Consumer complaint received 2025-01-18 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: United Shore Financial Services, LLC
State: FL

Complaint narrative:
To Whom It May Concern : I am writing to file a complaint regarding my mortgage lenders refusal to comply with the provisions of the Homeowners Protection Act ( HPA ) regarding the removal of Private Mortgage Insurance ( PMI ).

According to the HPA, lenders are required by law to automatically cancel PMI when the loan-to-value ( LTV ) ratio reaches 78 % of the original value of the property, provided that the borrower is current on mortgage payments. I have met these conditions, as my mortgage balance has now reached below the 78 % LTV based on the original property value, and I have consistently made my payments on time.

However, my lender has informed me that my loan must be seasoned for two to five years and that I must meet a Loan-To-Current-Value ( LTCV ) of 75 % or less in order to qualify for PMI removal. This requirement conflicts with the automatic cancellation provision under the HPA, which is based on 78 % LTV of the original value, not the current value of the property.

I believe this is a violation of the HPA, as the lender is imposing conditions that are stricter than those mandated by federal law. I am requesting your assistance in resolving this matter and ensuring that my lender follows the legal requirements for automatic PMI cancellation. 

Also there are several Appraisal Concerns : In addition to the non-compliance with HPA provisions, I have significant concerns about the accuracy of the appraisal report used by the lenders chosen appraiser : 1. Comparable Adjustments : The appraisal report states, Due to the scarcity of sales in the area, all comparable adjustments could not be bracketed, and all net adjustments have been positive. This has no negative effect on value nor marketability. While this is noted, the lack of negative adjustments or a more accurate adjustment process may have resulted in an appraisal that does not fully reflect the true market value of my property. 
2. Solar Panels and Backup Batteries : The appraisal report did not consider the solar panels and backup batteries as part of the propertys value, even though these features are financed with an agreement that includes ownership transfer upon full payment. Since ownership will transfer upon completion of the financing agreement, these features should be factored into the homes value as permanent property features. 
3. Property Unit Misclassification : The appraiser did not correctly list my property as having two units. The second unit has its own entrance, a separate bedroom, a full bathroom, a kitchenette, a living area, and a washer and dryer, which clearly qualifies it as a separate living unit. This misclassification may have impacted the final valuation of the property.

Below are the details of my mortgage and situation : Lender Name : UNITED WHOLESALE MORTGAGE Loan Number : XXXX Loan Origination Date : XX/XX/2022 Current Loan Balance : {$520000.00} Original Property Value : {$600.00}, XXXX LTV at Time of Complaint : 76.60 % ( appraisal ordered through their office ) I kindly ask the CFPB to review this case and ensure that my lender complies with the Homeowners Protection Act. 

Thank you for your attention to this matter. Please feel free to contact me if you require any additional information or documentation. 

Sincerely, XXXX XXXX and XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX FL XXXX XXXX # XXXX

Company response to consumer: Closed with explanation