No Wonder They Will Not Cancel My PMI Insurance
 

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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Re: No Wonder They Will Not Cancel My PMI Insurance
 

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.

Re: No Wonder They Will Not Cancel My PMI Insurance
 

[quote=FRPLG;785483]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.[/quote]

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.

Re: No Wonder They Will Not Cancel My PMI Insurance
 

I [B][I]beleive[/I][/B] all Navy Federal Loans don't require a PMI.

Re: No Wonder They Will Not Cancel My PMI Insurance
 

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?

Re: No Wonder They Will Not Cancel My PMI Insurance
 

[quote=firstdown;785488]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.[/quote]

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?

Re: No Wonder They Will Not Cancel My PMI Insurance
 

[quote=mredskins;785531]I [B][I]beleive[/I][/B] all Navy Federal Loans don't require a PMI.[/quote]

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%.

Re: No Wonder They Will Not Cancel My PMI Insurance
 

[quote=FRPLG;785534]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?[/quote]
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.

Re: No Wonder They Will Not Cancel My PMI Insurance
 

[quote=firstdown;785547]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.[/quote]


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.

Re: No Wonder They Will Not Cancel My PMI Insurance
 

[quote=redsk1;785561]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.[/quote]

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.