Consumer complaint received 2020-05-06
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: LAKEVIEW LOAN SERVICING, LLC (NM)

I have an FHA loan on a home and have been trying to get the private mortgage insurance ( PMI ) removed from the loan for over a year. Through multiple written requests and 12-15 phone calls to Lakeview Loan Servicing, I have not been able to make any progress or receive any relevant information that would help me accomplish this. This issue can be easily resolved by Lakeview Loan Servicing providing me with simple information ( the balance of the loan needed to remove PMI ).  This has now personally cost me more than {$2000.00} and will continue to cost me hundreds of dollars per month until it is resolved. 

This began in XXXX of XXXX when I was trying to make an additional bulk payment in order to get the loan down to 78 % of the value and have the PMI removed. This FHA loan originated prior to the XX/XX/XXXX law change which makes the loan eligible for PMI removal. An initial written request to Lakeview Loan Servicing ( per the direction of a customer service agent ) led to no response regarding how I could go about paying down the loan. Follow-up on discussions with customer service agents, customer service managers, as well as subsequent written requests led to similar results. The only documentation I have received from Lakeview Loan Servicing was a generic letter that states that the PMI or Mortgage Insurance Premium ( MIP ) can not be cancelled because the loan to value ( LTV ) threshold had not reached 78 %. I understood this and was simply trying to determine what dollar amount represented 78 % of the loan so that I could pay the loan down to that amount. I had multiple customer service agents confirm that the correct dollar amount to have the PMI removed was {$190000.00} ; which is 78 % of the loan value ( which is {$240000.00} ).  However, I had other customer service agents provide different information including that the PMI could not be removed on the loan ( which is false ) and that they couldn't confirm the dollar amount because mortgage insurance is not handled by Lakeview Loan Service, but rather a third-party. I requested written details regarding the dollar amount needed to remove the PMI and was on multiple occasions told by Lakeview Loan Service agents and managers that I would receive a hard copy package in the mail with this information. To date, I have received no such package and still have no relevant information to assist in this. 

This problem has now worsened because my current principal balance on the loan is {$180000.00} which is 75 % of {$240000.00} loan ( and obviously well below the {$190000.00} that I was told was the threshold for removing PMI by a Lakeview Loan Servicing agent ). In a XXXX call to Lakeview Loan Servicing to resolve this issue, I was told by a customer service manager that the value of the balance of the loan required to remove the PMI was {$180000.00} though she could not clarify where this value came from. Subsequent calls and discussions with Lakeview Loan Servicing agents and managers could also not clarify the {$180000.00} and how the number was calculated. My balance is now below {$180000.00} and I am still not able to make any progress. My most recent request for documentation in XXXX of XXXX has resulted in another example of me being told I will receive information in the mail but never getting anything. I was told by a Lakeview Loan Servicing customer service manager that I would receive a package in the mail within 3-5 business days, but I never received anything. This is not an issue with a wrong address as I have confirmed my physical address with Lakeview Loan Servicing multiple times. 

I have met all the requirements to remove the PMI outlined in the original request denial from Lakeview Loan Servicing and according to the Consumer Financial Protection Bureau. I have : 1 )  Requested to remove PMI in writing ; multiple messages have been sent to Lakeview Loan Servicing with this request.

2 ) Always been current on my payments since the loan was established in XXXX. 
3 ) Never had any liens on the home. 
4 ) Paid the loan balance down to the point where it is less than 80 % of the value of the home.