Consumer complaint received 2023-02-10 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: LoanCare, LLC
State: GA

Complaint narrative:
I submitted a request to my mortgage company, LoanCare, for the termination of my Property Mortgage Insurance ( PMI ). The request was submitted because my property value has significantly increased thereby enabling the " Loan to Current Value '' ratio of my mortgage to be 75 % or less, which is the qualification that Loan Care says must be met for the termination of my PMI. 

After I submitted my request, LoanCare sent me a letter indicating that I needed to get an property assessment ( see attachment ). They offered me 2 options to get the assessmentdone, BPO ( Broker Price Opinion ) for {$150.00} or a Standard Appraisal for {$320.00}. I chose the BPO option and made the non refundable payment to LoanCare. Please note that the BPO determines the " CURRENT VALUE '' of my property which is the determining factor that LoanCare stated it would use to determine PMI termination eligibility ( see attachment ). I received a call from the BPO representative, set an appointment and the representative came to my property and did a thorough assessment. 

On XXXX I received a letter from LoanCare indicating that the BPO assessment had been done but I was determined to be INELIGIBLE for the termination of my PMI. I telephoned LoanCare regarding their decision and I was informed that the BPO assessment was not utilized in their evaluation but rather a Property Value at Origination ( PVAO ) of the loan amount was utilized ( see attached document ). Please note that the PVAO amount ( {$400000.00} ) is considerably less than the BPO assessment amount ( {$450000.00} ) and if I wanted to proceed with terminating the PMI I would have to pay down the mortgage loan balance in the amount of {$16000.00} OR I could request and pay for the standard appraisal ( {$320.00} ). 

I questioned this determination. I asked the LoanCare representative the following : XXXX. Why wasnt the BPO assessment that LoanCare offered me to get ( and I paid for ), why wasnt it utilized in the evaluation. The BPO assessment amount came to {$440000.00}. The " Property Value at Origination '' amount is {$400000.00}. The LoanCare representative said that she didn't know why. If LoanCare would have utilized the BPO I would have definitely have been determined to be eligible for PMI termination. Also, I informed the representative that LoanCare did not indicate in their XX/XX/XXXX correspondence that the BPO would NOT be considered in the evaluation process. If I knew that it would not be considered I would not have paid for and elected to utilize that option for the evaluation. 

XXXX. Why wasnt I informed that the " Property Value at Origination '' amount of {$400000.00} would be used to determine my eligibility for PMI termination. the PVAO was not mentioned in the XX/XX/XXXX letter that LoanCare sent me. The LoanCare representative said she did not know. The LoanCare representative again stated that if I wanted to get a full appraisal ( and pay {$370.00} ) I could do that and resubmit the request. Otherwise I would have to pay {$16000.00} to have the mortgage balance amount reduced and be found eligible for PMI termination. I asked the representative the following : XXXX. I then asked the representative that If LoanCare did not used the BOP in the evaluation why would the you use the full appraisal amount in the evaluation instead of the Loan at Original Value amount? She could not answer that question and stated that my request would be further reviewed. 

LoanCare 's evaluation and determination of my request for cancellation of my PMI insurance was fraudulent and totally unfair. This is my second complaint regarding this company. Please see the attached documents in support of my current complaint.

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