Bank of America Complaint - No Refinance No PMI Cancellation
I purchased my home in April 08 with Countrywide conventional financing with PMI, which they assured me could be cancelled after 2 years of on-time payments. One year later, after BOA bought out Countrywide, the 30-year fixed interest rate had dropped a full point, so I applied for refinancing with BOA. In spite of the National program then in place to encourage banks to refinance, they refused because of insufficient income and inadequate home value. Upsetting since my documented income had increased by 30K since my initial loan, and their approved appraiser low-balled the home at 215K. I believe they simply had no interest in refinancing at a lower interest rate for someone having no difficulty making their payments. I decided I would just forget about refinancing and cancel the PMI at the 2 year point. So in April 10, I made that request. In order to do so, they insisted on a new appraisal (I'd already seen how they choose a low-ball appraiser) and at least 25% equity (contrary to federal law, as I understand it, that mandates cancellation at 20% equity). I resolved this by refinancing with another bank. Had no problems with qualifying income and they appraised the home at 245K (in a still declining market). What I find most upsetting is I took out the conventional loan in the first place instead of using my VA government backed loan from the beginning (no PMI). The reason I did so was Countrywide's assurance that they could cancel PMI after 2 years, which would have been less expensive than paying the VA funding fee. So now I've paid the PMI for 2 years and still end up paying the VA funding fee just to get away from Bank of America. Be very cautious with this bank. They seem to operate solely for the bottom line with only lip service and a good PR line aimed at customer needs and service.
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