PMI difficulties

Author: Ashley

1 Mar

Do you remember the other day, how I requested my PMI be removed? I got a letter on Friday that said I have to send them a check for $130 for an appraisal. Which is not how I understand the law. The law says: For home mortgages signed on or after July 29, 1999, your PMI must - with certain exceptions - be terminated automatically when you reach 22 percent equity in your home based on the original property value, if your mortgage payments are current. So it seems to me that making me pay for an appraisal is against the law. I mean, maybe I’m reading into it too much, but the word automatically makes me think I shouldn’t have to do anything to have it removed. Besides, what difference does it make? I have reached 22% equity based on the original property value so who cares what the property is worth today. Plus, I don’t trust their appraisal company, they work for the very people who benefit from me having PMI.

So I filed a complaint with the FTC. I filled out a form online and it was very painless. I’m curious to see what happens next.

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PMI update

Filed under: PMI

2 Responses for "PMI difficulties"

"Future Millionaire" March 3rd, 2008 at 1:49 am 1
Best of luck with your complaint. And congrats on getting to the point were you don’t need PMI!
Ann May 10th, 2009 at 9:07 pm 2
The bank is probably fearing (assuming?) that, in this market, the value of the home has gone down. So they probably think that you’d have trouble paying off the loan for the original value. Of course, that’s faulty logic and shouldn’t have anything to do with the PMI. Looks like they’ve stepped too far over the line. If your mortgage holder has a customer service or retention manager, I’d suggest trying file a complaint through them as well.