UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: home135 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127693  
Subject: Re: PMI Premium on payoff statement Date: 1/25/2013 10:31 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I received a payoff statement as well from Citimortgage. It is good through 2/1/13. It also includes 3 months of PMI. I got the same type of explanation which seems bogus.

You asked if they can do that. From my experience, they can do pretty much whatever they want.

My loan is at 60% LTV. I have sent multiple letters to the PMI cancellation department to request that the PMI be dropped from the loan over the course of the past 2 years. I also cited the Homeowner's Protection Act of 1998, which basically outlines the rules for cancelling PMI. I've met all of the rules. Can you guess what their response was?

They told me that I may never be able to cancel PMI on the loan. I've never been late with a payment nor is my loan a High Risk loan that would not qualify. So just like with this payoff statement, they will make up reasons to avoid following the law.

What can an individual do against a bank empire? A class action suit is the only thing that I know of to try and make them pay up. I've searched for class action suits against Citimortgage. There are a couple out there but none that involve shady PMI practices.

My advice is to either put 20% down on your next loan, or try to wait until you can buy a house without the aid of a mortgage. These options obviously aren't possible for most home buyers. But from my experience an individual can't fight a bank regardless of the circumstances.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

The Deflationary Cycle Explained
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement