Reasoning with the Machine

Summary

By June 1, 2012, we've confirmed via Wells Fargo Home Mortgage (WFHM) website and Homeowners Protection Act (HPA) on 1998 that we can request PMI deletion when we reach 80% LTV.  WFHM will not acknowledge this fact and insists that we pay to 78% LTV or have an appraisal done showing that structural improvements have increased the value to 75% LTV via customer representative in February and two form letters in Feburary and May.  At least they are consistent.

Final Attempt

I'm patient, but now I'm starting to realize that faxes aren't going to get anywhere.  Like a lot of people, I dislike conflict, so I'm hoping that a final strongly worded letter can make someone at WFHM see reason.  Go ahead, laugh.

The Letter

On July 9, 2012 we fax another letter.  This time, we quote the HPA (again) and show that we've met the requirements.  We demanded (yea verily) that PMI be removed effective our original request date in May.  Further, we said that if we do not hear back in 10 days, we will submit a complaint with the Office of the Comptroller of the Currency (OCC).

10 Days Later

Do you think WFHM caved in and removed our PMI?  Of course not!  We didn't hear a peep.  I went back in mid-August and checked the transmission log, and it looked like the letter never made it.

Summary so Far (8/15/12)

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? 
12. I sent the final fax threatening to complain to the OCC on 7/9/12.  We went on vacation and did not hear back.  I noticed that the fax might not have gone through in mid-August.  That fax system sucks.