Consumer complaint received 2026-05-14 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: TFS FINANCIAL CORPORATION
State: OH

Complaint narrative:
I am filing a complaint against Third Federal Savings and Loan regarding deceptive mortgage servicing practices, inaccurate information provided by employees, lack of transparency regarding escrow disbursements, and a possible erroneous late payment record that may impact my credit reporting. My mortgage loan was originated through XXXX XXXX Mortgage XXXX in XX/XX/XXXX and transferred to Third Federal in XX/XX/XXXX. At the time of purchase, we had not yet sold our prior home and therefore did not have sufficient cash available to meet the threshold to avoid private mortgage insurance ( PMI ). In XX/XX/XXXX, after the sale of our prior home, I visited a Third Federal branch in person and made a substantial principal payment toward the mortgage. I also completed the re-amortization process at that time. Following this payment, our loan-to-value ratio was dramatically reduced, and we owned approximately 55 % equity in the property. During that branch visit, I specifically asked the teller whether PMI would be removed following the large principal payment and re-amortization. I was explicitly told yes. Based on that representation, I reasonably believed the PMI issue had been resolved. I later discovered this was not the case. Around XX/XX/XXXX, I received my escrow statement and learned that PMI had continued to be charged and paid for approximately eight additional months. This issue was compounded by Third Federals online account system, which only lists generic escrow disbursement entries without identifying the recipient, purpose, or details of the charges. At no point was I clearly informed through the online portal that PMI premiums continued to be deducted monthly. On XX/XX/XXXX, I again visited a Third Federal branch in person to address the issue. I was then told, contrary to the information previously provided, that I needed to submit a written request to remove PMI. I promptly complied with that requirement. Approximately one week later, I received correspondence stating that I was required to obtain a new appraisal because the property value had allegedly decreased. This requirement appeared unreasonable given that the property had been appraised at approximately {$500000.00} less than one year earlier during the original loan process, while the current mortgage balance is only approximately {$220000.00}. Nevertheless, I promptly complied and paid {$620.00} for the appraisal. The check was cashed, and the appraisal was completed on XX/XX/XXXX. On XX/XX/XXXX, I contacted Third Federal to confirm the status of the PMI removal request and to request a copy of the appraisal report for which I paid. During that call, I was informed that my PMI removal request had been denied due to an alleged history of late payments. This information is deeply concerning and appears inaccurate. I have never made a late mortgage payment, have never received notice of any late payment, and have never previously had any payment issues reported to me. I have a credit score over XXXX. Despite multiple calls to Third Federal on XX/XX/XXXX, I have received no meaningful explanation or resolution. As of today : PMI charges continue to be deducted ; I still have not received a copy of the {$620.00} appraisal report I paid for ; I remain unable to identify or verify escrow disbursements through the online portal ; I have unresolved concerns that Third Federal may have inaccurately reported a late payment that could negatively impact my credit ; and I have received inconsistent and misleading information from Third Federal representatives throughout this process. I am requesting that Third Federal : Immediately investigate and correct any inaccurate late payment reporting ; Provide a complete accounting of all escrow disbursements and PMI charges ; Provide a copy of the appraisal report for which I paid {$620.00} ; Remove PMI if the loan qualifies based on the current loan-to-value ratio and applicable law or loan terms ; Refund improperly collected PMI payments if PMI should have been terminated earlier ; Provide a written explanation regarding the denial of PMI removal and the alleged late payment history. I believe Third Federals handling of this matter demonstrates inadequate customer support, inconsistent and misleading servicing practices, and a lack of transparency regarding mortgage account activity.

Company response to consumer: Closed with explanation