My loan was in good standing when it was transferred to LBPS. Business Services (A division of IBM) now re-branded as SETERUS. From the beginning IBM / Severus offered little in the way of knowledgeable customer service. Most of the representatives on the phone are rude and do not have a great deal of knowledge. Seterus recently told me that I could have PMI removed from my mortgage once I reached 80% of the principal on my original loan amount. After I transferred the money they changed their mind and told me that they would most likely not remove the PMI and that I would have to pay for an appraisal.
Now I am aware that once the original loan value reaches 77% that they must automatically remove the PMI but I wanted to see if they would offer this as an option. The first customer service rep was rude and told me that under no circumstances would they remove the PMI without an appraisal. I then wrote a letter to Setarus requesting that they return the money that they had coerced from me and give me a written explanation of how to remove PMI from my loan. Nearly two months later they returned most of the money with a written explanation but never mentioned the 77% as an option. They are also assessing late fees for on payments not made during the time that they held my 34K hostage. AMAZING!
Here is a company with an underwater mortgage and a current customer who not asking for anything but to help shore up their position by giving them additional principal. I can only assume that as a servicer there is a financial gain for them keeping the mortgage in a riskier position. A mortgage company that acts so aggressively against the best interest of the overall economy should be thoroughly investigated. Beware of IBM Lender Services / Severus, document all interaction no matter if you are customer in good standing or not. They are not partners they are predators. My only saving grace is that I am in a position to make additional investment in my home and refinance with a more reputable institution.
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