Bank of america placed the PMI insurance back on my aunts loan after 12 years of not having it. She originally had PMI when she bought her house in 1992 for five years, but they removed it in 1997. All of a sudden they placed it back this April 2010 and are giving her the excuse that they were never suppose to remove it because FHA loans that originated prior to 2001 had to keep the PMI for the entire 30 years of the loan. Also now her escrow account is negative 3500 because they say they have to pay the past 94 months to the PMI insurance company.
Is this true has anyone experienced this, this even surprises the customer services reps that we are talking too at bank of america