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PMI removal via appraisal with Penny Mac

tdm2580
New Member

PMI removal via appraisal with Penny Mac

Does anyone have any advice or experience working with Penny Mac to get PMI removed via appraisal?  Our homes value has increased significantly since we purchased it in July of 2018.  I requested PMI removal to start the process with Penny Mac, and it was declined becuase our LTV for original appraisal did not fall under 80%.  I undersatnd that for this new appraisal, it will need to be paid by me and order by Penny Mac through their approved firm.  That's where I am stalled.  Penny Mac is giving me the run around on ordering this appraisal.  Any advice is appreciated.  

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3 REPLIES 3
JVille
Valued Contributor

Re: PMI removal via appraisal with Penny Mac

Who services your loan? And this was originally just a plain normal conventional loan originally? 

Message 2 of 4
JFox418
New Contributor

Re: PMI removal via appraisal with Penny Mac

I don't have experience with Penny Mac but I just went through this exact process about a month ago with Third Federal.

 

We bought the house in 2019 and had to wait 2 years before requesting the PMI to be removed. I requested it in August this year and we received a letter that it was denied because our loan hasn't been paid down to the %80 of purchase price and if we wanted to have an appriasal done that shows the value is %20 over what we owe then that would be permitted. We paid $500 for an appraisal through Third Federal since we felt it should appraise for enough. The request was pretty easy, in our denial letter there was a form to fill out requesting an appraisal and to enclose the money and return it. I was certainly worried the appraisal would come back low since it was being done through the bank though. 

 

We needed our house to appraise for $198k or more and it came back at $205k so they dropped the PMI. Zillow has our home at around $230k. I'm sure zillow isn't the best way to compare but for comparison sake? 

11.05.21 - EX 767 / EQ 774 / TU 762 %56 UTIL $43.1K CL (WIP)                                                                                  Gardening since 8/19

11.18.21 - EX 780 %43 UTIL

Message 3 of 4
VALoanMaster
Valued Contributor

Re: PMI removal via appraisal with Penny Mac


@tdm2580 wrote:

Does anyone have any advice or experience working with Penny Mac to get PMI removed via appraisal?  Our homes value has increased significantly since we purchased it in July of 2018.  I requested PMI removal to start the process with Penny Mac, and it was declined becuase our LTV for original appraisal did not fall under 80%.  I undersatnd that for this new appraisal, it will need to be paid by me and order by Penny Mac through their approved firm.  That's where I am stalled.  Penny Mac is giving me the run around on ordering this appraisal.  Any advice is appreciated.  


According to the Homeowners Protection Act, it does not look like Penny Mac is actually required to do anything. You may need to refinance your loan with another lender.

Here is the HPA:

https://www.federalreserve.gov/boarddocs/supmanual/cch/hpa.pdf

 

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