Consumer complaint received 2024-09-16 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Trying to communicate with the company to fix an issue with the loan closing
Company: Michigan Mutual, Inc.
State: DC

Complaint narrative:
Michigan Mutual , Inc . 
Mortgage Servicing XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, IL XXXX Via Email : XXXX Re : Discrimination and General Fraud Complaint regarding PMI Cancellation/Refund Request Loan # XXXX Escrow Department : I write this letter regarding my request to cancel and refund PMI insurance that was paid on the purchase of my house at XXXX XXXX XXXX, XXXX, MD. 

My initial request for the PMI insurance refund was made on XX/XX/XXXX. Michigan Mutual ( hereinafter, the Bank ) denied this request, stating that the seller of this property paid the PMI insurance at closing according to the HUD statement on the subject property. This statement is false because I provided fund records to show that I paid {$12000.00} extra at closing to cover PMI cost. I also contacted the title company, XXXX XXXX, asking why the HUD statement attributed the PMI cost to the seller, and they stated the bank advised us to put it that way. 

Subsequently, the Bank advised me that if they were to cancel the PMI, according to their records, the seller would get the refund. The Bank also argued that the PMI insurance could not be refunded. 

On XX/XX/XXXX, I spoke again with the Bank and the PMI insurance provider on a conference call. The PMI insurance company explained that they could refund the policy, if the Bank makes a written request based on the subject property meeting the equity requirement. After speaking with numerous bank agents in XXXX  of XXXX, the Bank agreed to request the refund of the PMI insurance, if the property appraised for {$460000.00} based on the loan to value ratio. The bank stated that I had to provide a letter describing renovations and send payment of {$150.00} for the appraisal fee. 

Noting that, prior to closing on the subject property, a full appraisal report was conducted on XX/XX/XXXX, which appraised the property at {$490000.00}, I provided the supporting documentation describing the renovations completed on the property and sent payment of {$150.00}. 

A property review of sorts was conducted on XX/XX/XXXX, by XXXX XXXX XXXX XXXX XXXX, however, it was not an appraisal. On XX/XX/XXXX, I received a response from the Bank stating that the request for the PMI refund was denied because the property only appraised for {$360000.00}, according the Brokers Price Opinion ( XXXX ) provided by XXXX XXXX XXXX. 

On XX/XX/XXXX, I ordered a full appraisal from XXXX XXXX XXXX at a cost of {$500.00}. That report dated XX/XX/XXXX, appraises the property at {$490000.00}, based on similar renovated homes sold recently within one mile of the property. This value of {$490000.00} is more feasible in being the same as XXXX value because of the recent increase in borrower rates for home purchases. 

I believe the Bank has blatantly acted in bad faith to fraudulently deny my PMI request and may have discriminated against me concerning my PMI request due to my race. Not only was the XXXX not a true appraisal, but it also reaches a blatantly false conclusion. This property is located XXXX miles off the XXXX border in an area that has had an overall 9 % increase in prices of homes sold since XX/XX/XXXX. Absent a complete market crash, no one would fathom a recently renovated home to decrease in value by {$120000.00} in just under 2 years of occupancy. The XXXX also contains defects which suggests it was simply a report of value previously conducted for unrenovated homes in the area and typed over to satisfy the Banks direction to undervalue the property. 

The Bank forced an undervaluing of my property to deny rights afforded to me under the Fair Housing Act. Comparing the actions of the Bank with the expert opinions regarding home values in the area, there is clear and convincing evidence that the bank induced XXXX XXXX XXXX into providing a false report with the intention to deny me a benefit and covert or delay the PMI refund. 

I demand the Bank refund to me the PMI paid at closing due to the documented increased value of the home and equity accrued. I also claim a refund of the {$150.00} paid for the false XXXX and the {$500.00} paid for a true appraisal. Should this matter fail to be resolved and my request for the PMI refund and additional appraisal costs be further denied, I will take legal action with a plea for punitive damages citing fraud and discrimination based on the intentional undervaluation of the property. 

Attached to this letter is the third-party appraisal. I trust I have adequately summarized my position and I will receive a response to settle this matter immediately. 

SincerelyXXXX XXXX XXXX XXXX XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation