Consumer complaint received 2025-06-20 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: CMG Financial Services, Inc.
State: UT

Complaint narrative:
Sent official letter to CMG requesting additional documention. Below is the letter sent to them on XX/XX/year>. ADDITIONALLY I spoke with the executive resolutionist team and infomred him that the call would be recorded. I asked the quetsions below and he was not able to provide answers. I was told he would escalate to his manager and would receive an email or message through the message portal but I was never contacted through any avenue.

Thank you for your response and for clarifying the PMI removal process. However, I still have several concerns regarding how my property improvements were categorized and the reasoning provided for not waiving the two-year seasoning requirement. As this is an official dispute regarding the denial of my PMI removal request, I request that this letter be processed as such in accordance with applicable federal and state laws. 

Substantial Improvements and the Homeowners Protection Act ( HPA ) : I understand that the Homeowners Protection Act ( HPA ) provides the right to request PMI removal once the loan reaches two years and the loan-to-value ( LTV ) ratio reaches 80 % or less, based on the current property value. However, I would like to request further clarification on how the substantial improvements I made do not meet the guidelines for PMI removal.

You mentioned that substantial improvements typically involve major renovations that improve marketability and extend the useful life of the property. I would like to understand why the improvements I made, specifically the demolition of concrete inside the garage that previously allowed for parking only one car, and the repouring of that concrete to create a space capable of parking an entire RV and five cars ( by adding two new driveways ), are not considered substantial structural improvements. These changes clearly enhance the marketability and utility of the property, especially as the property now accommodates far more vehicles, improving the functionality of the space.

Cosmetic vs. Substantial Improvements : In your email, you classified certain improvements like heating and air conditioning, landscaping, new appliances, adding electrical outlet and power to the garage, and replacing a broken compressor as cosmetic. However, the demolition of concrete and addition of new concrete is not merely cosmeticit is a structural change to the property that improves its functionality and marketability. Why is this not considered a substantial improvement in line with the criteria for structural improvements under federal guidelines?

Could you please provide the specific investor guidelines or documentation that supports the categorization of these improvements as cosmetic rather than structural? If these improvements do not meet the definition of substantial, I would appreciate the opportunity to review the exact criteria and examples used by your team to arrive at this conclusion. 

XXXXppraisal and PMI Removal Request : I also understand that an appraisal must be ordered through your office. I would like to confirm whether CMG is denying my right to request an appraisal or voluntarily pay for one, regardless of the intended purpose. Can you please confirm that CMG is indeed denying my request to obtain an appraisal at my own expense? 

Request for Additional Documentation : Given the complexity of this matter, I kindly request that you provide the specific documents related to the substantial improvement criteria, as well as any guidelines from your office or the investors, to help me better understand the reasoning behind the denial of my PMI removal request. 

Please be advised that, if I do not receive a satisfactory response or resolution to this matter, I will be considering further legal action, including filing a summons, to ensure my rights are protected. 

I appreciate your assistance and look forward to your prompt response. I believe the substantial improvements made to my property warrant reconsideration of my request for PMI removal, and I am hopeful we can reach a resolution that accurately reflects the propertys enhanced value. 

Thank you for your time and consideration.

Company response to consumer: Closed with explanation