No Wonder They Will Not Cancel My PMI Insurance

[firstdown]

My mortgage is about half of what my homes value is in this market but I cannot get Wells Fargo to drop my PMI insurance. I have tried several times and I just get the run around but now I know why. They have to pay for this.

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[FRPLG]

Well they are legally required to drop your PMI if you request so as long as you have 20% equity and a good payment history. They don't have the option of giving you the run-around.

[firstdown]

Originally Posted by FRPLG

Well they are legally required to drop your PMI if you request so as long as you have 20% equity and a good payment history. They don't have the option of giving you the run-around.

Well they seem to be on the run-around option. Never been late on a payment and I have about 50% equity in the home. What they keep telling me is that I have to be 20% below the original loan amount. I'm not even sure why they added PMI from the start because I was 20% below the original appraisal when I purchased the home.

[mredskins]

I beleive all Navy Federal Loans don't require a PMI.

[redsk1]

Yes, it's 20% of the original sales price not current value. If you've done improvements that add sq. ft. you can argue to get a new appraisal. It's a pain to deal w/. Once you get to 20% of your original sales price they have to get rid of it.

You could refinance, but not sure it would be worth it for you in regards to rate, etc. I would guess you are pretty close to being at 80% loan to value?

[FRPLG]

Originally Posted by firstdown

Well they seem to be on the run-around option. Never been late on a payment and I have about 50% equity in the home. What they keep telling me is that I have to be 20% below the original loan amount. I'm not even sure why they added PMI from the start because I was 20% below the original appraisal when I purchased the home.

That's not even legal. They cannot charge PMI if you have 20% equity per the '98 HPA. You must not be understanding something. How are you defining equity?

[redsk1]

Originally Posted by mredskins

I beleive all Navy Federal Loans don't require a PMI.

Not sure, but if you don't have monthly pmi you are paying for it in some form or fashion (like rate) if you are over 80%.

[firstdown]

Originally Posted by FRPLG

That's not even legal. They cannot charge PMI if you have 20% equity per the '98 HPA. You must not be understanding something. How are you defining equity?

I've read the law but it seems Wells Fargo uses what ever they want to use as original home value. First they said I had to be 20% under the original appraisal which I'm way under and when they realized that they said I had to be 20% under the purchase price. When they noticed I was 20% under that they then said I had to be 20% under the original loan amount. I could easily get it removed if I pay for a new appraisal but with how the law reads I should not need one.

[redsk1]

Originally Posted by firstdown

I've read the law but it seems Wells Fargo uses what ever they want to use as original home value. First they said I had to be 20% under the original appraisal which I'm way under and when they realized that they said I had to be 20% under the purchase price. When they noticed I was 20% under that they then said I had to be 20% under the original loan amount. I could easily get it removed if I pay for a new appraisal but with how the law reads I should not need one.

Yea, it's the Homeowners Protection Act of 98. You can request to cancel at 80% loan to value of the original value of the property. The lender, based on payment history, can grant or continue to collect until the final termination date which is 78% of the original value.

After 78% loan to value the lender owes you any money collected for PMI. Penalties for individual actions up to $2000.

This is for conventional loans...not gov't like FHA.

[firstdown]

Originally Posted by redsk1

Yea, it's the Homeowners Protection Act of 98. You can request to cancel at 80% loan to value of the original value of the property. The lender, based on payment history, can grant or continue to collect until the final termination date which is 78% of the original value.

After 78% loan to value the lender owes you any money collected for PMI. Penalties for individual actions up to $2000.

This is for conventional loans...not gov't like FHA.

I understand all of that but when a bank is making up the rules as they go what can you do or who to call. The number I was given to complain (not sure if that was a state or federal agency) have not returned any of my phone calls. We are currently looking to move so they kind of have me. I'm not going to pay $350 for another apprasail (which I should not need) to save $43 a month on PMI ins. on a house that I will probably not be in this time next year.