Consumer complaint received 2024-05-18
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: Onity Group Inc. (FL)

This is the appeal letter I sent to PHH mortgage that describes exactly what happened : To whom it may concern, I wanted to go ahead and appeal the decision to not remove my PMI that was informed to me on XX/XX/XXXX. 

To begin, I wanted to describe the story and experience from my end. I requested to have my PMI removed and received a letter dated on XX/XX/XXXX ( Please see the attached letter provided to me ). This letter described the exact process of how to get the PMI removed and what the eligibility requirements were. The letter stated one option for PMI removal was to request a property valuation to verify the current market value of my house to be at least {$740000.00}. The letter also noted that if XXXX years had not elapsed since the origination date of the account, that PMI could still removed if substantial improvements were made to the home and the market value had increased as stated above. I was told to include a {$190.00} check within 30 days. The letter specifically states, Note : If the required details are not received within the 30-days, the PMI removal process must be reviewed again to determine the eligibility. I proceeded to call PHH customer service to make sure I knew exactly what needed to be done to remove the PMI and did have some questions about the mention of substantial improvements since at the time it had not been XXXX years. The mortgage originated on XX/XX/XXXX which means XXXX years would have elapsed on XX/XX/XXXX. I was told by a member from your customer service team that I could send the check within 30 days and send the list of substantial improvements ; or wait until XX/XX/XXXX after XXXX years have elapsed and send a check before the 30 day period elapsed. In order to avoid confusion, I did just that and sent the check through priority mail and made sure it arrived before the 30-day period ended. My bank statement shows that the check was cashed on XX/XX/XXXX. However, my tracking confirmation shows that the check arrived to your department before XX/XX/XXXX ( the 30 day period end date ). I did not have to send the check so close to the end of the 30-day period, but again was explicitly told by one of your customer service members to wait until after my XXXX year origination date of my mortgage. If I knew what I know now, I would have sent in a check immediately to get the process started earlier and sent in the substantial home improvements we have done to our house. I was told that each conversation with customer service is recorded, so I would appreciate if you could retrieve this recording to listen to the false information that was given to me. Regardless, of the XXXXyear mark, I will repeat the that the letter states in writing the following : Note : If the required details are not received within the 30-days, the PMI removal process must be reviewed again to determine the eligibility. I have abided by those exact standards and everything was given within 30 days so the original letter requirements should hold true. I proceeded to schedule the BPO appraisal. On a letter dated XX/XX/XXXX ( please see the attached letter provided ), I was told that I was denied the PMI removal. I called the customer service department, where they told me that the BPO appraisal came in at {$750000.00}. This is higher than the {$740000.00} threshold provided to me in writing in the original letter. I was confused and even the customer service member I was talking with was confused as to why the PMI was not being removed. Please see this recording as well. I have then made multiple calls with customer service where my case was assigned to an escalation team. Ultimately, on XX/XX/XXXX I was sent an email that stated that on XX/XX/XXXX the XXXX year mark had passed since my origination date and therefore the LTV threshold went from XXXX XXXX XXXX XXXX XXXX. I was denied because that would make the appraisal value of {$740000.00} no longer a valid eligibility requirement and the new required value would be much higher than even the {$750000.00} my BPO appraisal came in at. I was told multiple times that this change in LTV is due to investor requirements. The part that I dont understand from all of this is that if this is an investor requirement, why was this not stated on my original PMI removal letter anywhere? Why did the letter not state that I had until XX/XX/XXXX to complete these requirements because after the eligibility will change due to hitting the XXXX year mark on my mortgage? All the letter states is that I had 30 days to comply which I did. Again, I was specifically told by one of your customer service members that even after the XXXX year mark the same requirements would apply as long as everything was received in the 30 day period, which it was. Why was I given false information by your customer service team and by your letters in writing? If all these rules were already known, did I not deserve to be presented the proper information and not flat out lied to? I think this whole process has been completely unacceptable and unprofessional. I have a wife and XXXX XXXX kids that I live with. I am the sole provider of my family. Removing the PMI monthly payment, would mean so much to my family and help me support them further. I am so saddened that due to misinformation I may have to wait XXXX more years ( approximately $ XXXX of more PMI payments to be made ) to have this PMI monthly payment removed. Can you please help me to get this PMI removed? I have followed all the steps and requirements and was clearly misled. If you can not, I will be forced to take other measures and could use litigation or go through the Consumer Finance Protection Bureau for assistance. 

Thank you for your consideration and I appreciate any help you can provide.