Cancelling PMI... LTV of 75, 78, or 80% ?

[crwth]

I refinanced my house in March of this year, made extra principle payments to get the LTV less than 80% and then called asking the procedure to cancel PMI. First person I talked to said 75% if I made improvements, stating policy changes, etc. I called again and later received a letter stating LTV must be 78%. I responding with the HPA of 1998 and copy loan documents stating 80%. Wells Fargo replied saying basically that because the mortgage was sold to an investor, that the LTV had to be less than 75%. I live in AL. My questions are: What does the LTV have to be, and can I sue in small claims court for violation of the HPA?

[nextwife]

And what is the current value of the house in relation to the loan? Have you considered simply refinancing? Many brick and mortar lenders offer in house low-no point loans.

[crwth]

My current LTV is 79.8 %, and I talked with the company again and received some clarification. According to Wells Fargo, my only option when I refinanced in March was to pay down to 78% and the PMI would automatically be removed. When the mortgage was sold to them I had the additional option to have made home improvements and have it appraised with a 75% LTV for PMI removal. I questioned the person about the option that is in my loan documents that states I could request to have it removed at 80% LTV, and was told “it doesn’t matter” what you loan documents say, these are your only options now. I kept referencing my documents and the HPA that both state I can request at 80% and continued to get the response it doesn’t matter what those say, these are your only options. So does this merit grounds for suing Wells Fargo?

[crwth]

Originally Posted by nextwife

And what is the current value of the house in relation to the loan? Have you considered simply refinancing? Many brick and mortar lenders offer in house low-no point loans.

No offense to the user who posted this, but they were not very helpful, and I still have unanswered questions.

[bannonr]

Nobody should have ever told you it doesn't matter what your papers say. The LTV (Loan/Value) is one of the components to removing PMI. I work for Wells and would be happy to help you. 908-758-5763