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Author: clausiam One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127697  
Subject: PMI Premium on payoff statement Date: 2/16/2011 10:38 AM
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I'm refinancing my home and just got my payoff statement from CitiMortgage. I've been paying PMI on this loan and on the payoff statement which is 2/1/11 to 3/1/11 I see 3 months of PMI premium listed as part of the payoff.

I can understand the 2 months - PMI is paid in arrear (or so they told me, which actually seems a bit strange) so it would include the current month and last month (which I have paid but the premium has not been disbursed out of my escrow account yet so they have to include it on the payoff statement). But I don't understand the 3rd month. I called them and they called this the "final PMI payment" which to me is basically a fee of one months premium for nothing. Can they do that?

The only other explanation I can see is that the payoff statement goes to 3/1, so I suppose it could be because they consider the month of March to be part of the period when I have my loan. I couldn't get a clear answer on that from them (or their phone support person had no clue).
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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 119872 of 127697
Subject: Re: PMI Premium on payoff statement Date: 2/16/2011 12:11 PM
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The only other explanation I can see is that the payoff statement goes to 3/1, so I suppose it could be because they consider the month of March to be part of the period when I have my loan.

Yes, once you roll to the first day of another month, that's considered an entire month.

AJ

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Author: home135 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124585 of 127697
Subject: Re: PMI Premium on payoff statement Date: 1/25/2013 10:31 AM
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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.

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Author: reallyalldone Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124586 of 127697
Subject: Re: PMI Premium on payoff statement Date: 1/25/2013 10:39 AM
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From my experience, they can do pretty much whatever they want.

They can try. My late husband and I were co-borrowers on a couple of mortgages. All but one were easy to get his name removed. The last one took about a year and the intervention of the state attorney general.

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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124587 of 127697
Subject: Re: PMI Premium on payoff statement Date: 1/25/2013 10:48 AM
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What can an individual do against a bank empire?

Find a hungry publicity-seeking lawyer who'll work on spec and sue. It's not terribly long ago that a BofA victim got a default judgment and showed up at a branch with the sheriff to seize the assets. Made the national news.

Phil
Rule Your Retirement Home Fool

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Author: crackdclaw Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 124600 of 127697
Subject: Re: PMI Premium on payoff statement Date: 1/25/2013 4:29 PM
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I've searched for class action suits against Citimortgage. There are a couple out there but none that involve shady PMI practices.

I recognize it's popular right now to hate banks, but the PMI is probably not issued by Citibank. There are several independent companies that provide the bank mortgage insurance. The bank collects the premium in the mortgage and passes the money on to the PMI company who insures the loan.

You're going thru your servicer Citi, and they should be representing your interests to the PMI company that is used. So if you're gonna hate, hate for a valid reason.

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