Consumer complaint received 2015-06-20
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account — 
Company: Onity Group Inc. (UT)

I obtained a mortgage loan on XXXX/XXXX/XXXX. The property securing the loan was a condo in XXXX XXXX XXXX, Utah, appraised on the loan date at {$370000.00}. The original loan amount was {$330000.00}. The XXXX payment on the loan, {$2100.00}, was made on XXXX/XXXX/XXXX. On XXXX/XXXX/XXXX, I made an additional payment in the amount of {$310000.00}, reducing the loan balance to less than {$24000.00}, or slightly less than 7.5 % of the original loan amount. I telephoned Ocwen Loan Servicing and asked to have the PMI cancelled, since the loan to value percentage was now well under the minimum percentage for mandatory PMI. Ocwen sent me a form letter dated XXXX/XXXX/XXXX which ignored the current loan balance. The letter stated I would be required to show a satisfactory payment history of at least XXXX months and provide a new appraisal or BPO prepared by Ocwen 's designated vendor before termination of PMI would be considered. I called Ocwen again ( XXXX/XXXX/XXXX ) and was told by a representative that Ocwen 's internal policy required that I follow the procedures outlined in the XX/XX/XXXX letter - no other options were available. I asked to speak to the supervisor. I was told the supervisor was unavailable. I asked how to get alternative consideration since the loan balance was now so small. She said she would submit a dispute/request on my behalf asking for retroactive termination of PMI to XXXX/XXXX/XXXX, but her system did not permit her to provide me with any copy. I then received a letter ( XXXX/XXXX/XXXX ) stating that PMI would be terminated only when the loan amortization schedule ( XXXX years ) reached an LTV of 78 %. The date could not be altered by payment of additional principal. I called Ocwen again ( XXXX/XXXX/XXXX ) and spoke with a representative about both letters, pointing out that both ignored the fact the original loan balance had been reduced by over 92 % with the XXXX loan payment. The representative told me for the first time I could have PMI terminated by providing an appraisal that was issued no earlier than XXXX days prior to requesting PMI termination. I told her I had requested termination of PMI in XX/XX/XXXX, when the original loan appraisal was only XXXX days old, but that in neither prior phone call or in the XXXX Ocwen letters was there any mention about the option to deliver the original appraisal, which with the reduced LTV percentage ( now less than 7.5 % ) would have satisfied the PMI termination requirements. The rep told me to send a letter requesting special consideration and enclose a copy of the appraisal. I did that on XXXX/XXXX/XXXX. The response from Ocwen was yet another form letter, reciting the same requirements I had been told on the phone. I paid off the loan in full on XXXX/XXXX/XXXX. When I requested a payoff quote, the letter from Ocwen told me I could contact Ocwen 's Consumer Ombusdsman, an office created as a resource to assist with unresolved concerns and issues. In no prior phone conversation with any Ocwen, rep nor in any prior letter from Ocwen had I been informed that such an office existed. I called that office and explained the entire story and history of the PMI issue. I was promised a quick response. On XXXX/XXXX/XXXX I received an email from the Ocwen Ombudsman reciting that I had not submitted a current appraisal dated within XXXX months of the PMI suspension request, so PMI would not be refunded. Yet again, the loan payment circumstances were simply ignored. I have never received any refund of the PMI payments.