In 7/06 I originated a course of construction loan through a local bank. During the closing of the coc loan we had to determine an amount of the loan based on costs. We did the loan for the full amount which was not quite the 80% LTV that we needed. Our originator said we could stop the draws once we reached the 80% LTV... which we did. We closed the loan with no PMI insurance. The loan was then sold to Citimortgage and our first payment was 10/1/07. We received a letter stating they were affiliated with their mortgage insurance company and if we had a problem to write them a letter. I immediately wrote them a letter and they sent me a letter stating I was at 79.5% ltv and needed to be at 80% or less (which 79.5% is less) and that if we wanted to remove it we would have to pay for another appraisal. I called, talking to several Customer service people who did not know what PMI was and finally talked to a manager who said that she was sorry, since our LTV was 79.5% we had to pay mortgage insurance as it needed to be at 80%... (which made no sense at all and she didn't get it after I explained).

I did not respond to their letter okaying them to get an appraisal so they sent me another letter in December stating I now needed to have an LTV of 65% or less and that my current LTV is 79.6%... so in order to drop PMI I must pay for an appraisal. This is both illegal and a customer nightmare. Not sure what do at this point except to talk to my originator.

This is my complaint and I have all the documentation to provide if needed.