Consumer complaint received 2023-01-18
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Brightfunders, LLC (TX)

Concerning PMI on my mortgage with XXXX  XXXX, XXXX XXXX XXXX, XXXX, XXXX  XXXX Throughout XXXX and XXXX of XXXX, I placed several calls to Lower requesting removal of PMI from my mortgage. I was informed that, since the request was less than 2 years from the time of the mortgage loan origination, I would have to have an appraisal completed. I then requested that they schedule an appraisal. I never heard a word back from them. 

XX/XX/XXXX Friday, XX/XX/XXXX at XXXX XXXX  To : Servicing Customer Support Dear Sirs : I have done a bunch of work to this property and I would like you to schedule a reappraisal. I have enclosed the carport into a garage, put in XXXX XXXX of dirt to slope out the back yard and seeded it in, insulated the whole attic ( including the garage ), and put down new flooring in the living room and hallway. 

Please schedule an appraisal. I believe I have done enough work to get rid of the PMI on the loan. I truly appreciate your help. 

After hearing nothing back about an updated appraisal, I decided to pay the mortgage down to under the 78 % threshold, at which point " the lender or servicer must automatically terminate PMI when the principal balance reaches 78 % of the homes original value. '' And on XX/XX/XXXX, I sent Lower an email informing them of my intentions. 
Dear Sirs : " My payment due on XX/XX/XXXX will make my loan principal {$110000.00}, which is 78 % of the original appraised value of the house securing the loan. Please take the PMI off of the loan payment. '' On XX/XX/XXXX, I received this response : " XXXX XXXX - Servicing Team Support ( Servicing ) XX/XX/XXXX, XXXX XXXX  EST Hello, Thank you for contacting Lower regarding removing PMI from your loan. Please review the guidelines listed below : Per the investor of the loan ( XXXX XXXX XXXX, for PMI removal based on the current value of the home, the loan must be two years seasoned from the date of the first payment unless increase in value is due to substantial improvements made after loan closing.

Substantial improvements are considered kitchen & bathroom renovations, cabinets, adding a room, adding a pool, etc. Cosmetic improvements such as painting, flooring, landscaping, etc., are not considered as substantial.

If substantial improvements have been made, the borrower must provide proof of the improvements. This proof must include the following : A detailed list describing each improvement including the date each improvement was completed and the cost of each improvement Invoices for the improvements Photos of the improvements If the improvements are approved, an appraisal will be ordered by us, at the expense of the homeowner. Please note, the appraisal must be ordered through our office using XXXX XXXX valuation ordering system.

If substantial improvements have not been made, the loan will be considered as two years seasoned after the XXXX payment has been made. Once the loan becomes two years seasoned and has maintained a good payment history, the borrower can pursue PMI removal based on current Loan- to- value. Borrowers can request PMI termination on the date the mortgage balances reaches 80 % of the original property value. Your Loan-to-Value is currently 88.611 %. 

Regards, XXXX  '' I then made a payment on XXXX XXXX, XXXX that brought my mortgage down to under XXXX XXXX  XXXX XXXX to be exact. And this is what Lower 's payment website showed after the XXXX XXXX payment as well. 

On XX/XX/XXXX, I followed up with another email : " Good Morning, My loan is now paid down to under 78 % and I wanted to verify that the PMI is removed from the loan. 

The statement for the XXXX XXXX payment is for the same amount as before and does not reflect the PMI reduction. Your loan site states the PMI must be removed when the loan is at XXXX XXXX  or lower of the original home value ( {$140000.00} ). 

Please inform me of exactly how and when PMI will end on this loan. '' Lower responded with the same stuff about the loan being less than XXXX XXXX XXXX. 

I then followed up with a call to their Escrow team and was assured that the paper work was sent to the holder of the mortgage and that it would be taken care of by the middle of XXXX XXXX. 

Lower then proceeded as follows : XX/XX/XXXX Insurance Paid Mortgage Insurance Disbursement - {$64.00} XX/XX/XXXX Insurance Paid Mortgage Insurance Disbursement - {$64.00} Lower continues to refuse to lower my payment amount and remove the PMI from the mortgage. Even though the law states that " When the balance drops to 78 %, the lender must cancel private mortgage insurance. '' I am tired of their nefarious behavior. I have read over the law until I am blue in the face and, unless there is some kind of exception that is not included in what I am reading, No where does it say anything about having to wait 2 years. What it does say is that when I have paid down the mortgage balance to 80 % I can request removal. 
Then it states : When the balance drops to 78 %, the lender must cancel private mortgage insurance. 

I want the PMI taken off NOW and the payment lowered by the {$64.00} cost of the PMI. Also, I want refunded for the 2 PMI payments withheld AFTER the balance was below the XXXX XXXX threshold.