Consumer complaint received 2020-05-12 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: FIFTH THIRD FINANCIAL CORPORATION
State: IL

Complaint narrative:
Fifth Third bank is in violation of the Homeowners Protection Act and refusing to acknowledge their wrongdoing. I have brought the matter to their attention that I have felt I have been overcharged since the account has hit 78 % equity. After 2 months of working with them on a resolution, they haven't provided one and are providing new reasons why they continue to not adhere to the stated Federal law. 

As far as the timeline, upon realizing that I was being overcharged I reached out to Fifth Third bank on XX/XX/XXXX to cancel the PMI payment, after they stated I needed to request in writing and the PMI would not automatically fall off. I received a letter dated XX/XX/XXXX with cancellation. I expressed my concerns that the PMI was not automatically cancelled and that the agent XXXX XXXX would open a case for my complaint because of my concerns. I was later mailed a letter dated XX/XX/XXXX from XXXX XXXX with the Office of the President which stated the case number and that it would be 15 to 25 days before another letter with more information will be provided.She followed up with a phone call to understand my concerns where I stated that I felt taken advantage of, I had concerns with Fifth Thirds business practices being unethical, and that Fifth Third hasnt acted in accordance to the law where PMI should have automatically been dropped. I also mentioned that I had not received any PMI schedule or amortization schedule upon origination of my loan. I explained how I felt uncertain because of their business practices by the way things were being handled with my situation and recent legal action taken against Fifth Third Bank for agents unlawfully opening accounts without customers acknowledgement with the goal of hitting sales targets. I stated how I was protected by the Homeowners Protection Act and requested back payment in the amount 23 months I had been charged after reaching a 78 % equity. I also stated that PMI is a matter of protection for the bank and I received nothing in return for the PMI they overcharged me to protect themselves. 

I received another letter dated XX/XX/XXXX that the department was still researching the complaint and that I would receive more information via written response upon the completion of the research. I received another letter on XX/XX/XXXX stating that they are still researching the complaint, apologizing for inconvenience. I called on XX/XX/XXXX to check on the status where I spoke with XXXX XXXX about my dissatisfaction with the time this was taking and how the time provided to me when I first filed the complaint had more than passed. I also discussed a previous issue with them about a late payment charge where I was charged a late payment on a late charge when I switched banks and auto-payment had not gone through after I sent in the proper paperwork multiple times. I stated the representative told me in an earlier call when that was discovered, they could not waive all late payment fees, but she would waive one as a courtesy but I would have to check back on my account to verify it went through. After explaining the previous issue and lack of resolution from Fifth Third Bank, XXXX assured me they were doing everything they can to get the information I was requesting and they were in the final stages of getting a response to me about the case. She also stated she would add the late payment concern to the case as well. When I questioned the length of time it was taking to research my complaint, she detailed the reason for delay was a non-response from the company they are working with on the loan when the timeline was called into question. 

I received another letter dated XX/XX/XXXX on Saturday, XX/XX/XXXX which advised that the investor is Fannie Mae and that my property is an investment property, where the PMI would only automatically cancel when the loan reaches the half life date, unless the bank receives a written request when LTV is less than 70 %. An enclosed a letter of PMI cancellation was included, but Fifth Third Bank did not provide any documentation of the PMI or amortization schedule I requested. 

I called back and reached XXXX XXXX on XX/XX/XXXX expressing my concern that the complaint I had raised was not addressed. I stated I was unaware of my loan being classified as an investment loan and wasnt sure it met the criteria for XXXX XXXX to classify it as such. I also stated that it is required by law I receive certain disclosures and notices related to PMI, and that the disclosures are required whether it was an investment loan or otherwise. The disclosures include the initial disclosure at consummation of the loan, annual disclosures on the PMI requirement and an amortization schedule that identifies the PMI schedule. These are identified in the Homeowners Protection Act, section U.S.C. 4903 ( a ) ( 2 ) and 4903 ( a ) ( 3 ).

Company response to consumer: Closed with monetary relief