Consumer complaint received 2018-01-04
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: SUNTRUST BANKS, INC. (FL)

We have a mortgage with SunTrust bank. We moved into our brand new walk out basement style home XX/XX/XXXX We are presently paying PMI. We requested to have the PMI removed. On XX/XX/XXXXwe had our first appraisal by XXXX XXXX with XXXX  XXXX XXXX XXXX,XXXX out of XXXX  XXXX, Fl, one county south of our home. The appraisal came back 1% off (a little over $3,000  off) from the required 75% LTV rate.Upon our assessment of this appraisal, there were many concerns and factual errors. One of them including the use of XXXX standards of measurements of GLA (gross livable area) on our basement home but not on the first comparable basement style home next door to us. That was at XXXX assessment. Then the appraiser had the "actual age" of the first comparable incorrect. His report stated 0 years when in fact it was 2 years old, a XXXX assessment. There were other concerns and a letter was written regarding our concerns to SunTrust Bank. After much confusion as they had misplaced this letter, SunTrust responded with a  new appraisal at "no cost to us." Unfortunately,  they did charge us a XXXX bill (above an beyond the cost of our original appraisal of XXXX.). After much hassle, we were able to get the money reimbursed back into our account.Due to the errors on the first appraisal and not having an appraiser from our local area (as much of the errors were due to not having knowlege our local market), we fairly requested the second appraiser to be from our county, XXXX XXXX County. SunTrust would not  match our request despite our written concerns. The second appraisal was performed on Saturday,  XX/XX/XXXX by XXXX. XXXX XXXX  XXXX from XXXX XXXX XXXX, XXXX out of XXXX XXXX Florida. This again is in another county, XXXX County. After waiting 6 weeks for the report, we were called by XXXX XXXX  with report that the appraisal is $10,000 less than the first report. We were told the bank would be gracious enough to use the first appraisal. We then asked for a copy of this report for review. Upon review on XX/XX/XXXX, It was apparent there were some issues again. First, we had 1805 sq ft of unfinished basement space apparently not assessed on this appraisal. Second, we did not see any documentation showing any value or acknowledgement given to the over $60,000 worth of home improvements. Actually, we have a XXXX assessment for our "condition" when compared to comparables in our neighborhood. Except with one comparable, which is 12 years old, we are equal in condition assessment. On the first appraisal in XXXX we were given a XXXX assessment.  We notified SunTrust through XXXX XXXX on XX/XX/XXXX of these concerns. With many email communications sent to SunTrust regarding status of our new review, we finally received a response via email from XXXX XXXX  on XX/XX/XXXXIt states the appraiser was unable to find any similar style homes as we have a walkout basement style home. However, we have 2 others on our street. It further states this unfinished basement (which is centrally heated/cooled, has power/lights, dry  with a sump pump, and insulated) is an "amenity" and has "no market reaction as to assigning any more value that would be given to a storage area." No further cause for reconsideration of value with the appraiser. Still no response to the lack of assessment to the upgrades .With much surprise, as the bank surly was OK IN ACCEPTING  value to this unfinished space when trying to get the home loan, but now, trying to remove PMI, it is no longer of value. Actually, the other 2 homes next door to us that also have unfinished basement space "amenities" was also shown to have value upon selling and appraising of their homes for their required mortgages. We fail to understand how it is OK to accept the above reasoning for not assigning value when in fact there is proof in our VERY local market of value, including in our original home appraisal by the bank completed onXX/XX/XXXX So today we called our XXXX XXXX elected county Appraiser, XXXX XXXX. He has been aware of the issues with our appraisals. Upon further research, he stated his main red flag with this second appraisal is that it comes in almost $4,000 LESS than our assessed taxes.(This is all public knowledge by going online to do a property search and XXXX XXXX has in the past welcomed any calls by SunTrust or out of county appraisers).  XXXX  XXXX then explained, our property taxes are based on a Market Value Approach. This is based on recent home sales in our local area. The assessed tax value is 75%-80% of the True Market Value. He is unsure how a fair appraisal would then come in LESS than the taxed assessed value. He stated it can only happen if our home was run down or had a big decline in sales and values in our area. This is  not the case as seen by recent sales in our area. He did a computer assessment which can be off by as much as 10% and our lot/home value came up as $450,000. Even at a 15% decrease that is XXXX. Our assessed taxes are at XXXX (Lot XXXX and home XXXX). The second appraisal came in at XXXX. He understands as an appraiser for the county, appraisals are not based of price per sq foot, however he states there should not be a huge difference in price per square foot  if the homes compared are good comparables in location, size, features and condition. He was surprised to see our home price valued at XXXX a sq ft while the other 3 comparables (1 including a basement home) ranged from XXXX - XXXX per sq foot.  Even our next door neighbor's home, which is a basement home, sold 1 1/2 years ago at a value of XXXX a sq ft. He is puzzled at how these appraisals continue to be so low, as are we. Unfortunately, it appears fraudulent, at the minimum, with inaccurate and unfair appraisals being performed in order for us to continue our PMI payments. SunTrust response times were exceptionally long  (now with 6 payments made since our first appraisal). SunTrust bank has copies of all our letters, appraisals, and correspondences.