Just found this website with the following post I can relate to quite a bit:"I am in the same boat. I bought a house that was in forclosure and got a sweet deal deal. I paid 60k for a house that appraised for 78k. I got a letter that said my escrow was going up so I did some investigating. The escrow was increasing due to a hike in my insurance, so while investigating I noticed I was wasting money on PMI. I called and sough how to eliminate PMI. I was told that I had to pay for an apprasal and the value of my home had to be 74k. I told the person on the phone that when I bought the home it already appraised for more that the 74k required. That didnt matter, I had to pay their approved vendor for an apprasial. I played the game and paid for an apprasial and it came back that my house was valued at $90k. Today I got a letter in the mail telling me that eventhough my loan to value was at 62%, they could not remove PMI unless I could show receipts that showed what structural improvements were made that totalled $14K. In shock, I called. They were pointing the finger at Fanny Mae. I too did not get my loan from Wells Fargo, they bought it. In shock and very upset that a hard working American can be subject to this treatment. I to will join any class action law suit against this injustice!!"http://www.ripoffreport.com/r/Wells-Fargo-Home-Mortgage/Des-Moines-Iowa-50328/Wells-Fargo-Home-Mortgage-Wont-Cancel-PMI-Des-Moines-Iowa-909445Like this person, we didn't initially go through Wells Fargo. It's looking more and more like this bank, who I've banked with since age 16, is playing quite dirty, unless I'm mistaken on some facts here?
Thanks all for your replies. I'll go ahead and type out the requirements for Wells Fargo here since that image is too small to read."Requirement 1* You have no 30-day late payments in the last 12 months, no 60-day late payments in the past 24 months and your loan is paid current with no past due payments owed.Requirement 2* Your loan has aged less than two years.Your loan must meet the required LTV ratio based on one of the following options: HPA Requirements Make principal curtailment to 78% in the amount of $xxxInvestor requirementsA. Order an appraisal to verify the current value of your property. The appraisal must show the value of the structural improvements made to the property. If the improvements are the sole reason for the increased value of $xxx, your LTV will be 75% and the appraisal can be used to delete PMI. The value of the improvements must equal $xxx Please be aware that proof of the cost of any structural improvements may be required via receipts/work orders in adition to the completed appraisal order."Also, I'm not sure if a refinance makes sense considering we locked in at 3.5%/30year. I feel like I've received the run around from Wells Fargo because some agents have told me market value (up 25% conservatively since we purchased) can go towards the LTV of 75%, while this letter says otherwise. I get the impression there is grey area.
My wife and I purchased a home last August using a conventional loan. We live here and this is not as an investment. We're currently at 88% LTV. The loan is with Fannie Mae and is serviced by Wells Fargo. I've contacted Wells Fargo a few times this year regarding the requirements for removal of the PMI. I've received different answers at different times when posing the same two questions to different customer service representatives. The problem is, I've had contradictory information regarding:1) Whether or not we must wait 24 months before requesting removal of PMI2) If the appraised value must consist of exclusively being home improvements and how market value appreciation factors into thisOne agent told me home improvement and market value appreciation could be combined (which the appraisal of course would factor in). Another told me it has to be from home improvements exclusively. While we've done some improvements to the home over the last year, it wouldn't be enough to reach 75% LTV (we'd have enough with market value). Once again, I had one representative tell me I must wait two years, while others (I've made a total of three calls, all different information) told me there is no 24 month waiting period. I received the PMI removal requirements in a letter from Wells Fargo and I took a picture of the front page with the requirements:I don't want to pay for an appraisal and learn later on that we possibly didn't meet requirements because of a lack of 24 months of payment history and/or the appraisal value and how much of it is because of home improvements. Any advice here is greatly appreciated.