XX/XX/XXXX saying they had researched the appraisal and believed no error occurred. I think this is a lie. For one, at this point I had not told anyone at PHH why I felt the appraisal was inaccurate, so I am unsure how they could have possibly researched and refuted my concerns. Secondly, the written response showed the appraisal, and even a brief overview of the appraisal should have made it apparent something was very wrong. 

The written response told me I could mail XXXX with proof if I felt the appraisal was inaccurate. I did so on XX/XX/XXXX. I explained why I felt the appraisal was wrong. Text from the email is below : " I am very disturbed by this appraisal report, which indicates a great lack of care. The letter says, " Based on our research, no error occurred ''. While the report states that this issue was researched, given that the appraisal report gets basic facts about the home wrong, it's clear that no research was actually done. The report also seems to be missing pages, and is blurry and difficult to read. 

The first and most glaring error is that the report doesn't accurately reflect the number of bedrooms and rooms in my home. The report lists XXXX bedrooms, whereas my home has XXXX. While one bedroom is in a basement, it meets all of the requirements to be counted as a bedroom per Virginia XXXX XXXX. 

The report also claims there are 5 rooms in the house. I am not sure what is counted as " a room '' for the purposes of this appraisal, but I don't see how 5 could be an option. There are 3 bedrooms, 1.5 baths, a living room, a kitchen with dining area, and a rumpus room. Plus a sizable laundry/storage room. 

The appraisal lists all of the homes as condition XXXX. My home was completely remodeled in XXXX, which included brand new : floors and carpet throughout the entire home, roof, all doors in the home, paint on all walls and ceilings, all major appliances, light fixtures/fans throughout, sinks//vanities/toilets in the bathrooms and a new tub in the full bath. For these reasons, my property is clearly XXXX. It seems the appraiser couldn't be bothered to consider the conditions of my home relative to the comps and just wrote XXXX for all. Please view the attached images of my home vs those of the comp on XXXX XXXX. It is absurd to claim these homes are in the same condition. 

This appraisal also neglects to mention that my home sits on 2 lots, both of which are part of my mortgage. So the lot SQ ft should be double what is listed.

I have multiple issues with the comps used, which I can submit in a detailed report if necessary, although I hope the glaring issues I have already mentioned will be sufficient to show that the current appraisal is inappropriate. For now, I will give just one example : The closest home I have found to mine when viewing sold homes in my area is at XXXXXXXX XXXX XXXX XXXX. This home is right around the corner from me and sold for {$290000.00} just in XXXX of XXXX. This home is all on one floor and it has a more private back yard, which are advantages. However, mine has nearly XXXX additional finished square feet and all fixtures, floors, cabinets, etc. are newer in my home. I find it hard to believe that my home is worth {$45000.00} dollars less than this one. " Although I can not post the pictures here, I strongly encourage you to look up XXXX XXXX XXXX, XXXX XXXX, VA and XXXX XXXX XXXX XXXX, XXXX XXXX, VA on XXXX. Per PHH 's appraisal, these homes are of equivalent condition. The home on XXXX XXXX is a dilapidated shack where the roof is literally caving in. Frankly, it looks like a crack den. While my home was completely remodeled with new everything in the summer of XXXX. 

Since XX/XX/XXXX, I have sent XXXX follow-up emails. I have yet to receive a response of any kind. Follow up emails are below : " Another more recent and more appropriate comp : XXXX XXXX XXXX This XXXX XXXX townhouse sold on XX/XX/XXXX for {$240000.00}, which is very close to the appraised value of my home. But it falls short in multiple areas and I think it's clear my home is worth significantly more : XXXX. XXXX less square footage. 
XXXX. No fenced in yard, and yard is much smaller and on a steep incline. 
XXXX. XXXX XXXX XXXX. 
XXXX. Furnishings, floors, ceilings, roof, etc. are significantly older and more dated, although still in decent condition. 
XXXX. Worse neighborhood. This actually adjoins my childhood home, and that neighborhood is known for being the worst and most dangerous in town. 
XXXX. Middle townhouse vs corner duplex for my home. 
" " imagine you are on break for XXXX. I got a letter today saying PHH feels there is no error and stating that you feel the issue has been resolved. I believe the letter was sent before you received my email. I just wanted to check in and make sure you are still researching this issue. 

I have also received a more legible copy of the appraisal report and wanted to let you know that my primary bedroom on the top level is labeled " basement '' and my bedroom basement is labeled " main bedroom ''. 

I have also yet to receive any justification or explanation for the appraisal price of my home. I have the report, which lists " similar '' homes, even though there are many sold homes in my area that are far more similar to mine and much more recent than what is listed here. And then I have a " value '' summary, shown below, that lists a few features of my home. 

Shouldn't an appraisal have more than this? Something explaining how the value of my home is determined based on the homes compared to? " Please note that the password for the attached appraisal is XXXX.