Mortgage Co. won't remove PMI.

[wildthing]

What is the name of your state? Indiana

In 2004 I got home loan through the Countrywide mortgage company. Because I only put 10% down I had to get PMI on the mortgage. In Nov. of 2006, after doing some major remodeling, I had my home re-appraised and the new appraisal put me owing 70% of my current mortgage. I contacted Countrywide about having the PMI removed from my mortgage and they gave me the address to send the new appraisal, it must be mailed, they would not accept a FAX. In Jan. 2007, 2 months after sending the appraisal, the PMI had not been removed. I contacted Countrywide again and they claimed they had not received the appraisal. At that time I sent it again by certified mail. 2 months later, March 2007, the PMI still had not been removed. I contacted Countrywide again and they claimed they had received the certified letter but a copy of the appraisal was not in the envelope. I sent 5 copies by certified mail and sent 5 copies by FAX. Last week I received a letter from them stating that the appraisal I sent was more than 90 days old and “a current appraisal is needed to determine my request for PMI deletion”. To avoid further complications they “recommend” I have an appraisal done by their appraiser, at a cost to me of $700, which is about $200 more than what I paid for the appraisal I got in Nov. 2006. This feels like extortion to me but I don’t know if I have any other options.
Does anyone have any suggestions?

 

[Just Blue]

Refinance with a Different Mortgage Company...Countrywidr sucks! EVERYONE I know who has had a mtg with them had trouble.

I am a Loan Originator, so I know a lot of people that did business with them.

 

[lcannister]

Bay is right about Countrywide and if your credit rating is such that you can then do refi elsewhere but...

From the

Homeowner's Protection Act of 1998

This law established rules for automatic termination and borrower cancellation of PMI on home mortgages. The law applies to a many residential mortgages signed on or after July 29, 1999, including refinances. It does not apply to government-insured FHA or VA loans or to loans where the lender paid for the PMI.

The Act calls for automatic termination when you reach 22% equity in your home (based on the original property value).

Your mortgage payments must be current, and you must not be considered a "high-risk" for default.

The PMI may continue if you have a poor payment history or if you have placed other liens on the property.

Borrowers must be told at closing and once a year about PMI termination and cancellation laws.

Mortgage servicers must provide you with a telephone number where you can call for information about termination and cancellation of PMI.

Lenders are obligated to tell borrowers who are not covered under the new law about the termination or cancellation rights they may have.

No matter when your loan was signed, you can ask to have the PMI canceled once you exceed 20% equity. You might also be able to cancel the PMI if you can show proof that your home has increased in value, but lenders often have a minimum wait time before they will accept such evidence--typically two years.

 

[XNavyLT]

Thanks for letting me know which company NOT to refi with.
What a scam!! Sorry about your problems with those extortionists....shheesh!!

 

[moburkes]

I'm sorry that you had so much trouble with them, BUT, MANY mortgage companies require that you use their appraiser so that they can be sure that it is a true appraisal, and not a fraudulent one. And, like lcannister said, they usually require a certain amount of time to pass first.

 

[nextwife]

Believe it or not, I've seen some local credit unions and banks offer portfolio loans without appraisal, if you are a strong borrower and the LTV based upon your tax assessed value is 70% or better. Think beyond mortgage brokers. I refinanced with NO appraisal, and no points using a service retained local loan because my LTV based upon the tax assessed value exceeded (well, WAY exceeded) 70%. And the great part is that I can swing past any branch drop off a mortgage payment AND get a receipt proving my loan was recieved on time..

 

[MyHouse]

I'm glad you wrote because I have had a similar problem with First Horizon. I've had no problems with them except with wanting to remove the PMI. They also wanted me to use their appraiser at a cost of $900. At that rate, it would take years for the appraisal to pay for itself. My house was appraised when I took out a home equity loan but First Horizon wouldn't take that. I'm interested in reading further responses to your question because I'd love to know if there is any way around this.

 

[lcannister]

I'm interested in reading further responses to your question because I'd love to know if there is any way around this.
Yesterday 05:28 PM

Actually there is nothing else to be said. If they require an appraisal they require an appraisal.

 

[MyHouse]

What I meant was this... Is there any way around having to use THEIR appraiser?

 

[moburkes]

What I meant was this... Is there any way around having to use THEIR appraiser?

All you can do is ask. There is no law that states it is illegal, what they are asking for.

 

[nextwife]

What I meant was this... Is there any way around having to use THEIR appraiser?

I sincerely doubt your HELOC appraisal was sufficient for a first mortgage. The HELOC lender has less risk, and they often use drive by, or limited apparisals.

 

[LindaP777]

...Countrywide sucks! EVERYONE I know who has had a mtg with them had trouble.

Imagine my dismay when two of my recently refinanced mortgages (non-owner occupied) were sold to Country Wide!