Consumer complaint received 2024-11-18 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: CMG Financial Services, Inc.
State: TX

Complaint narrative:
When my loan closed, the home value was XXXX and the loan was XXXX. This resulted in an LTV of 85 %, so I understood that PMI would be assessed as I was not below 80 % LTV.

When I sent in my first payment, I sent in an additional principal amount of XXXX, resulting in a new LTV of ~62 %. As such, PMI was far below the required threshold. 

When I received my statement dated XX/XX/XXXX, I confirmed the new principal balance was below the required PMI threshold and I reviewed the " Explanation of Amount Due '' section to confirm there was not a charge for PMI. When I saw there was no fee assessed under the " Explanation of Amount Due '' for PMI, I felt confident in making my payments as presented. ( I was told by a representative that this information can be found under the " Transaction Activity '' section, so I reviewed that section of the same XX/XX/XXXX statement and saw there was no reference to PMI in that statement either ), In early XXXX, I was making an another " additional principal '' payment and preparing to pay off the loan. At that time, I reviewed my most recent statement to confirm the principal balance matched the amortization schedule. When reviewing it, I realized that the fee for PMI was not noted on the statement under " Explanation of Amount Due '', but rather the applied payment for it was noted in " Transaction Activity '' section. ( I find this practice to be misleading and advise a change to the statement details ). 

When I realized that on approximately XX/XX/XXXX, I called XXXX, spoke with a representative and was advised that I simply needed to fax in a statement with a request to cease charging PMI and refund misapplied fees, as the XXXX at this point was well below 40 %. I sent in that fax request but hadn't heard a response. 

On XXXX, I sent in a request for a payoff statement and realized that the payoff statement still included a PMI fee, even though as of that day, my XXXX XXXX 15 %. 
At that time, I called and spoke with another representative that gave me different instructions for removing and refunding PMI. I asked how quickly this could be completed as I needed to pay off my loan on XX/XX/XXXX. I was advised I should hear by the morning of XX/XX/XXXX. On XX/XX/XXXX, I received another payoff statement, but there were no changes and PMI was still charged. 

I called on XX/XX/XXXX and spoke with an associate and was then transferred to an representative in escalation. He gave me yet XXXX set of instructions for submitting the request and advised that there wasn't a process for escalating the request, even though at this point, they had exceeded 30 days in processing time. He did give me instructions for getting the request in front of their research department, but those instructions were, again, incorrect. 

I called on XX/XX/XXXX to speak with a representative to walk me through the process and was given yet ANOTHER set of instructions, including verbiage that MUST be included in the request ( this is the 5th person I've talked to and first mention of this required verbiage ). I followed the steps but was advised it could take over a month as per their standard process. I requested to speak with an escalations specialist because I should not have to wait another month after being misadvised multiple times. At that point she transferred me to a supervisor. I was placed on hold, the transfer picked up, but no one spoke for several minutes, then I was just transferred to a customer satisfaction survey. 

It has been over 6 weeks since my initial request, and I am in the exact same place as I as on XX/XX/XXXX. I currently owe {$66000.00} on property valued at {$440000.00} ( ~15 % LTV ) In my most recent communication ( which includes the word " remove '' and my hand-written signature and date as CMGs communicated requirements ), I made the following statement : I am requesting an immediate and urgent refund for all PMI fees assessed after my first payment ( applied XX/XX/XXXX ) ; a total of {$790.00}. I also need a revised payoff statement sans any PMI charges. 

I need this ASAP as I need to pay my loan off no later than Friday XX/XX/XXXX. 

An important note : I will not be making the payment due XX/XX/XXXX, as I have been trying to get this paid off prior to that due date and have not been able to due to misdirection by CMG representatives

Company response to consumer: Closed with explanation