Consumer complaint received 2017-05-04
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LoanCare, LLC (MD)

My wife and  I have an FHA mortgage that was transferred to Loancare  in  XXXX   XXXX . Our loan originated on  XXXX   XXXX ,  XXXX , and our first mortgage payment was due on  XXXX   XXXX ,  XXXX . The purchase price was {$190000.00}. We only put 3.5 % down, so FHA mortgage insurance was included in the loan. The amount per month has varied slightly over time, but on our most recent payments the amount paid for mortgage insurance has been {$160.00}. On  XXXX   XXXX ,  XXXX , we made ou r 60th  payment, an early payment for the installment that was due on  XXXX   XXXX ,  XXXX . We have never made a late payment on our mortgage.     Through the course of our mortgage payments, we have consistently made additional principal payments, with the goal of being below 78 %  LTV at the time we made our 60th payment. After our 60th  payment was processed, our principal balance as shown on th e Loancare website, is {$150000.00}, which equates to a LTV o f 77.97 %. Our loan was closed in  XXXX   XXXX , well prior to the rule changes that went into effect in  XXXX   XXXX  regarding when FHA mortgage insurance can be dropped. So we were grandfathered into the old rules. We have had our loan for 5 years, we have ma de 60 payments on the loan on which mortgage insurance was part of the payment, we have a LTV under 78 %, and we have notified Loancare in writin g that we have met all requirements and that the FHA mortgage insurance should be dropped. I emailed my notice that the FHA mortgage insurance requirements had been met and mortgage insurance should be dropped, on the morning of  XXXX   XXXX   XXXX , the day after m y 60th payment that dropped the LTV  below 78 %. I received an acknowledgement email in response, which includ ed a notice that I should expect a response within 5  business days. But it has now been over a month ( 31 days and counting ) and we have not received any response of any kind from Loancare other than  XXXX  auto-responses acknowledging receipt of our email.     I have sent emails each of the last 2 days days that have not been answered. The second  one r eceived an auto-reponse identical to the first  one that was received. Both my wife and I have also called them several times over the last month, but have received unhelpful service with different answers each time as to when a response can be exp ected. They have repeated time and again that a response can be expected within  10-20 business days, but when we point out in recent calls that it has now been well over 20 business days, t hey have no answer to that, and can not tell me what is going on. We mad e our 60th mortgage payment very early ( a full 4 we eks before the  XXXX   XXXX  due date ) and notified  Loancare in writing the very next day, in order to give time for any kink s to be worked out related to our request and for us to be sent an updated bill showing a lower amount with no mortgage insurance due, prior to our next payment due date on  XXXX   XXXX . But now a full month has passed since our request, nothing has been done, and  XXXX   XXXX  is fast approaching. We have met all requirements as laid out by the FHA and HUD, and have waited more than 30 days with no response or action on removing the mortgage insurance as I understand is required by law. The mortgage insurance needs to be removed, and the billing amount for our  XXXX   XXXX  payment due needs to be updated to reflect that, immediately.