No Wonder They Will Not Cancel My PMI Insurance

[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.