JPMorgan Chase & Co. Mortgage Complaint

JPMorgan Chase & Co. Mortgage department,

FHA mortgage Settlement process and costs Pennsylvania

My wife and I purchased our home -/-/- under an FHA mortgage from Chase. In - -, we refinanced with Chase to lower our interest rate a little. The refinance was also an FHA loan, so it included monthly PMI payments. As it 's been explained to me, PMI payments MUST continue to be made monthly for at least 5 years and the loan balance must be less than 80 % of the original assessed value in order to stop making PMI payments. When we refinanced, Chase 's representatives assured my wife and I that this 5-year mandatory PMI payment was based on the original date of purchase of our home in -/-/-, not on the refinance date of - -, so we accepted the refinance offer even though the interest rate was less than half a percent less than our original -. We were assured by Chase that this was the right thing to do, financially. In -/-/-, I called Chase to ask what balance I needed to be at in order to stop paying PMI, and was told that I could n't drop PMI until - - at the earliest because the 5-year mandatory PMI payment resets from


the law. I told them I wanted them to pay the PMI out of their own ledgers since it was their deceptive practices that put me in this position, and they responded by parroting the terms of the refinance back to me and sending me a photocopy of a page from the mortgage documents that does n't address my fundamental problem. I understood the required 5-years of PMI when I got my original loan in -/-/-, but nobody explained to me that the clock would reset when I refinanced! In fact, they told me the opposite. Chase argues that they disclosed fully, the nature of the loan, but they KNEW the terms of my original loan because they serviced it at the time of the refinance, and they ALSO KNEW the terms of my refinance because they wrote it?! Did n't it occur to anyone in their sales department to ask why a client would knowingly set himself up for another 3 years of PMI? As it turns out, my wife and I will probably stay in our home long enough that the refinance will end up making sense based on the interest rate being lower, but I should have started realizing those savings sooner if not for having been misled by Chase 's sales people.