Consumer complaint received 2021-04-15
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: FIFTH THIRD FINANCIAL CORPORATION (FL)

Fifth Third Bank Violation of the PMI Cancellation Act - 16 years of Private Mortgage Insurance ( PMI ) payments - PMI Fraud by Fifth Third Bank ( 5/3 ). 

We have been paying PMI on our mortgage for 16 years to the same originator of our home mortgage loan. 5/3 bank is in violation of the Homeowners Protection Act ( HPA ), and has been fraudulently collecting PMI from us for an overly extended amount of time. The extended PMI payments have resulted in an extension of the time it will take us to pay off our mortgage and have increased our interest payments, 5/3 's profits, and has increased our tax liability.

5/3 representatives have continuously and systematically lied to us on multiple occasions about options for dropping PMI, or flat out ignored multiple requests to drop our PMI insurance over the last 6 years.

5/3 Bank has not complied with HPAs disclosure and notification requirements that lenders inform borrowers about their rights. Disclosures include upfront and annual notices regarding when and how borrowers can cancel PMI. We believe 5/3 engaged in an unjust scheme to maximize profit by lying to us, not giving us and following up on the option to request a new appraisal to drop our PMI on our home. On many occasions the response from 5/3 bank to our requests to drop PMI, has been met with only a cursory mention of the option to getting a new appraisal on our home, but 5/3 representatives continually steered us to refinancing, as being our only option to getting our PMI dropped, even though we met all conditions required to get the PMI removed. 

Our PMI insurance was originally due to be automatically dropped by XX/XX/XXXX with 5/3 bank on our original mortgage from XX/XX/XXXX. We have written documentation dating back to XX/XX/XXXX of XXXX requesting that our PMI be dropped. In the XX/XX/XXXX correspondence from XXXX XXXX, she states " In order to remove the PMI we would need to refinance your loan. '' XXXX XXXX XXXX correspondence from this e-mail thread has be attached XXXX, confirmed that she believed that we met the XXXX conditions " I just left you a message regarding your mortgage. I did some digging into home values into your area and I believe your Loan to Value should allow us to drop your Private Mortgage Insurance, which would save you at least {$130.00} a month. '' Weve attached comps of homes sold in our area in XXXX that confirms that the value of our home 's LTV threshold would have been met at XXXX XXXX the date of our original documented request to drop PMI XXXX. Had XXXX followed up with the process of getting a new appraisal, we would have been able to stop PMI payments. 

Instead of giving us complete information and following up on getting a new appraisal on our home, 5/3 continued to send us pre-approved marketing offers to refinance our home. We believe this is a scheme for 5/3 Bank to extend our mortgage and thereby increase their profits. We have already refinanced our home once with 5/3 on XXXX, XXXX. 

Instead of following up on ordering a new appraisal for our home after our numerous requests to remove PMI, 5/3 Bank again sent us a pre-approved refinancing offer which we applied for around XXXX, XXXX. We applied for refinancing purely out of frustration of getting the runaround in our attempts to drop our PMI. We were assured since we've been a customer of 5/3 in good standing since XXXX, and had great credit scores, that we would be approved for the refinance of our home. 5/3 Bank sent us closing documents on XX/XX/XXXX, and reassured us that they were swamped with refinancing applications, and that any day we would be approved. They dragged this refinancing on for over 6 months all the while reassuring us that they were just delayed. Around XX/XX/XXXX after many excuses for the delay, they denied our loan. They have defrauded us out of a {$390.00} application fee, and denied our loan all the while insuring us that they were just back-up in the application process. We've filed a separate case with your CFPB relating to this application fee associated with the refinancing fraud. 

Our monthly PMI payment is {$130.00} a month or {$1700.00} per year. Based on this calculation, we believe that 5/3 has fraudulently collected approximately {$10000.00} ( 6 years of PMI ). This does not include interest paid, or all the time and effort wasted in getting 5/3 to comply with regulations outlined in the Homeowners Protection Act ( PMI Cancellation Act ). 

Below are just a few example of our correspondences asking 5/3 to drop our PMI insurance ( these correspondences have been provided as attachments ) : -- XXXX XXXX XXXX From : Hodgins XXXX XXXX XXXX XXXX : Thu, XX/XX/XXXX at XXXX PM Subject : RE : Fifth Third Mortgage To : XXXX XXXX XXXX XXXX XXXX, XXXX XXXX " Hi XXXX XXXX XXXX order to remove the PMI we would need XXXX refinance your loan. '' This was in response to an email we received from XXXX XXXX : " XXXX, I just left you a message regarding your mortgage. I did some digging into home values into your area and I believe your XXXX to XXXX should allow us to drop your XXXX Mortgage XXXX, which would save you at least {$130.00} a month. I want to get you in touch with our Mortgage XXXX, XXXX XXXX to explore some options. '' -- XXXX XXXX - They sent us a letter acknowledging our request to drop our PMI, but then disappeared on us and did not follow through on getting a new appraisal -- XXXX XXXX, XXXX - We again contacted XXXX about removing our PMI. We received a letter stating our records show that PMI was required on your loan when it was originated. We are unable to cancel your PMI at this time. 

-- XXXX XXXX, XXXX and XX/XX/XXXX - We contacted XXXX XXXX and XXXX XXXX XXXX XXXX, and threatened to file a complaint with CFPB. Shortly afterward, on XX/XX/XXXX, we received a letter from XXXX that somehow magically ( different from every correspondence we've had with XXXX prior ) stated Next Steps for Your PMI Cancellation Request. This was the first time that XXXX followed-up with allowing us to to order a new appraisal for our home. An XXXX XXXX Al XXXX XXXX was sent out to our home shortly thereafter. His appraisal was submitted on XX/XX/XXXX. We are currently waiting for XXXX to drop our PMI. 

For the last 6 years, XXXX made it impossible for us to get our PMI dropped, even though we met the conditions necessary to have our PMI removed. They have egregiously lied, misrepresented or flat out ignored our numerous requests. 

We have spoken to several attorneys about our case and will proceed with a suit if XXXX does not remediate this situation to our satisfaction. We believe that this is not an isolated situation, but a systemic scheme to defraud their customers. 

Attorneys Contacted : Spoke to XXXX XXXX : XXXX : //www.attorneyoffices.org/bank-mortgage-fraud Spoke to XXXX XXXX XXXX XXXX XXXX XXXX XXXX : XXXX If more documentation is needed, we can provide them as we have records of our numerous correspondences with Fifth Third Bank. 

Thank you.