Wells Fargo Home Mortgage purchased my mortgage loan shortly after I moved into my house in 2002. I've never been late with a payment in 5 years. I've paid extra on my principal knowing at some point I could get rid of PMI, Private Mortgage Insurance. I read all the documents before signing my documents to be sure I understood everything.
In 2004, I called and asked if my PMI could be removed, since my home value had increased significantly. I was told, no. I had to pay for 5 years. I referred to the mortgage paperwork, it says that it can be removed if the value of the property to Loan was less 78% or I've Paid Extra on the principal, which I had. Cynthia said that they would not remove it until 5 years worth of payments were made. I had only paid 2.
In summer of 2005, a disclosure notice came in my with my mortgage statement and again I thought based on the discloser information I could get my PMI removed. I called and talked with John, and John said no, I had to make 5 years worth of payments and then my PMI requirement would be removed from my mortgage automatically.
At this point I'm only at year 3, and I asked if I made 2 years worth of payments the next day if the PMI would be removed. He said yes. I did not do that, because I couldn't and besides if I could I'd just pay down the principal. I did look into refinancing with rates low, but I have a low rate and paying $1000 in PMI for 2 years or $5k in closing costs, it was better to stay with my current mortgage.
In 2006, my house had increased in value by $90k. I called again, the rep suggested I refinance with their low paperwork and waived fees. That is the subject of another complaint, where Wendy altered the disclosure statements to say Zero but right before closing said I had to pay $5k. Lucky for me I did not need to refinance so I walked away and launched complaints about that process. So I'm still in my original mortgage.
In July 2007, I called and talked with Thomas, he said the PMI could not be removed and he tried to end the conversation there. I stated that's not true. My $200k home is worth $340k and I've almost finished paying 5 years. I was told my PMI would automatically come off but it's on my escrow estimated charges for the next year, which had just arrived in the mail. Thomas then said if that's the case, if I filed out paperwork and had a Wells Fargo appraiser come out for a $300-$400 cost that they would remove the PMI. That was cost effective, since I'm paying $82 PMI. But I still had to pay 5 years worth of payments. He said that I could do that after Oct 1st. I said I'd call back for the paperwork to be sent.
Sept 12th, 2007, I called and spoke with Lacey and asked for the paperwork for the appraiser to come out so I can have my PMI removed. Lacey stated, oh yes, you have almost completed 5 years of payments and never been late, however we can not remove your PMI. I told her what Thomas said in July and what the other reps had said since 2004 and that, by law, she needs to provide me with what I need to do to remove the PMI. I asked to speak with her supervisor. I talked with David, who was nice, and spent 20 or 30 minutes on the phone with me looking up paperwork. His answer was that no they could not remove the PMI because I have an FHA mortgage. He said I'd need to have paid another $30k on my principal and then the PMI would automatically fall off, but that an appraisal would not remove the PMI. I asked for paperwork in writing under what circumstances I can get the PMI removed. Had they told me this 3 years ago I would have been making larger principal payments or did a refin. Now I'm still better staying with my current mortgage.
I talked with Countrywide about a refinance and they said that Wellsfargo has the option of removing the PMI and they are lying to me.
I'm searching for my original paperwork and waiting for the written statement from Wells Fargo. The research on the web says much has to do with the company that owns your mortgage but that it could be the Original Loan amount.
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