CitiMortgage Fraud - LPMI

amalfi122

LoanSafe Member
Nov 23, 2010
5
0
0
Michigan
CitiMortgage are frauds!! I have been fighting with them for over a year and have talked with managers, supervisors, agents (and have all their names too!) and I am still being put through an insurmountable amount of stress!! My original refinanced 20 year loan was with ABN AMRO and sold to CitiMortgage in 2007. At that time, it seems CitiMortgage, without our knowledge or disclosure to us, bought and paid for Lender Paid PMI coverage through Republic Mortgage Insurance. Now, CitiMortgage will continue to tell me it was on the loan from origination, but I have documents to prove that it was not! I had a 78% LTV when we refinanced and therefore,there should NOT have been any need for PMI, lender paid or otherwise!!! I have been sent to the research dept of CitiMortgage now 4 times and still nobody can produce said documentation to prove LPMI. We have never been late, refinanced into a 20 year to payoff early but since the rates have come down we just wanted to refinance to enjoy the lower rates and found out at that time that there was LPMI on the loan. This is total fraud!! In no way should a homeowner have to go through this type of scenario but today, we are STILL dealing with this. NOBODY at CitiMortgage wants to help us!! Where is this so called "GREAT customer service" of CitiMortgage?? Who, in the President's office of CitiMortgage is willing to admit the mistake made when the loan was bought from ABN AMRO and miscoded??? Who is willing to help out this responsible homeowner just lower the interest rate without harming our 760 and 790 credit scores?!?!?? We don't want to "not make payments for 4 months" and then get help!! We want help now with our original "NO PMI/LPMI loan"!! Please help!! Any and all advice will be read and taken into consideration!!! Thank you!<!-- google_ad_section_end -->
<SCRIPT src="http://pagead2.googlesyndication.com/pagead/js/r20101117/r20101122/show_ads_impl.js"></SCRIPT><SCRIPT src="http://googleads.g.doubleclick.net/pagead/test_domain.js"></SCRIPT><SCRIPT src="http://pagead2.googlesyndication.com/pagead/render_ads.js"></SCRIPT><SCRIPT src="http://pagead2.googlesyndication.com/pagead/render_ads.js"></SCRIPT><SCRIPT>google_protectAndRun("render_ads.js::google_render_ad", google_handleError, google_render_ad);</SCRIPT><IFRAME id=google_ads_frame1 height=undefined marginHeight=0 src="http://googleads.g.doubleclick.net/pagead/ads?format=nanxnan&output=html&ea=0&flash=10.0.32.18&dt=1290543349148&shv=r20101117&jsv=r20101122&saldr=1&correlator=1290543349132&frm=1&adk=3258867418&ga_vid=1865538705.1290534636&ga_sid=1290542246&ga_hid=34552590&ga_fc=1&u_tz=-300&u_his=68&u_java=1&u_h=768&u_w=1024&u_ah=738&u_aw=1024&u_cd=32&u_nplug=0&u_nmime=0&biw=966&bih=355&ifk=1382751802&fu=4&ifi=1&dtd=141" frameBorder=0 width=undefined allowTransparency name=google_ads_frame1 marginWidth=0 scrolling=no></IFRAME><SCRIPT>google_protectAndRun("render_ads.js::google_render_ad", google_handleError, google_render_ad);</SCRIPT>
 

jakelabry

LoanSafe Member
Jun 4, 2009
1,236
5
38
I'm not sure I understand why it is any issue to you that a lender chooses to purchase and pay for insurance on your mortgage? They didn't ask you to pay for it right? How is it fraud that they obtained AND paid for an insurance policy? How does that prevent you from refinancing? I don't understand the source of your outrage.

Found this:

"In the case of lender-paid MI, the term of the policy can vary based upon the type of coverage provide (either primary insurance, or some sort of pool insurance policy). Borrowers typically have no knowledge of any lender-paid MI, in fact most "No MI Required" loans actually have lender-paid MI, which is funded through a higher interest rate that the borrower pays."
 

amalfi122

LoanSafe Member
Nov 23, 2010
5
0
0
Michigan
First, thank you for your comments. It is an issue because no lenders will refinance mortgages (underwater-current on payments-mortgages) with LPMI, only current serviceer. CitiMortgage will not refinance because of LTV now due to depressed housing markets. My house went from $180,000 appraisal to $106,000 appraisal and therefore because we are not behind on payments and because of the LPMI we are not able to refinance. The outrage comes from the fact that there was no LPMI on this loan when we closed in 2003 and now there is. It is FRAUD when the LPMI is purchased after the fact and placed on a loan without disclosure to that effect and it causes hardship to the consumer. Thank you.
 

xelarows

LoanSafe Member
Feb 1, 2011
3
0
0
LPMI Added to Mortgage Loans after closing is FRAUD!

Lenders CANNOT add mortgage insurance to mortgage loans after closing. IT HAS TO BE DISCLOSED SOMEWHERE IN THE ORIGINAL LOAN DOCS. Read the 1998 Homeowners Protection Act. Unless there is a big loophole somewhere in that law that allows banks to pull off this scam and get away from it, IT IS ILLEGAL. I am in the process of finding an attorney to help us. This needs to be a class action lawsuit against the banks. We also can't do an FHA Short Refinance loan because of LPMI added 6 months after our closing date. No disclosure at closing, anywhere. It's not just the HARP! I am furious and I will keep everyone posted.
 

xelarows

LoanSafe Member
Feb 1, 2011
3
0
0
Lenders CANNOT add mortgage insurance to mortgage loans after closing. IT HAS TO BE DISCLOSED SOMEWHERE IN THE ORIGINAL LOAN DOCS. Read the 1998 Homeowners Protection Act. Unless there is a big loophole somewhere in that law that allows banks to pull off this scam and get away from it, IT IS ILLEGAL. I am in the process of finding an attorney to help us. This needs to be a class action lawsuit against the banks. We also can't do an FHA Short Refinance loan because of LPMI added 6 months after our closing date. No disclosure at closing, anywhere. It's not just the HARP! I am furious and I will keep everyone posted.
I FOUND A LAWYER. Placing PMI or LPMI on your mortgage without disclosure is ILLEGAL and breaches the original mortgage agreement that one has with their lender. Now I have to find out if this reason that I have been given by my mortgage servicer is real...i.e. that they won't allow my FHA short refinance to go through because I have LPMI. They could just be reading from a laundry list of reasons to keep me paying. The question now is does the lender want a big fat lawsuit against them for this or will they agree to a principal reduction so I can GET OUT of this predatory mortgage loan. Apparently, anyone who did not sign a piece of paper at closing acknowledging that there would be PMI or LPMI is entitled to monetary damages and there is no LPMI or PMI acknowledged on your closing costs (H.U.D. sheet).......the contract could be null and void due to the lender's non disclosure.......will keep you posted.
 

xelarows

LoanSafe Member
Feb 1, 2011
3
0
0
BAD NEWS! Anytime a mortgage is sold to another lender, the 1998 HPA does not apply and the new owner of your note can purchase LMPI. It is a huge loophole in the 1998 Homeowners Protection Act. We are all screwed since just about every mortgage is sold. Sorry for the bad news. This was from the mouth of an expert on the 1998 Homeowners Protection Act. I am in shock