A Response from Wells Fargo Home Mortgage

Summary

By now, we've received inaccurate information about the Homeowners Protection Act (HPA) from Wells Fargo Home Mortgage (WFHM).  It wasn't a lie so much as an omission.  They neglected to tell us that we could request to cancel our PMI once we reached 80% LTV, even after I specifically asked them about it, noted that it says we can on their website, and finding the appropriate law that says we can.

So we paid principal down to 80% and requested that WFHM delete our PMI on May 8, 2012 because we had met the requirements of the HPA.  Because it was via fax, we weren't sure that the message had been received, especially because we didn't get a response.  We include our address, phone number, and email.  We sent the request two more times on May 23 and 24.

A Response!

We received a letter from WFHM in early April.  Surely this was the confirmation that our PMI had been deleted because we had the facts and law on our side, right?  Of course not.  This was the same form letter as before saying (and I paraphrase):
Thanks for asking about deleting PMI.  Pay it down to 78% LTV or make structural improvements to get it to 75% LTV.  And here is the appraiser that you have to use.

It was a word-for-word copy of the February 7, 2012 form letter.  It still did not address the 80% LTV requirement. It also did not request an appraisal, except in the case of 75% LTV for structural improvements.  This comes up again later.

Our Response

At this point, WFHM has not even acknowledged our original requests to cancel PMI.  They must have received the requests, because they did send a form letter back that did not address my request.  I decide that I must not have explained the HPA very well (it is kind of hard to read), so I should send a better letter.

Summary so Far (6/1/12)

1. We were told at loan origination that we could cancel PMI when we reached 80% LTV
2. We have enough money to pay our loan to 80% LTV
3. I found a statement on the Wells Fargo Home Mortgage website that stated we could request cancellation of PMI when we reached 80% LTV
4. I called a customer service rep to confirm, but was told we needed to get to either 78% LTV or 75% LTV with appraisal (???).  I was told to fax Resolutions to ask about the 80% requirement.
5. I researched the HPA and verified that I could request PMI cancellation at 80% LTV.  I also found that HPA requires evidence of a type established in advance that property value has not declined.  Not only was the evidence type not established in the PMI disclosure, but the requirement to provide evidence was made optional.
6. I prepared a fax that included a printout of the Wells Fargo Home Mortgage website where they acknowledge that a borrow can request cancellation of PMI at 80% LTV.
7. I received a form letter telling us that we could remove PMI at 78% LTV (per HPA) or 75% LTV with structural improvements and an appraisal (per investor requirements).  It neglected to mention the 80% borrower-initiated cancellation option allowed by the HPA.  Must have been an oversight...
8. We made a principal curtailment to 80% LTV on 4/30/12
9. We wrote a letter requesting PMI deletion and faxed on 5/8/12.
10. No response after two weeks, so we faxed another request to delete PMI on 5/23/12 and a third request on 5/24/12.
11. WFHM responds on 5/29/12 with the same form letter as 2/7/12.  It does not acknowledge our written request to cancel PMI.  It does not say anything about the option to request PMI cancellation at 80% LTV.  Willfully disregarding law, inept, or clever?