Consumer complaint received 2020-01-20
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: U.S. BANCORP (NC)

Re : US Bank Loan To Whom It May Concern : I would like to file a formal complaint regarding US Bank and the handling of my mortgage loan. There are two issues at hand, please see the following : First : Our original mortgage loan was originated in XX/XX/XXXX with Private Mortgage Insurance ( PMI ) for the amount of {$240000.00} with an interest rate of 6.25 %. 
After the passing of my husband I refinanced my mortgage in XX/XX/XXXX for the amount of {$230000.00} with PMI. The new loan was a 30 year 4.625 % fixed rate with PMI. 
I have requested to have my PMI dropped from my loan to no avail. US Bank is not versed in the requirements of PMI cancellation. 
I have contacted US Bank several times and I received communication back stating my loan was not eligible for PMI cancellation which is not accurate. 
The present loan amount is {$190000.00}. The monthly PMI amount is : {$140.00} and the Loan to Value using the original appraised value is now 77.08 %. 
Per US Bank they are not using the original appraised value due to the refinance and their pulling of an Automated Valuation Model ( AVM ). I was told at the origination of my XX/XX/XXXX loan an appraisal was not required and one was not done. An AVM is not a full appraisal. US Bank stated the AVM value was {$210000.00}. My loan is a XXXX XXXX ( XXXX  ). 
The Homeowners Protection Act in 1998 was created to facilitate the cancellation of PMI as borrower build equity and the risk of default decreases.

12 CFR 1026.35 ( b ) ) Termination of the underlying debt obligation or ( 2 ) FIVE years after consummation if the unpaid principal balance is less than 80 % of the original value of the property and the consumer is not delinquent or in default on the underlying debt obligation My loan has been paid on time for the past 13 years. The property has increased in value with an estimate of {$270000.00} presently and my PMI request should be granted, actually this should have been automatically been terminated. By pulling an AVM and using those values to keep PMI on Customers mortgage loans is a UDAPP ( Unfair, deceptive, or abusive acts and practices ) violation amongst other regulation violations. 
Second : I live in North Carolina and my mortgage loan is under {$300000.00} and the late fee should be 4 %, and my Note has reflected a 5 % late fee for the past 13 years, another issue US Bank did not clear up when I had requested the change on my mortgage Note over the past 13 years. 
So technically, I have been over charged for 13 years regarding the late fee of 5 % and the PMI over charge when my mortgage loan has been under 80 % and it is 5 years after consummation ( XX/XX/XXXX ) which would amount to 9 months@XXXX = {$1200.00} refund due. I have not calculated the late fee refund as it occurred over the past 13 years. 
I am a XXXX XXXX and I have been patient but with no resolution. I am reaching out to file this complaint for a cure and for US Bank to do the right thing regarding my mortgage. 
Also, US Bank should be audited regarding the use of AVMs and the extension of the monthly PMI payment they are charging their customers without regard to the regulation. This is a UDAPP violation. 
Thank you for your time and I expect a resolution with the involvement of the CFPB