Consumer complaint received 2019-03-01
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: FIFTH THIRD FINANCIAL CORPORATION (GA)

I bought my home in XXXX of XXXX utilizing Fifth Third Bank as my lender with a conventional loan. The home appraised for {$260000.00} and I purchased it for {$240000.00} but still had to have PMI because I put less than 20 % down. I have invested approximately {$75000.00} in the property since buying it and property values have steadily rose over the last three years. My PMI disclosure signed at closing by all parties is very clear about the PMI removal process. The PMI will automatically drop on XX/XX/XXXX. To remove it earlier than that date I will need to pay the loan down or, after 24 months and a good payment record, I can request the PMI to be removed on " the date the principal balance actually reaches 80 % of the original value of the property ''. The bank agrees the only way of showing/verifying the value is by requesting a new appraisal. The banks policy is you request the appraisal through them and pay for it but the bank arranges the actual appraisal company who handles it. The letter however, states getting a new appraisal is not a guarantee that the PMI will be dropped and now states the value is at 75 %. On XX/XX/XXXX I phoned Fifth Third Bank to question two issues I had with the letter : 1. I wanted clarification on why, if i have shown through the appraisal and upgrades that the value was in my home, would the PMI not automatically drop per Federal Law?

2. Why are they saying my value of the property now needs to be 75 % when our contract clearly states 80 %. 

I was advised that if I order a new appraisal then the value will be at 75 % if the new value of the home is used. I was advised that XXXX XXXX is an investor on my loan and they set the rules covering PMI even though its not a FHA loan. They went on to say that if my loan was sold and XXXX XXXX became and investor after closing that they could still implement rules. I challenged them on this and was met with confusing answers and could not site where they were getting their information from. I advised them we signed a contract and no matter how many times my loan was sold or what investors came on at what point, no one could change the terms of the loan and in my loan papers it is very clear what is needed to remove the PMI. I asked them if they even had my contract in front of them at which time they advised they did not. SO, I asked them if they are not looking at my contract and viewing the PMI disclosure page how can they even be intelligently talking to me about the rules governing my loan. I was placed on hold, they obtained my contract and at this point the person I was speaking to advised she was not sure why the letter I received said 75 %. During this time I also pointed out that apparently XXXX XXXX was an investor on my loan from its inception and if the investor dictates the terms of PMI, wouldn't it stand to reason that this WAS their terms. She believed at this point it was a mistake and put an order for the specific department to contact me within three days. 

On XX/XX/XXXX I received a call from Fifth Third Bank from the PMI specialist department. This person literally tried to tell me the same information as I just listed above. I asked if they had my papers in front of them, which they did not. I asked them to direct me to the legal authority they siting that dictated the information he was providing me and he literally said " we don't have those papers here ''. He advised me that when the homeowner asked for a new appraisal the value needed automatically goes to 75 % of the new home value. I stated by that logic, if I DID NOT ask for a new appraisal and requested the PMI to be dropped based on upgrades I completed in the home, I asked how would the bank determine my value was at 80 %. He did not have an answer and agreed the only way would be to obtain a new appraisal. So I clarified the only way to obtain a usable new home value number is through an appraisal but he is telling me that when I ask for a new appraisal my value then goes from 80 % to 75 %. After going over this a few more times I asked to speak to a manager and was advised none were available. I was told he did not know when one would be available. I obtained his name and operator number and reminded him that the call was being recorded ( by them ) and then he gave me the name of the manager and put me through to his voicemail. I left a detailed message. 

Later the same day ( XX/XX/XXXX ) I received a call from XXXX who advised she was the manager. XXXX proceeded to literally tell me the same exact information as above. She did not have my contract in front of her nor the papers or documents or authority that she was utilizing to advised the information she was telling me. XXXX, literally told me when my loan is sold and if there is an investor the terms covering my PMI can be changed. I advised her the letters I receive stating my loan was sold state the exact opposite of what she just told me. I stated those letter simply advise you who owns the loan and that Fifth Third Bank would still be servicing them and that the TERMS HAVE NOT AND CAN NOT BE CHANGED. All of this lead back to me advising XXXX the contract we signed ( Bank and myself ) is binding and can not be changed by anyone and that my contract states 80 % with no exceptions for ordering a new appraisal. At this point XXXX stated I signed a disclosure or waiver in my contract stating it could change. I advised him I did not sign anything remotely like that and have read my contract thoroughly multiple times. I further stated i did not believe it would be legal to have a document like that in closing papers unless it specifically addressed the terms of my PMI and I assured him I never would have signed a document like that and would have found another lender. I advised him I am sure because I made an informed decision about obtaining the PMI because I was either going to put approximately XXXX into upgrading the home or put it as part of my down payment to eliminate the PMI and lower my monthly mortgage cost. I thoroughly went over the rules governing PMI with my Fifth Third Bank loan officer and had a full understanding of how long it would take and what criteria would need to be met to remove the PMI. 
At this point XXXX asked me to be placed on hold so he could locate the disclosure he was referring to. I was on hold for approximately 15 minutes and he came back on the line and stated he was having a hard time locating it and asked if he could call me back. XXXX, never called back. 

I know its lengthy but I had to really break down the experience I am having with my attempts to remove my PMI. I have spared you the last year of craziness from when i initially started this process. The first letter I ever received was a denial to get a new appraisal because I have not reached 24 months on the loan yet but that letter stated when i did it would be at 80 %. The next request was made at the 25 month mark and it was then i was told i had to wait 5 years and it was 75 %. Long and extensive conversations with managers over that time went much like the ones described above with no one explaining where they are getting their information from and why they are not following our contract. 

Lastly, I have spoken to my loan officer ( who works for Fifth Third Bank ) and the attorney who closed on my loan ( who represented Fifth Third Bank ) and they have both stated that Fifth Third Bank is wrong and there is no other document in my loan papers that addresses what XXXX was stating. 

P.S. the difference between 75 % and 80 % is approximately {$20000.00} FL