How Do I Complain About Freddie Mac

Question

Freddie Mac created a new (I believe) rule around PMI. I refinanced in November 2021 and now I have ~25% equity in the house. I reached out to discuss removing PMI and they said that they DO NOT LOOK at the current value. The only way to remove the PMI in the first 2 years is direct payments to the principal, or capital expenditures that would increase the value of my house, based on the price at the TIME OF MY REFINANCE. This is ridiculous and I asked around and no one has ever heard about this.

I tried complaining to the CFPB, but they do not regulate Fannie or Freddie. I also attempted to file a FOIA, but found that Freddie and Fannie are not bound by FOIA requests. Any suggestions on what to do, or who to complain to? I spoke to Freddie multiple times, but they are not at all helpful.

I tried complaining to the CFPB, but they do not regulate Fannie or Freddie. I also attempted to file a FOIA, but found that Freddie and Fannie are not bound by FOIA requests. Any suggestions on what to do, or who to complain to? I spoke to Freddie multiple times, but they are not at all helpful.

Sergey A. Petrov · Answer

This is correct. Either paydown or increased value by capital improvements followed by an appraisal. The “V” in the LTV without improvements is the original value at purchase vs market impacts that may change that V to something different today.

Russell Brazil · Answer

It is LTV of the loan, not the LTV of the property.  For instance when you purchase a property, the underwriting guidelines on the loan are to use the lower of the appraised value of the home or the purchase price....the lower of the two is what the LTV is based on.

Russell Brazil · Answer

LTV of the loan needs to hit 80% to request it, or hit 78% to drop off automatically. This isnt anything new.

Andy Vasquez · Answer

Thanks all. I thought it was based on the market value of my house, not the static value at the time of the refinance.

Andy Vasquez · Answer

Hey Russell, what I am saying is the LTV is 25% and it is not dropping off, nor will it. In the first 2-5 years Freddie Mac no longer use LTV.

Sergey A. Petrov · Answer

What is in your financing docs? Nothing to file complaints over if the response you are getting adheres to the the terms. What you described sounds like common practice aside from the actual terms which are likely a part of your individual financing arrangement

Chris Seveney · Answer

@Anosh Vatcha

That’s what is on their website effective since June. Which I believe may be an improvement because previously I do not believe they even allowed it unless it was a refinance.

What’s your contract state? Does your pmi agreement state something different?

https://guide.freddiemac.com/app/guide/section/8203.2

How Do I Complain About Freddie Mac

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