I have been trying to get Bank of America to removed the PMI or explain to me why they can't do it. THe loan is 8 yrs old and I have never been late. I have called their PMI department numerous time since June 7 to get clarification on why my PMI has not been automatically dropped per the Federal Homeowner's Protection Act of '98. I was told repeatedly I needed to pay for an appraisal to determine value. Since the loan was orginated in '03, this goes against the HPA guidelines set forth by President Clintion in 1998 which states lender is to automatically remove PMI when loan reachs 78% value of original loan. With each call, I get different info and a promise that the problem would be escalated. When I call back to check status, I am told that there is no record of the prior escalation request so the "new" CR promises to escalate the matter today. A letter will be mailed out in 7 to 10 days. Well, the dance continued until July 11 when a rep from their Greensboro NC office (336-333-7201) calls to tell me he has been assigned the matter and will have a response in 2 days. Well, he called back today to tell me that he got the same response from the PMI department and since they are specialist, he had to rely on their input which states I need an appraisal to get PMI removed from this 8 year long with current payments... After much arguing, I ask on what basis is he relying on. He tells me that the Truth IN lending statement I received at closing is not a contract therefore, he has to get a copy of the note to detail the specific language of the contract regarding how to remove PMI. However, from his experience, he has seen many loans where the lender had the borrower sign an additional document at closing that supersedes the HPA guidelines of 1998. A docuemnt which states that an appraisal is needed to remove PMI. He will have that pulled and mail to me in 5 to 7 days. NO kidding. For 1.5 months and numerous conversations with reps, at this escalated level, all I really get is more run around and being told to wait another 7 days for this report. I pay 64.13 for this PMI. Over 8 yrs, that 6156.48. My question is this. Are the banks so big and untouchable that they can do anything they want. Being small potatoes, how can I fight back? Are they relying on me just quitting knowing I don't have the resources to pay an attorney? Is there a local court I can appeal to that could adjudicate this matter? Is this a matter for a class action lawsuit? Botom line, does BOA have the right not remove my PMI if all the guidelines of the HPA guidelines are met? Is there really such a document that the lender could include in your closing docs that would override the HPA guidelines? What recourse do I have? Thanks - Feeling RIPPED oFF!
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