Lender changed PMI rate after closing...?

[esiffing]

What is the name of your state? New Mexico

We recently purchased our first home and the loan was sold to another bank (Bank B) by our first bank (Bank A). Bank B changed our PMI rate after the sale of the loan. Do we have any rights to contest this?

Our loan officer at Bank A has referred us to the "Compliance Agreement" we signed at closing which states that, if requested, we will "cooperate and adjust for clerical errors, any or all loan closing documentation if deemed necessary or desirable in the reasonable discretion of the Lender to enable Lender to sell" said loan to any entity.

But, we never received any requests, just notification of the increase. And it seems that in several other areas of the Note and Mortgage there are clauses which prevent the increase of the amount we've agreed to pay for PMI. Such as, we have a doc re: transfer / sale of loan which states that "Your monthly payment amount has not changed and consists of:" and includes the initial PMI amount. In addition, at closing, Bank A minimized the importance of the compliance agreement... we had no idea that any of our agreed payments could change!

Any info will be greatly appreciated. Thanks!

 

[HomeGuru]

What is the name of your state? New Mexico

We recently purchased our first home and the loan was sold to another bank (Bank B) by our first bank (Bank A). Bank B changed our PMI rate after the sale of the loan. Do we have any rights to contest this?

**A: yes and please do.
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Our loan officer at Bank A has referred us to the "Compliance Agreement" we signed at closing which states that, if requested, we will "cooperate and adjust for clerical errors, any or all loan closing documentation if deemed necessary or desirable in the reasonable discretion of the Lender to enable Lender to sell" said loan to any entity.

**A: the intent of this condition is to make sure that the borrower cooperates with signing additional documentation if there were errors in the first to prevent the sale of the loan to another entity etc.. The intent was not to charge additional fees to the borrower or increase the monthly payments. Using the lender's interpretation, could the lender increse the interest rate say to 15% interest to offer a better return and make the loan more saleable to lender B.
No way. Hogwash.
**********


But, we never received any requests, just notification of the increase. And it seems that in several other areas of the Note and Mortgage there are clauses which prevent the increase of the amount we've agreed to pay for PMI. Such as, we have a doc re: transfer / sale of loan which states that "Your monthly payment amount has not changed and consists of:" and includes the initial PMI amount. In addition, at closing, Bank A minimized the importance of the compliance agreement... we had no idea that any of our agreed payments could change!

Any info will be greatly appreciated. Thanks!

**A: contact HUD for the correct Federal office to complain to.