Consumer complaint received 2019-08-24
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: LAKEVIEW LOAN SERVICING, LLC (MI)

XX/XX/XXXX, I submitted a request in writing to have a removal of my PMI since my loan balance was at 80.5 % and was scheduled to 80 %. My request was denied.

XX/XX/XXXX, I submitted a request to remove the PMI. I was at 79.8 % of my loan balance. I reached out to Lakeview because they sent back a blanketed, generic email stating someone would get back to me in 5-7 business days.

XX/XX/XXXX, I sent an email to request an update status.

XX/XX/XXXX, I was sent a letter stating that I would have to pay {$100.00} or do my own appraisal to make sure the house hasn't declined in value. I didn't pay for an appraisal at that time because I didn't want to pay additional money to the mortgage company.

XX/XX/XXXX, I realized I would be paying more in PMI insurance than the {$100.00} to have the house appraised.

XX/XX/XXXX submitted in writing a request to cancel PMI insurance to my mortgage company Lakeview Loan Servicing. My original loan value was for {$160000.00}, in which when I requested the cancellation, my LTV was 79.4 %.

XX/XX/XXXX, Lakeview Loan sent a letter stating I met the LTV but I needed to have a Broker Price Opinion to ensure the value of my house has not decreased and I can sent them {$100.00} to have this done by them.

XX/XX/XXXX, I sent a check in the amount of {$100.00} to have this done to prove that my house has not declined.

XX/XX/XXXX -- I received two letters from Lakeview Loan. The first one letter ( with the wrong loan number on it ) was denial to removal of PMI from my mortgage. They said that I haven't met the Loan to Value requirements & if I wanted to have another appraisal done, I could do it at my cost. The second letter contained the BPO comparisons and the new appraised value of my house to be {$160000.00}.

XX/XX/XXXX -- I called Lakeview Loan to verify what was actually happening with the account since the denial letter had the wrong loan number on it. I was told I was denied because the property value of the house is now at {$160000.00} and I have to pay 75 % of that amount to be able to have the PMI removed. There is nothing on their website nor the government websites that state 75 % of the new appraised amount. The appraisal was to see if my house has declined in value, FROM THE ORIGINAL LOAN, which it has not. I told them no where on their website does it show that it has to be from the appraised value.

XX/XX/XXXX -- I called back to verify what they told me yesterday after I tried to do more research regarding the cancellation of the PMI insurance. Again, they said my loan had to be at 75 % of the new assessment value of the house. I DID NOT AS TO REFINANCE THE HOUSE. I wanted to remove the PMI insurance because I have met the requirements stated on their website and the Consumer Financial Protection Bureau. I submitted in writing to remove the PMI, I have not been late on any payments, I have met the 80 % of the original loan value and my house value has gone up. They told me I would have to continue to pay the PMI until I reached {$120000.00}. Yet, when my original loan hits 78 %, that amount is {$120000.00}. They want me to pay even more money towards that insurance when legally they can not do that. I told them I wanted to talk to the supervisor 's boss to explain why I should not have been declined in my request. Their boss was not in the office and said they would contact me on Monday. The rep also said they would have the insurance department review and reach out with more clarification as to why I was denied the removal of my PMI insurance.