Consumer complaint received 2018-07-01
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: WELLS FARGO & COMPANY (NV)

Wells Fargo Home Mortgage sent me a letter in XX/XX/XXXX, offering to cancel my private mortgage insurance ( PMI ) by one of three methods ; paying down the principle, showing structural improvements, or current valuation by getting a new appraisal at my expense. My house had to appraise at {$310000.00} ( 80.0 % LTV or lower ) or higher to qualify for cancelling the PMI based on current value. On XX/XX/XXXX they sent a second letter advising me the investor that owns my loan would allow a broker price opinion ( BPO ) inspection, instead of the appraisal. The BPO has a lower cost than the appraisal, so I elected to go ahead with the BPO at my expense. On XX/XX/XXXX I sent Wells Fargo Home Mortgage a check for {$200.00} so that their vendor could proceed with the BPO. The real estate broker came to my house over the next two weekends and the BPO was sent directly to Wells Fargo. On XX/XX/XXXX Wells Fargo Home Mortgage sent me another letter, regarding the BPO and their decision regarding the cancellation of the PMI. This letter stated that my home appraised at amount making my LTV ratio 70.4 %, and advised me that met the required amount of 80 % LTV ( or lower ) as set by the investor. The second paragraph of the letter says exactly : " While your loan does meet the LTV ratio requirement indicated above, the investor requires the increase in value to be based solely on completion of structural improvements since the closing of the loan. Because the appraisal did not provide satisfactory indication of the completion of/or cost of valid structural improvements, you need to make some additional steps to have your PMI cancelled. '' The letter goes on to say my structural improvements have to be {$43000.00}.

I advised Wells Fargo over the phone that their decision not to cancel my PMI based on current value, was unacceptable and unreasonable. How could they change the requirements after I went through all of the steps required in their letters? These are not generic letters. The letters have my name, and the property address, and my loan number, and are very specific to my loan and LTV situation.

I complained to Wells Fargo Home Mortgage via the XXXX telephone number and they finally elevated my complaint to senior management. Senior management was going to review my file in two weeks, then make a decision on the PMI cancellation. Every two weeks, Wells Fargo Home Mortgage failed to decide my case, and extended their decision date two weeks at a time, until XX/XX/XXXX.

On XX/XX/XXXX senior management representative called me to advise me they will not cancel my PMI and my case is closed.

Wells Fargo Home Mortgage needs to honor the statements made in their letters to me regarding my home loan, and cancel the PMI. I have easily met their requirements, and then they changed the rules after four months of work. What if I had either paid down the mortgage by {$40000.00}, or spent {$48000.00} in home-improvements, and they also declined to cancel my PMI? I don't understand how Wells Fargo Home Mortgage can write fraudulent letters and go against their own requirements after I have met them. I need Wells Fargo Home Mortgage to cancel my monthly PMI payments of {$150.00} because my LTV ration easily meets the requirments set in mutiple letters.

Thank you.

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