Consumer complaint received 2023-11-24
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC. (NC)

When we purchased our home in XXXX, we were required to take out Private Mortgage Insurance ( PMI ) because we did not put a sufficient amount of money down to equal 20 % of the purchase price. We have now lived in our home for more than 2 years, and the value of the home has increased significantly. As such, my wife and I decided to see if it were possible to get the PMI removed from our mortgage payments. 

On XX/XX/XXXX, I called the customer service number ( XXXX ( XXXX ) XXXX ) for our lender, PENNYMAC, to speak with a representative about having our PMI removed. The representative was very cordial and seemed to believe that it was possible to have the PMI removed based on the significant increase in value of our home. He said we would need to pay {$150.00} for an appraisal and that an appraisal would be scheduled later. I paid the {$150.00} via credit card over the phone and our conversation ended. 

On Thursday XX/XX/XXXX, I received a text message from an appraiser requesting to schedule the appraisal. Here is the conversation between me and the appraiser : XXXX XXXX- Hi ******, this is ******* from XXXX XXXX. I was asked to do an inspection at your home at ********** to remove your mortgage insurance. I was wondering if you'd be available Saturday afternoon at XXXX XXXX  thanks. 

XXXX XXXX- Hi ******, Thank you so much for getting back with me. Unfortunately, we will be out of town this weekend and the following weekend. Would we be able to schedule for Friday, XX/XX/XXXX in the afternoon? 

XXXX XXXX- Are you available Tuesday? 

XXXX XXXX- No I'm likely to be in a jury trial all next week. Sorry! 

XXXX XXXX  - Ok, I'll schedule for XX/XX/XXXX at XXXX. Hopefully the lender won't cancel XXXX XXXX Sounds good! 

I found it odd that the appraiser would have mentioned the lender possibly cancelling the appraisal because of the length of time, but I didn't think anything of it because we weren't cancelling an existing appointment or scheduling that far out but arranging a time that worked with our family 's busy schedule. 

From XX/XX/XXXX, to XX/XX/XXXX, I did not receive any messages from either the appraiser or PENNYMAC regarding the appraisal. From XX/XX/XXXX to XX/XX/XXXX, I spent all of my time cleaning and preparing the house for the appraisal at XXXX XXXX on XX/XX/XXXX. When the appointed time came and went, I reached out to the appraiser to see whether he was still coming. Here is the conversation : XXXX XXXX- Hi *****, just checking to see if we're still on for the appraisal today. Let me know when you can. Thanks! 

XXXX XXXX Hi *****, I'm sorry you weren't notified but your lenders canceled. You can call them back to reschedule. 

XXXXXXXX XXXX - Ok thank you. 

The same afternoon of XX/XX/XXXX, I called the customer service number for PENNYMAC again. I spoke with a representative and asked why the appraisal I had scheduled was cancelled by them. I informed the representative that I had not received any information from PENNYMAC that the appraisal needed to be scheduled within a certain amount of time, and I expressed my anger that it had been cancelled without consulting me. I explained that because we were going to be out of town consecutive weekends, that as an attorney I had been in a jury trial XXXX week and a busy court schedule the following week and that XX/XX/XXXX was the best date for the appraisal because it was a day I had off work, which was why I scheduled the appraisal for that date. The representative could not tell me why the appraisal had been cancelled. She said she would send an email to the appropriate department informing them that I wanted to be contacted about the appraisal cancellation. I asked to be XXXX XXXX on the email, but she said she wouldn't CC me because it was an " intra company email ''. I informed her that if the right individual did call me and I did not answer that they were to leave me a voice message for me to call them back. She said they don't leave voice messages as a PENNYMAC policy because of security reasons, but the fact that I was asking for a voice message may be sufficient permission. We then ended the call. 

As of today, XX/XX/XXXX, I have not received a call, missed or otherwise, from PENNYMAC.

I believe that lenders such as PENNYMAC engage in predatory behavior when customers attempt to cancel PMI based on a few reasons : First, lenders apply a higher percentage of mortgage payments received towards interest on the front end and a smaller percentage toward the principle. This means that those who are required to pay PMI will pay the PMI over a longer period of time creating millions more in additional profits to the banking institution aside from the interest already being paid. 

Second, where housing values increase significantly over shorter periods of time and borrowers, such as myself, attempt to have the PMI removed, the lender will cancel an appraisal ( as seen by our appraiser as a customary practice ) in an attempt to discourage a borrower from rescheduling and getting the PMI removed.

Thank you for considering my complaint. Please reach out to me for mor information.