Consumer complaint received 2021-08-28
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: MUTUAL OF OMAHA MORTGAGE, LLC (CA)

My mortgage servicer, Mutual of Omaha, has not started the process of Private Mortgage Insurance ( PMI ) removal from my loan, despite the fact that I meet the criteria for PMI removal and the fact that I initiated the process on XX/XX/XXXX ( all dates mentioned afterwards are for the yearXX/XX/XXXX ). I hate spending time on my weekends filing a complaint, but I am at the point where they have cost me nearly {$1000.00} and that action needs to be taken against them so they are held accountable. 

Since home prices are increasing, I was able to calculate that I should very likely qualify for PMI removal if my home 's value were reassessed. My current loan balance is approximately {$670000.00} ( with an originally appraised value of {$760000.00} ). Recent sales in my neighborhood indicate that my home is now worth at least {$900000.00} ( this is a conservative estimate, and is likely much higher ), so the Loan to Value ( LTV ) ratio would be approximately 75 %, which is less than the 80 % threshold usually required to remove PMI. 

On XX/XX/XXXX, I contacted Mutual of Omaha to start the removal of PMI via email. I then received a response on XX/XX/XXXX ( after sending a follow-up email on XX/XX/XXXX ) to call their servicing department. I called the provided number, and was then told I would receive a letter with instructions within a month. On XX/XX/XXXX, I received a letter stating that I need to schedule an appraisal or a Broker Price Opinion ( BPO ) with Mutual of Omaha to evaluate my home 's value to ensure that the LTV ratio is less than 80 %. I called the servicing department that same day ( XX/XX/XXXX ) to inquire which is preferred, and the agent indicated that the PMI could be removed with either an appraisal or BPO, given that my loan was originated about a year ago. I picked the BPO because it is {$150.00} cheaper than the appraisal. So, I sent a check ( to pay for the BPO ) on XX/XX/XXXX along with paperwork to request a BPO to evaluate my home 's value to see if it is eligible for PMI removal. 

On XX/XX/XXXX, I received a letter from Mutual of Omaha with the check returned stating that I can not use a BPO for PMI removal because my loan was originated less than two years ago, and must use a full appraisal. This conflicts with the information the servicing department told me, so I called Mutual of Omaha that same day to ask what happened. I was transferred to a supervisor who mentioned that I do need to pay for a full appraisal and provide a list of home improvements. She said I need to normally mail the check and list of improvements in, but allowed me to pay by check over the phone, and allowed me to email the list of home improvements. This supervisor stated the list only needed the name of each improvement and the cost of each improvement, so I emailed that the same day. I was told I would receive an update by Monday, XX/XX/XXXX. 

On XX/XX/XXXX, I did not receive and email or update from Mutual of Omaha. I called later that week to ask for an update, and was told to wait until Friday, XX/XX/XXXX. I then received an email from Mutual of Omaha 's " Research Department '', who said they are looking into the matter. When I requested a timeline or any status update, my email was not answered. 

I called on XX/XX/XXXX, and was told to wait another week. I then called on XX/XX/XXXX, and was told that my list of home improvements was not valid ( even though I sent it to the correct email address ) because there were no dates on each improvement ( which I was never told to list ). I re-sent the list of improvements with dates of completion that same day, and was told to call on XX/XX/XXXX. 

I called XX/XX/XXXX, and was told that I should receive a call from an appraiser by XX/XX/XXXX, which I have not received. 

I know that it is not in the interest of mortgage servicers to remove PMI from their loans, but Mutual of Omaha has made it exceptionally difficult for me to remove PMI due to various misinformation provided to me and several processing errors. This has resulted in nearly {$1000.00} of PMI payments that should not have ever been made ( not to mention the money spent on an appraisal that never happened ). I can not say whether these issues are intentionally caused by Mutual of Omaha or not, but the end result is the same in the monetary damage and frustration it has caused. I am willing to be understanding of certain errors, but given that this process started over four months ago, the processing delays are unacceptable, and Mutual of Omaha should be held accountable for this.