Complaint Review: US Bank Home Mortgage - Internet Internet

They can't cancel your MI because they don't hold you MI. One of the few MI companies (MGIC, Radian, etc.) hold it. Or if you did FHA it is held by HUD. Only the insurer can cancel it.


With that being said - There is a federal law called the Homeowner's Protection Act that specifically lays out the rules of MI cancellation - the banks do not have control over this. To cancel MI one of two things has to have happened:

• If paid down to 80% you request cancellation yourself - BUT there are restrictions (below)
  
  
• At 78% it is automatically canceled IF it was paid down per the amortization schedule

So automatic does not apply to you because you would be making accelerated payment. The restriction on requesting it are quite interesting though. By law, to cancel it yourself, you cannot have not been 30 days late with your mortgage payment within one year of your request, or 60 days late within two years. Since you say they are telling you 2 years since your lates, I am doubting just how timely you took care of it. On the 31st day? Try the 61st day.

Could their system have got screwed up? Sure, although I am more inclined to think it was an input error. Either way, YOU are the ONLY one who has the ultimate responsibilty to make sure your payment has cleared your account. It is not their fault you were out of the country. Or that you either made the payment SO last minute that you did not have time to check status before leaving on a trip where you knew you would have no access - OR - don't keep track of your checking account balance enough to notice that an entire house payment has not been deducted. People go on trips all the time and still make arrangements to make sure their finances are in order.  They were supposed to just let a 60 DAY late slide by because you took that long to resolve an issues that you are personally responsible for?

They cannot cancel your MI because they aren't the people holding the MI. Banks are not ever the holder of MI. It would be one of the few private mortgage insurance comepanies (MGIC, Radian, etc.) or HUD if you had done FHA (who requires 5 years of MI no matter what). Only the insurance holder can cancel it, although the servicing bank can assist with it.

Here is the thing though - Under the Homeowner's Protection Act, a fed law that is all about MI requirements, to cancel MI one of two things has to happen:

a) request it yourself when you get it paid down to 80%, see the restriction below 

b) It is automatically cancelled  when it reaches 78% as a result of the initial amortization schedule

Since you would be making accelratated payments, the 78% automatic does not apply.

As for the 80% - This law also states that you cannot have been 30 days late with your mortgage payment within one year of your request, or 60 days late within two years. I am not buying that you were only 31 days late if they are saying the cannot discuss it until 2 years have passed since your lates. Not to mention a 30 day late in 2009 would NOT be keeping you from refinancing - but a 60 day would. 

You say yourself YOU don't know what happened. Is it possible something happened with their system? Yes. But ultimately it is you who is responsible to make sure it has cleared your account and to correct any issues in a timely matter. I bet they sent notices, etc. The fact you were out of the county is not their fault. They are supposed to just ignore a mortgage that was obviously 60 days late? People travel all the time and have some type of system in place to make sure their finances, etc. are being taken care of. I am in this industry. Everyone has some story on how lates on their credit are everyone's fault except their own.

Mr. Rik,

What does your driving record have to do with this conversation?

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I've drove hundreds (of thousands) of miles and no accident. These guys are still scumbags!

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Funny how I've made hundreds of payments like this over the years and I've never had this type of experience.

Hmm....

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ALWAYS seem to work out in the BANK'S favor??? And cause you LOTS OF HEARTACHE waaay down the road. Again to "OTHERS" favor????

SCUMBAGS.

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" A big bank ought to be able to verify your routing and account numbers before sending you to the logout window, and bounce you back to re-enter them."

  This is basically an electronic check.  The bank cannot verify an account number until it is presented to the customer's bank (and accepted or rejected). 

"Any online store can do that by verifying credit cards."

  That's because a credit card transaction is instantly sent to the credit card system for authentication.   Electronic checks are processed overnight in a batch. 

I think you have a valid point, even if you did enter a wrong digit or something, which is likely. A big bank ought to be able to verify your routing and account numbers before sending you to the logout window, and bounce you back to re-enter them.

Any online store can do that by verifying credit cards.

Maybe you should go on an automatic payment plan where they take the payment out of your account each month, assuring its on time.

I did not say I made a mistake.  I don't know what happened and neither does US BANK -- the usbankhome mortgage on line support could not figure it out.  I did notice they changed their system a year later and I was told there were a number of problems with the system.

Well, believe it or not, not everyone has constant access to their phone or computer.  I was traveling in UGANDA in a rural area with no access to either.

I did spend many hours trying to find out what happened -- just trying to find the right person to speak to was hours of time.

I think we need to expect some reasonable efforts for banks or companies using computerized systems to make an effort to solve problems and not go directly into their "it's your problem not mine."

Come on....we all know that the banks are making lots of mistakes.  Why should the customer take all the blame?

but your payment was late.

You entered in incorrect check information on (I'm assuming) their website. How is that the bank's fault? You should've been responsible enough to make sure that the payment actually went through before you went on your trip. You have no one to blame but yourself.