Consumer complaint received 2024-07-23 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: RoundPoint Mortgage Servicing LLC
State: MI

Complaint narrative:
Dear XXXX, I am writing to formally lodge a complaint against RoundPoint Mortgage regarding their repeated denial of my requests for Private Mortgage Insurance ( PMI ) removal. I believe their actions constitute unfair and discriminatory practices. 

Background : I have been a homeowner with a mortgage through RoundPoint Mortgage since [ year ]. As of XX/XX/XXXX, my home 's current appraised value stands at {$320000.00}, while my loan balance is {$200000.00}, which would suggest a Loan-to-Value ( LTV ) ratio of approximately 63.56 %. Despite this, RoundPoint Mortgage continues to deny my PMI removal requests, stating that my LTV is still above the 80 % threshold. 

Issues : Repeated Denial of PMI Removal Requests : On XX/XX/XXXX, I submitted a reconsideration letter with comparables ( comps ) from my area showing that homes similar to mine sold for significantly higher than the appraised value provided by RoundPoint Mortgage. My request was denied without detailed documentation or adequate explanation. 
On XX/XX/XXXX, I requested an appraisal by one of their appraisers. Again, the appraisal undervalued my home, leading to another denial of PMI removal. 
Restriction on Hiring Independent Appraisers : RoundPoint Mortgage does not allow me to hire an independent broker to evaluate my home. They insist on using their appraisers, who consistently undervalue my property. 
Lack of Transparency and Documentation : RoundPoint Mortgage has not provided detailed documentation explaining why my PMI removal requests are being denied. The only reason given is that my LTV is above 80 %, which contradicts the market value and comps I have provided. 
Possible Discriminatory Practices : As XXXX homeowners, we suspect that RoundPoint Mortgage may be engaging in discriminatory practices. Our home is consistently appraised significantly lower than those of our neighbors with similar properties, affecting our ability to remove PMI and gain equity in our home. 
Updated Data and Calculation : Based on my current home appraisal of {$320000.00} and a loan balance of {$200000.00}, my LTV ratio is approximately 63.56 %. This LTV ratio is significantly below the 80 % threshold required for borrower-requested PMI cancellation and the 78 % threshold for automatic PMI termination, as per federal guidelines under the Homeowners Protection Act ( HPA ) of 1998. 

Given that my LTV ratio has already fallen below these thresholds, RoundPoint Mortgages continued denial of my PMI removal requests is unjustifiable.

Request for Assistance : I am seeking the CFPBs assistance to investigate RoundPoint Mortgages appraisal and PMI removal practices. I believe their repeated undervaluations and lack of transparency are not only unfair but may also be discriminatory. I request that the CFPB : Investigate the appraisal practices and the consistent undervaluation of my property by RoundPoint Mortgage. 
Ensure that I am provided with a fair and independent appraisal of my home. 
Hold RoundPoint Mortgage accountable for any discriminatory practices and ensure that they provide clear, detailed explanations for their PMI removal decisions. 
Thank you for your attention to this matter. I look forward to your prompt assistance in resolving this issue. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX

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