Wells Fargo
My PMI should cancel at 80% LTV not 65%!

Wells Fargo is trying to change the terms of my loan. They say that since my loan is for an investment property the LTV needs to reach 65%, the only way to do that is to fork over $14,000! Here are the facts.

I refinanced my property in 2003. The Truth In Lending Disclosure Statement (form VMP-788) states "PMI will automatically terminate on the date the principal balance of your loan is first scheduled to reach 78% of the original value of the property."

Under the "Purpose of Loan" portion of the Uniform Residential Loan Application (form VMP-21), the box checked is "Investment".

The Notice Concerning PMI - Initial Disclosure - Fixed Rate Mortgages (form VMP-976) states that PMI will automatically terminate when the balance reaches 78% of the original value of the property.

So I'm right, when the LTV reaches 80% I can request PMI be deleted. When I called to inquire they told me that since this is an investment the LTV needs to be 65%. When did the mortgage industry get the right to change the terms of my contract on me?!

Company: Wells Fargo
Country: USA
State: Iowa
City: Des Moines
Address: 505 5th Ave, Ste 950
Phone: 8662348271

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