Attempting to Remove PMI & Bank Refusing

[George Voutsinos]

My current mortgage is 70% LTV, so I have called my bank asking for the removal of the PMI. I'm current on my loan and have never been late or missed a payment. I told them per the Homeowners Protection Act of 1998 they are obligated to automatically drop the PMI when my loan reached 78% LTV and I wanted to be reimbursed for the (26) PMI payments I made past that point. Their response was that they'll review my request and send me a letter in 10-business days of their findings. I got the letter today and they're stating that my PMI won't be removed until the maturity date October 1, 2038. If I wanted to get it terminated earlier I'll need to get an appraisal (paid out of pocket) and have it sent in for their review upon which they still could reject the removal. I've already been through this ordeal however at that point my loan was above 80% LTV. The property is in great condition, it will definitely appraise for market value along with current comps. I'm seriously considering taking this to the next level. Wondering what everyone's thoughts are and if they had similar experiences?

According to the Consumer Finance Protection Bureau...

Is my PMI automatically canceled once my principal balance is 78 percent of the home’s original value?

Yes. Even if you don’t ask your servicer to cancel PMI, in general, your servicer must automatically terminate PMI on the date when your principal balance is scheduled to reach 78 percent of the original value of your home. For your PMI to be cancelled on that date, you need to be current on your payments. Otherwise, PMI will not be terminated until shortly after your payments are brought up to date.