• Report: #909445

Complaint Review: Wells Fargo Home Mortgage

  • Submitted: Tue, July 10, 2012
  • Updated: Wed, September 12, 2012

  • Reported By: kelley — Tonganoxie Kansas United States of America
Wells Fargo Home Mortgage
1 Home Campus Des Moines, Iowa United States of America
  • Phone: 800-853-8516
  • Web:
  • Category: Loans

Wells Fargo Home Mortgage Won't Cancel PMI Des Moines, Iowa

*General Comment: I am in the same boat

*Consumer Comment: I HATE Wells Fargo.....

*Consumer Comment: Wells Fargo Refusing to Eliminate my PMI

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We refinanced our house in September 2010 to get a lower interest rate and shorten our loan term. At that time, our LTV was slightly higher than 80% resulting in PMI. Our original loan documents included a

Private Mortgage Insurance Disclosure Fixed Rate Mortgage document that stated PMI would be cancelled (upon our request) when our LTV reached 80% on July 1, 2012. The document goes on to state that PMI would be automatically terminated on March 1, 2013, when our LTV reaches 78%. We contacted our current lender, Wells Fargo Home Mortgage, to request cancellation of PMI. We were told that the PMI could not be cancelled until our LTV reaches 75% despite the terms set forth in our legally binding contract. Keep in mind that our payment history is 100% on time with automatic payments through Wells Fargo and our loan is not high risk. Also, Wells Fargo even included these same guidelines, citing the Homeowner's Protection Act of 1998, when it sent out our projected escrow balance and payments for the year! Yet they refuse to cancel our PMI until we reach 75% LTV!

So, after getting nowhere with Wells Fargo, we filedcomplaints with the Kansas Attorney General, the Better Business Bureau, the Federal Trade Commission, the Consumer Financial Protection Bureau, and Comptroller of the Currency. Wells Fargo responded twice to these complaints but stand by their insistence that we must reach 75% LTV in order to cancel PMI. Thomas Ellingworth sent a response on June 19, 2012, in which he contradicted himself and included half-truths. The letter stated that we are required to maintain PMI until the LTV reaches 80% but the documents he attached, as well as one of the options in his letter, stated that we need an LTV of 75%. He also stated that an appraisal is "required" when the Homowners Protection Act says the appraisal is needed only if the mortgage company requests it - it is not a requirement.

Two of the options he included require appraisals, which would establish current value. One option would require 75% LTV while the other requires 80% LTV. If that isn't confusing enough, the Appraisal Order Authorization he included in his letter DOES NOT offer the 80% LTV option. 

Kelly Wilkins with Wells Fargo called on July 9, 2012, at 5:44 pm to discuss our complaint. She still insists that they can require 75% LTV before cancelling PMI even though the signed Private Mortgage Insurance Disclosure document from our loan contract says 80% LTV is all that is required. She had no explanation as to how the 75% was decided except that its a requirement of Fannie Mae. (Fannie

Mae regs website clearly states 80% LTV http://www.allregs.com/tpl/Main.aspx) I pointed out that we have NO signed contract regarding the 75% LTV so how can they change the terms of our contract without our permission? Further, she attempted to walk back the Automatic Termination of PMI section of the contract that states that PMI will automatically terminate on March 1, 2013 by saying termination is not automatic despite what our contract states. This is breach of contract. Just because Wells Fargo is a huge bank doesnt mean they can treat people like this. They MUST follow the terms of a signed contract they CANNOT make unauthorized changes! Wells Fargo purchased our loan, we did not seek a loan from them. They purchased our loan in total and must follow the terms of the loan in total. The only protection we have is our signed contract and have every right to expect that the terms of a legally binding contract are honored.

Wells Fargo must be held accountable for this breach of contract. We would welcome the opportunity to pursue legal action but, as one customer, we dont have the financial resources it would take to fight them in court. If a class action lawsuit develops, we will immediately join.

What this boils down to is this: we have signed loan documents stating that we can request cancellation of PMI when our LTV reaches 80% on July 1, 2012 and that it will be automatically terminated when our LTV reaches 78% on March 1, 2013. There are NO documents, containing our signatures, that mention anything about a 75% LTV requirement. In addition, we have made our loan payments 100% on time. Nothing Wells Fargo reps say changes these facts. The double-speak, half-truths, and outright lies serve only to confuse borrowers and set up smoke screens these banks hide behind in order to cheat the consumer. The three times I called Wells Fargo regarding this issue, I spoke with customer service people who offered refinancing as a way to remove PMI immediately. Everyone one of them made this offer. However, NONE mentioned the 80% LTV option - all insisted we had to reach 75% LTV. So, they won't cancel our PMI at 80% LTV, but we can pay to refinance and that would take care
of the issue. What we are going to do is refinance but with a local bank that does not sell their mortgages. If enough consumers can do this, big banks like Wells Fargo will be forced to change their deceptive practices and begin to value customers once again.

This report was posted on Ripoff Report on 07/10/2012 12:01 PM and is a permanent record located here: http://www.ripoffreport.com/r/Wells-Fargo-Home-Mortgage/Des-Moines-Iowa-50328/Wells-Fargo-Home-Mortgage-Wont-Cancel-PMI-Des-Moines-Iowa-909445. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 General Comment

I am in the same boat

AUTHOR: Michael - ()

I am in the same boat.  I bought a house that was in forclosure and got a sweet deal deal.  I paid 60k for a house that appraised for 78k.  I got a letter that said my escrow was going up so I did some investigating. The escrow was increasing due to a hike in my insurance, so while investigating I noticed I was wasting money on PMI.  I called and sough how to eliminate PMI.  I was told that I had to pay for an apprasal and the value of my home had to be 74k.  I told the person on the phone that when I bought the home it already appraised for more that the 74k required.  That didnt matter, I had to pay their approved vendor for an apprasial.  I played the game and paid for an apprasial and it came back that my house was valued at $90k.  Today I got a letter in the mail telling me that eventhough my loan to value was at 62%, they could not remove PMI unless I could show receipts that showed what structural improvements were made that totalled $14K.  In shock, I called.  They were pointing the finger at Fanny Mae.  I too did not get my loan from Wells Fargo, they bought it.  In shock and very upset that a hard working American can be subject to this treatment.  I to will join any class action law suit against this injustice!!

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#2 Consumer Comment

I HATE Wells Fargo.....

AUTHOR: Corey - ()

Im having the EXACT same problem with them right now... I refinanced back in June of 2012 with them and I knew it was a mistake and should of listened to my gut. I hated them when I banked with them and thats why I left! I KNEW I should of never come back. When I refinanced the lady told me that I would be able to remove my PMI in January of 2013 and that I was barely over. I thought ok cool I will be able to call and they'll remove it no problem. Well I should of known this was going to happen.... I called and they tell me no you have to have it down to a 75% LTV and that if I wanted to remove it I could pay them $18,900!!! and then they would remove it! Are you kidding me!!! They're all LIARS and treat you like trash when you call them, and they will not listen to you under any circumstance. I have been in my house 9 years now and have never had even ONE late payment. I HATE them and advise EVERYONE to stay away from them!
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#3 Consumer Comment

Wells Fargo Refusing to Eliminate my PMI

AUTHOR: mhefner - (United States of America)

I am having the same problem.  I live in Texas and had requested my PMI to be dropped.  Wells Fargo sent me two letters informing me how to get it dropped which was confusing number one and second, seemed to contridicte itself.  When I called for additional information from the Customer Service Department PMI division, they couldn't answer my questions.  One of the requirements is that I pay them 379.00 to have the house appraised and that I had to use THEIR appraisor which doesn't protect my interest at all.  They continue to tell me I am at 79.9 % each month when I make a payment, but due to the housing market they want to ensure that my house is still worth what I originally purchased it.  I submitted their form on 8/20/12, they confirm receipt and faxed it to the appraisal department on 8/21/12.  However, I have called several times inquiring how long will it take to get the appraisal and no one can tell me anything.  I'm still waiting and I am at a loss as to who is helping those of us who don't have an attorney on staff.  I contacted several organizations who are supposed to help the consumer, however, they want me to file a complaint, then wait on WF to respond which ends up being a waiting game that I will end up paying the price for.  I am hoping someone will see this and help those of us that need it.
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