Consumer complaint received 2026-01-26 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: FIFTH THIRD FINANCIAL CORPORATION
State: MN

Complaint narrative:
Respondent : Fifth Third Bank, N.A. 
Loan Owner : Fannie Mae Loan Number : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Complaint summary Fifth Third Bank failed to process or formally deny a timely borrower-initiated PMI cancellation request while it still serviced my loan, then transferred servicing with the request unresolved. This resulted in improper PMI charges and significant, avoidable financial harm. 

Detailed complaint I purchased my home for {$500000.00}, which is the original value for PMI purposes. On XX/XX/XXXX, while Fifth Third Bank was the active servicer of my mortgage loan, I submitted written servicing requests for ( 1 ) cancellation of private mortgage insurance ( PMI ) and ( 2 ) a loan recast. 

On XX/XX/XXXX, I made a {$220000.00} principal curtailment, reducing the unpaid principal balance to below {$400000.00} ( 80 % of original value ). I was current on the loan and met all eligibility requirements for borrower-initiated PMI cancellation. The attached Mortgage History Statement shows a receipt code of XXXX on XX/XX/XXXX to document receipt of this payment. 

Despite receiving both my written request and the principal payment on XX/XX/XXXX, while Fifth Third still serviced the loan, Fifth Third failed to either : Process the PMI cancellation, or Issue a formal written denial explaining why the request could not be honored. 

Instead, Fifth Third transferred servicing effective XX/XX/XXXX, with PMI still in place and without any action taken on my recast request. 

Under the Homeowners Protection Act and Fannie Mae Servicing Guide Section B-8.1-04 ( Termination of Conventional Mortgage Insurance ), a servicer is required to act on borrower-initiated PMI cancellation requests received while it services the loan. A pending servicing transfer does not relieve the outgoing servicer of this obligation. Fifth Third did neither. 

Financial harm Improper PMI charges PMI of {$67.00} per month has been charged for : XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX XX/XX/XXXX Total improper PMI charges : {$330.00} Recast-related impact I also submitted a timely recast request while Fifth Third serviced the loan. XXXX Thirds failure to act or communicate prior to transfer caused a material delay. The current servicer ( XXXX XXXX  ) has advised that recast processing requires approximately 90 days, resulting in no reduced payment until at least XX/XX/XXXX. 

Based on my interest rate, the estimated incremental interest paid from XXXX through XX/XX/XXXX attributable solely to the delayed recast is approximately {$4500.00}. In addition, the new servicer is charging a {$250.00} recast fee that Fifth Third would not have charged. XXXX XXXX  has a XXXX processing time and has declined to, as goodwill, back-date my recast request to XX/XX/XXXX. 

Total estimated recast-related impact : {$4800.00} Total financial impact attributable to Fifth Thirds servicing failure : {$5100.00} ( {$330.00} PMI + {$4800.00} recast-related costs )

Company response to consumer: Closed with explanation