Pentagon FCU Mortgage Complaint

Pentagon FCU Mortgage department,

Conventional fixed mortgage Settlement process and costs Texas

My chief complaint is Pentagon Federal Credit Union is in breach of contract for changing their policy on the criteria for removing Private Mortgage Insurance ( PMI ) that was explicitly agreed to at the time of closing on the loan. The Credit Union is changing the terms of the agreement for removing PMI in its favor now that I am finally eligible to remove PMI. At closing Pentagon Federal Credit Union provided a document titled ( enclosed ) : " WHAT YOU NEED TO KNOW ABOUT OUR SERVICING OF YOUR MORTGAGE '' In this document, the following policy was stipulated for removing PMI : " PRIVATE MORTGAGE INSURANCE Private Mortgage Insurance ( PMI ) protects PenFed against the risk of loss should a mortgage loan default. PMI is required when the outstanding principal balance of the loan is greater than 80 % of the value of the property securing the loan. The homeowners Protection Act - requires PenFed to provide certain disclosures and notices. The


80 % provided you have a good payment history and the property value has not declined. PMI can also be cancelled after - month if the loan to value reaches 80 % of the " current value. '' In order to cancel PMI based on " current value '' a new appraisal is required. The expense of the appraisal is the borrower 's responsibility. '' ADDITIONAL FACTS : On - -, -, I purchased my primary residence with PenFed as the lender ( enclosed ). On - -, -, I sent an email to Pentagon Federal Credit Union to request an appraisal on my primary residence for the purposes of removing PMI from my exiting mortgage ( enclosed ). On - -, -, the Pen Fed representative sent a reply email, indicating a 75 % loan to value was required to remove PMI instead of the 80 % agreed to at the time of closing ( enclosed ). My Primary Residence : Original Value = $270000.00 ( enclosed ) Appraised Value on -/-/- = $330000.00 ( enclosed ) PenFed was the original lender. No refinances were done. A conventional loan was used. This was not a higher risk of default loan. I never received a new Policy from PendFed regarding changes to removing PMI.