Wells Fargo My PMI should cancel at 80% LTV not 65%!!! Des Moines Iowa

Wells Fargo is trying to change the terms of my loan. They say that since my loan is for an investment property the LTV needs to reach 65%, the only way to do that is to fork over $14,000! Here are the facts.

I refinanced my property in 2003. The Truth In Lending Disclosure Statement (form VMP-788) states "PMI will automatically terminate on the date the principal balance of your loan is first scheduled to reach 78% of the original value of the property."

Under the "Purpose of Loan" portion of the Uniform Residential Loan Application (form VMP-21), the box checked is "Investment".

The Notice Concerning PMI - Initial Disclosure- Fixed Rate Mortgages (form VMP-976) states that PMI will automatically terminate when the balance reaches 78% of the original value of the property.

So I'm right, when the LTV reaches 80% I can request PMI be deleted. When I called to inquire they told me that since this is an investment the LTV needs to be 65%. When did the mortgage industry get the right to change the terms of my contract on me?!

Maria
Charlotte, North Carolina
U.S.A.