Consumer complaint received 2017-05-02
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: BB&T CORPORATION (TX)

XXXX   XXXX   XXXX    : Through guidance from BBT and before we purchased our home,  BBT ' s representative/mortgage lender communicated to us by phone and in an email that we could remove the PMI when our equity in the home was at 20 %. We purchased the home at $  XXXX , under market value and put down 5 % down payment. We used $  XXXX  for renovations. We knew if we put in major renovations that we would meet the PMI removal requirement. We explicitly stated to  BBT  that this was a huge decision for us  ( th is is in email ) and that we wanted to make sure that it was possible to remove the PMI once we proved value. We could 've put down  20  % on another home that required no renovations, but we wanted this home as long as we could purchase it in a smart way. Using the funds to bring up the value and then remove the PMI.     BBT 's guidance was clear in that the process to remove PMI was based on the new appraisal and that if we proved value, it would be removed. Our closing documents also provided the same guidance for PMI removal. We had to prove the value of 20 % equity based on an appraisal. We made the decision to purchase our home, make $   XXXX   in improvements including new HVAC, ducts, insulation, full master bathroom remodel, flooring, paint, sheetrock, some plumbing and fixtures. Again, instead of using our funds for a   20   % down payment on a move-in ready home so that wed have no PMI, we opted to buy the home we really loved and put the money into the renovations. We felt confident we not only bought the house below market value, but that after renovations, wed see that investment pay off to remove the PMI.        XXXX   XXXX    :  Ten  months later, after our renovations were complete and we had an appraisal done that showed we had met the criteria of our value to remove the PMI, attaining slightly more than 20 % equity in our home at $  XXXX . We contacted  two  differ ent BBT representative s who provided us the same instructions for the removal. They guided us to provide the appraisal we conducted and a letter requesting removal to their PMI Removal Dept. in NC. The branch representative was helpful and happy for us. Another representative said the same thing.At no point did they mention there were any other requirements for PMI removal. However, a week after we submitted the request, BBTs requirements for PMI removal changed. They refused the PMI removal on the grounds that we had to be paying on our loan for at least  two  years, possibly  five, and reach an LTV of 75  %. This was communicated to us by the branch representative who learned this from the PMI Removal Dept. who was genuinely surprised. He gave us the headquarter 's executives contact information and suggested we reach out to him. We did and the situation became even more confusing and contradictory.       XXXX   XXXX   XXXX   : From   XXXX   XXXX   through   XXXX   XXXX  , we had several email correspondences and phone calls with their  VP of Group  Mortgage,    XXXX   XXXX    and  Asst. VP of Mortgage Group Operations ,   XXXX   XXXX  . All have been conflicting and confusing guidance :  XXXX  : We had a phone call with   XXXX   XXXX   who listened to our situation. He asked for the emails that guided our decision and hed look into it.    XXXX  : By email, we asked for an update. He said his legal team is looking at all the exhibits. In the meantime, he would have his mortgag e manager reach o ut to us with a secondary option. That option was to do a refi.   Around   XXXX   : Phone conversation with   XXXX   XXXX   who said that   XXXX   wanted an appraisal ordered so they could establish a baseline and see where we were at. We argued against this as we already had an appraisal done. We had a conversation with   XXXX   XXXX   by phone who also said the same. He said that our appraisal didnt count. The appraisal, by law, had to be done by the lender through a third party. This was the first time we had heard of this requirement. It was never stated in any of our closing documents or any other guidance we received from  BBT.     XXXX  :   XXXX   confirmed that the appraisal was ordered.    XXXX  : We had a call with the  appraiser  scheduled and explained the situation. The  appraiser thought i t was odd that they were ordering an appraisal when we already had  one done. He stated h e hadnt experience this before. He suggested not even doing the appraisal. However, we went ahead with it because we wanted to go through the process the bank suggested and knew our value would prove correct.    XXXX  :   2nd appraisal done. The appraiser,     XXXX   XXXX  , did not ask specific questions about how much money we spent on the renovations, nor was he from the area. The  appraiser we h ad originally,   XXXX   XXXX   XXXX   XXXX  , asked for a detailed list of costs and is based here in   XXXX   XXXX  .    XXXX  :   XXXX   emails us that the appraisal was received. We have a phone conversation that the value came in at $  XXXX . We had a long conversation about how this doesnt make sense considering the value of our appraisal, the comps listed and of the current neighborhood sales. After explaining the history of this entire situation, she claimed that she had no idea the whole story. She was simply asked to order the appraisal. I sent her our email correspondence with  BBT  and our closing documents regarding PMI. She said she would go back to   XXXX   XXXX   and advocate for us.    XXXX  : we ask for a copy of the appraisal. They said they would see what they could do.    XXXX  : we receive the appraisal a few hours ahead of a scheduled phone conversation with   XXXX   XXXX  . We recorded this conversation. We explicitly asked for what the process was for PMI removal, how they justified this " process '' and why it wasnt communicated to us by their branch managers, in closing documents or by any other representatives.  XXXX  himself was not clear as to what the process was for PMI removal, contradicting himself and continued to advocate for his branch  manager  to run the numbers for a refi. He repeatedly stated that the value is $  XXXX  and that we didnt qualify for PMI removal. He also made statements about their parameters for PMI removal being the law and a part of  Dodd Frank.     XXXX  : We received a confusing letter from the PMI removal department that was addressed to ou r appraiser  asking him to submit forms to update an appraisal that was conducted on   XXXX   XXXX   XXXX  . We never had an appraisal done on this date. It also indicated that the loan was owned by   XXXX   XXXX  , but then provided PMI removal guidance from   XXXX   XXXX  . In addition, the parameters this letter states for PMI removal is also different from what   XXXX   and   XXXX   XXXX   stated. In fact, their own appraisal didnt meet the parameters this letter asked for. We called  the appraiser to se e if he received the letter. He said he hadnt and thought all of it was odd. Hed never experienced this before.    Weve reviewed Dodd Frank, our closing documents, both appraisals, CFPB and the Homeowners Act of 1999.     Weve also had conversations with   XXXX   XXXX  , the owner of our loan. They said that their guidelines for PMI removal are not the law, they are simply guidelines.
CRITICAL DETAILS : The BBT a  ppraisal is lacking information that should be a part of the valu ation. This includes the failure of the appraiser to pull comps from what is currently for sale, ( showing 0 comps and 0 sales over a 1 year period in our neighborhood )  pulling comps from homes outside of our neighborhood from one year ago that would pull the value of our home   down, not listing the value of th he improvements and   renovations made, not including the value of the landscaping, deck, pergola, shed, and garage on the cost value analysis. The cost analysis area is blank. Theres no way to determine how he came up with the value of $  XXXX . Currently, there arent any homes in our neighborhood under $  XXXX .    One more point regarding PMI :  Our PMI is extremely high at $  XXXX /month. The reason for this, according to  BBT,  is because we put down 5 % and our  credit score at the   time was   XXXX  . However, in our communications with them via email before our actual purchase, we were racing to try to get the score higher by paying off all of our debt before we went into contract. Which, we did. In addition, the mortgage lender representative knew we needed as much cash as possible for our renovations and said we could go as low as 5 %. Now we are stuck with the $  XXXX /month.     Where we are now : Our gravest concern is that we were led to believe that t he BB  T process for PMI removal was attainable, we abided by their guidelines, sought recommendations and did everything we were supposed to do. PMI removal was what determined our decision to purchase the home and go down the road of renovations. When it came time to go through the process, BBT  did not adhere to their written communications and our closing documents. We went into contract with  BBT to purchase a home based on bad guidance from the bank itself. We would never have gone down the road we did  if we knew this all would happen.