Consumer complaint received 2024-11-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: RoundPoint Mortgage Servicing LLC
State: TX

Complaint narrative:
I am experiencing issues with my mortgage servicer, RoundPoint Mortgage Servicing LLC, regarding the removal of escrow and Private Mortgage Insurance ( PMI ) from my mortgage account. Despite fulfilling all specified requirements, including maintaining a Loan-to-Value ( LTV ) ratio well below the required 80 %, RoundPoint Mortgage has repeatedly added new conditions, delayed the process, and provided conflicting information, preventing the removal of both PMI and escrow. 

Complaint Details : Initial Request and Requirements Fulfilled : On XX/XX/year>, I requested to have the escrow removed from my mortgage. RoundPoint acknowledged receipt of my request on XX/XX/XXXX at XXXXXXXX XXXX. and informed me that PMI would need to be removed first to proceed. 
I submitted a request to remove PMI and provided all necessary documentation, including a Broker Price Opinion ( BPO ) that confirmed my LTV is well below the 80 % threshold required for PMI removal. The BPO was completed and returned to RoundPoint on XX/XX/year>, as confirmed by the broker who submitted it. 
Repeated Delays and Added Stipulations : Despite meeting the required conditions, RoundPoint has repeatedly delayed the process by introducing new, uncommunicated stipulations. Most recently, on XX/XX/year>, RoundPoint added a requirement that PMI and escrow can not be removed because the property is located in a FEMA-designated disaster area. 
This FEMA-related stipulation was never disclosed in prior communications or outlined in my mortgage documents. Each time I fulfill a requirement, RoundPoint imposes additional stipulations, effectively preventing the timely removal of PMI and escrow. This pattern of continually moving the goalposts appears to be a tactic to maintain escrow and PMI, creating undue frustration and financial burden. 
Escrow Payment Increase Without Adjustment : My monthly mortgage payment increased from {$3600.00} to {$4300.00} due to a significant rise in my propertys assessed value. If the property value had not increased, this payment adjustment would not have occurred. Despite this, my Homestead Credit has not been applied, and my escrow payments have only increased with no reduction or adjustment, contrary to CFPB Regulation 1024.17, which governs escrow maintenance and adjustments. 
Similar Complaints from Other Customers : Through research, I found multiple similar complaints from other RoundPoint Mortgage customers, who have faced similar delays and additional requirements when attempting to remove PMI and escrow. These practices appear to be systemic and designed to prevent timely removal of these obligations. 
Request for Resolution : I am seeking the CFPBs assistance to : Ensure RoundPoint Mortgage complies with federal regulations and my mortgage agreement, particularly regarding escrow adjustments and the removal of PMI. 
Obtain immediate removal of PMI and escrow based on my LTV compliance and the fulfillment of all disclosed requirements. 
Investigate RoundPoint Mortgages practices concerning delays, additional stipulations, and FEMA-related restrictions that were not previously disclosed, to ensure fair treatment of all customers. 
Supporting Documentation : Copies of all communication with RoundPoint Mortgage regarding PMI and escrow removal. 
BPO verifying my LTV is below 80 %. 
Documentation of payment increase due to property value reassessment.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation