Complaint Review: PHH Mortgage

On September 5, 2003, I secured residential mortgage with PHH Mortgage Company in New Jersey. At closing I learned I would be charged $160.00/mo PMI on a $46,000.00 30 year conventional mortgage with a 7.375% interest rate. My good faith estimate had a PMI of $42.46 and an interest rate of 6.50%.

Company stated I was charged such a high PMI rate because of my credit rating. Joanne Smith was in charge of my mortgage servicing. When I asked Joanne to define PMI for me, she said, "I don't know anything about PMI. It's not my field of education. All I know is that you're stuck with it."

I informed Joanne that I had been a mortgage processor for 5 years and PMI is NOT based on a person's credit rating. She said, "in your case, we made the exception." A week later I had a male relative contact Joanne about how the company figured out PMI was calculated & if a person's credit rating was used, she said, "No, we do not use a person's credit rating in calculating PMI."

People in the mortgage services department of PHH refuse to take my calls. When I call, I'm either hung up on or put on hold for an excessively long time. Correspondence is not answered. The company also refuses to let me talk to the Underwriting Department nor give me the company president's name & contact info.

In addition, the company also refuses to send me monthly statements showing me my balance, payment distribution, and other financial information. Joanne stated that I can always call to get the information.

Allison
FORT FAIRFIELD, Maine
U.S.A.