Consumer complaint received 2020-09-01 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
DISPUTE WITH : - Shellpoint Mortgage Services - NewRez LLC BACKGROUND : My house was purchased at a sale price of {$550000.00}. I put a 10 % down payment ( {$55000.00} ) ; due to the down payment amount being below 20 % I was required to pay for Private Mortgage Insurance ( PMI ). This was in XX/XX/XXXX and I have paid my mortgage on time every month and my account is in good standing. The mortgage was with originally through " XXXX XXXX '' and the collection was handled by " XXXX ''. XXXX filed for bankruptcy and my loan is now being serviced by " Shellpoint Mortgage Servicing ''. The transfer took place mid to late XXXX. 

ISSUE : In XX/XX/XXXX while going through various mortgage documents I found a letter sent to me by XXXX which indicated that my mortgage was eligible to cancel PMI with the reasoning being that the original Loan-to-Value ( LTV ) amount was below 80 %. The letter was sent on XX/XX/XXXX. I did not respond at the time since the " Homeowners Protection Act '' states that the lender is required to automatically drop the PMI at the point which the original LTV has reached 78 %. The cancellation amount ( 78 % of {$550000.00} ) is {$420000.00} and was reached on XX/XX/XXXX where the principal amount was {$420000.00}. 

The LTV of my loan in XX/XX/XXXX was already around 75 % but I am still charged PMI every month. Confused as to why, I started looking into what I could do to push that along. The original letter I received from XXXX in XX/XX/XXXX said that I have to send a message to start the process. Shellpoint 's website also indicates that for PMI cancellation to take place would also require that I send a message. 

The mortgage company owned by Shellpoint that I interface with directly is called NewRez. Using the messaging form on their website on XX/XX/XXXX I sent a message that I wanted the PMI cancelled. Shortly after I received a letter in the mail stating that I have to pay for an appraisal to remove the PMI. I immediately called them and told them that I would not get my house reappraised and that the PMI should have been rermoved automatically ; every customer representative confirmed that the automatic cancellation should have happened last year. They told my that they would investigate the issue and within a 45 day window would give me an answer. It has gone past their self imposed window and they still say that the issue is " pending '' without offering any additional information. 

I was told that since I send a message to cancel the PMI that I have to now get an appraisal implying that letting it cancel automatically would have avoided this. The problem is that its almost a year past the point when the PMI should have been automatically cancelled. If I did not message the company then presumably I would be paying PMI indefinitely. I believe Shellpoint Mortgage Servicing to be in violation of the Homeowners Protection Act by refusing to drop the PMI.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation