CitiMortgage not removing PMI even after LTV is 54%.

[llpete]

We have a Singe Family home investment property and the mortgage for it is serviced by CitiMortgage. Two years back we purchased this brand new house for $200K and we had taken a loan of $180K from Citi. We were paying PMI on this loan. On July 7th, we sent Citi a check for $70K. In addition to this, we had to pay $500 for Citi to update the account status and retain the 30 year loan period. When we asked the PMI to be removed, we were informed that we have to get the house appraised by a appraiser selected by CitiMortgage. Although the cost of this appraisal service was more than what we got from local appraisal companies, we went with the company Citi forced us to go with and paid $385.
After couple of weeks Citi sent us a letter saying that the property value has been depreciated to $185K. So they cannot remove the PMI. We are extremely agitated and furious as we cannot understand the justification behind this. The Loan-toValue is still below 55%. So why are we penalized for being good customers?
We tried to call Citi several of times and each time were put on hold and made to wait for 15-20 minutes, then transferred from one department to another, with no one having any clue about our mortgage account. Each time the supervisor informed us that it was their investor's policy and they could not do anything. The PMI that we are paying is $135.

p.s. our credit score is above 800 and we have not defaulted on our payment.

This load was originally with ABN-AMRO and sold to CitiMortgage in couple of months.

What should do? CitiMortgage employees are acting ignorant and keep transferring the call.

[snapple candy]

If that is a requirement of the investor, ask them to provide you that in writing. Then......
I suggest hiring an attorney to write them a nasty letter...one of those if you dont remove the requirement, we'll sue you kind.