Consumer complaint received 2017-11-15
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC (FL)

We purchased a home with a conventional mortgage with New Penn financial. Due to the fact that we put less than 20 % down PMI was required. Since that time, we have paid down the principal, constructed a pool, and home values have increased. It is clear, that the loan to value ratio is now significantly less than 80 % ; therefore, PMI is should no longer be required. 

Approximately two months ago, I contacted New Penn financial requesting that the process began to have PMI removed. They advised that an appraisal would needed to be done ; therefore, would be sending an authorization form to me. The document  XXXX attached ) had the following concerning language : " Please note, a full appraisal may cost a minimum of {$400.00}, and it must be performed by New PennXXXX chosen vendo. '' This language, essentially allows New Penn financial to charge me, the customer, an unlimited amount for the appraisal. I phoned the company requesting to know the cost of the appraisal and/or the maximum amount before I would signed document. At that time, I was advised to call back in two days and they would tell me the amount. Approximately five days later, I phoned New Penn financial and was told that they could not provide the cost of the appraisal before hand and that it would be at least {$400.00}. They added, that the only way for PMI to be removed would be to sign the document as is. I called several more times asking to speak to management and was told that none were available. Furthermore, I was advised that if I signed the form that when the appraiser called I would be able to obtain the cost at that time. We signed the form ; however, I added the caveat " if greater than {$800.00}, do not move forward with appraisal. '' Today, I received a phone call from the appraiser " XXXX '' XXXX phone number XXXX ) who advised that because he is a third-party contractor he is unable to provide the cost to me the homeowner. He stated to call his contracted employer, XXXX XXXX, for additional information. I phoned XXXX XXXX XXXX phone number XXXX ) and was told by " XXXX '' that has a homeowner I would not have to pay for the appraisal and that any fees were determined by the lender. I again phoned New Penn financial and was advised that the cost would be at least {$400.00} and that it would be impossible to advise the exact amount before the appraisal was done. During the conversation the agent provided multiple inconsistent statements adding that the statement " a minimum of {$400.00} '' meant that I would not have to pay anything more than {$400.00}. Additionally, the agent stated that because the form had already been signed that we had no choice but to continue with the appraisal at my expense. I again requested to speak with a XXXX ; however, was placed on hold for 60 minutes. At that time, I ended the phone call. 

In conclusion : 1 ) the company is pressuring I sign a document giving them unlimited authority to order an appraisal at any cost. 2 ) the company is making it impossible to have PMI removed. 3 ) the company has provided multiple erroneous statements in an attempt to get me to comply. 4 ) the company is not allowing me to escalate the complaint to a management team