Phone Tag

Summary

My wife and I tried to get PMI removed from our Wells Fargo Home Mortgage (WFHM) loan via the 80% LTV rule in the Homeowners Protection Act (HPA) of 1998.  WFHM first refused to acknowledge that there was a provision, so we paid down to 80% and demanded cancellation.  WFHM played dumb and told us that we had to pay down to 78%.  We said enough, already cancel or we'll complain to the Office of the Comptroller of the Currency (OCC).  WFHM then said, oh yeah, you actually CAN request cancellation at 80% but you need to get an appraisal.  HAHA.

We complained to the OCC.  WFHM finally noticed and assigned an Executive Mortgage Specialist to be our POC.  Now we're playing phone tag.

We had called a customer service representative, sent six faxes, and received two form letters that did not address our questions over the last six months.  I believe that WFHM has violated several parts of the HPA, including timely response back after requesting PMI and not identifying the type of evidence required to prove that the property value had not declined.  They also refused to acknowledge that the borrower can initiate a request from PMI cancellation when the LTV reaches 80% for over six months, leading to seven months and counting of extra PMI payments.

Executive Mortgage Specialist

I had a message from the Executive Mortgage Specialist on August 29, 2012.  I left a message back the following week with my cell phone number.  I think we missed calls again, so I left my work number later.  We finally spoke on September 17, 2012, almost three weeks after the first call.

As usual, I was optomistic that I could use logic and facts to show where WFHM had been wrong.  I was hoping that we could resolve the issue together.  Instead, I got more script-following.  The specialist repeatedly said that she could understand my frustration, but that WFHM would need a current appraisal to go forward.  Once again, this is something that I would have liked to have hear SEVEN months ago when I first called (2/7/12).  She gave me three options.

1. Automatic termination of PMI if we pay to 78% LTV
2. Cancellation if an appraisal or Brokers Price Opinion comes in high enough to give us 80% LTV.  Of course, we have to use WFHM-approved appraisers.
3. Appraisal that shows 75% LTV in the case of structural improvements.

I tried one last appeal to humanity, explaining that because WFHM had not been able to get correct information to me for months, the value has probably dropped, whereas it would have been ok or much closer if we had done it when I made initial contact.  I asked if they we pay for the appraisal, which seemed like the least they could do.

Of course, I was told that WFHM can understand my frustration, but they needed a current valuation to go forward.

That's got to be a tough job.

Tag, You're It

Right after that call, I decided to document everything in a blog.  But first, I wanted to confirm which faxes had actually been received by WFHM.  I didn't want to unfairly accuse them of not responding to something that they had not received.  As I mentioned, we sent at least seven faxes, but only received three replies.  I'm sure that some of them did not make it.  However, I have still not heard back as of 9/18/12.

So Now What?

My goal is to document everything that happened.  I want to give others in the same position some information that they can use to get their PMI removed, because clearly the banks aren't going to help.  I want people to know how I've been treated by WFHM.  It hasn't been horrible, but it shows a pattern of borderline incompetence.  Clearly, it is not in their business interest to help their consumers remove a bogus fee (PMI).  I'd like to make enough of an issue of this that it becomes their business interest to do the right thing.

Finally, I believe that WFHM has violated the HPA.  They did not identify the type of evidence required to prove that the value of the property had declined.  They did not respond within 30 days of my request to cancel PMI.  They refused to provide information on cancelling PMI per the 80% LTV borrower-initiated PMI cancelation requirement.

I don't know if there is enough to merit a legal case, but I will find out.  I hope that it won't come to that, that WFHM will realize that they have made a mistake (multiple), and will refund PMI back to February when I initiated the request for information.  Based on their previous pattern of behavior, I'll have better luck winning the lottery (and I don't play it).

I welcome any comments.  I especially welcome any corrections from or comments from WFHM.