We had our mortgage with Central Mortgage for sometime and they sold it to EverHome mortgage. After 6 months being with them, I got a call from them offering me refinancing that would reduce my interest rate by 0.675 and save me 150 dollars every month.

My PMI is a lender paid PMI and I told the loan officer "Todd Miller" several times (literally more than 10 times) that if I have to refinance, I may have to start paying the PMI so I do not want to refinance. I knew this because I have gone through refinancing through other companies and they always tell me that my lender paid PMI will not be recognized by Fannie Mae and I would have to start pay PMI after refinancing. So I never bothered to do refinancing at all. But this time, Todd Miller called me several times trying to convince me that he has worked on similar cases and the applicant has never had to pay PMI in this case. He also said if the home appraisal comes to 100% or less of the loan amount, I can get refinanced with no PMI (as per new Obama's plan, I do not have to pay PMI if I am not paying PMI now). But I was skeptical as my PMI is a lender paid PMI. After multiple assurance he gave, I moved forward.

Then I paid application fee and appraisal fee (more than 400 dollars). The appraisal came to a decent price that the loan amount would be around 90% of the home value. As he promised the terms, I sent all my signed documents. He just waited until he receives all of documents and then just sent an email saying the underwriter is telling that the lender paid PMI is not being recognized by Fannie Mae and I would have to pay PMI or bring down 37000 dollars as closing cost as the refinancing can only offer me 80% of home value. Isn't it ridiculous for someone to pay 37000 just to reduce the interest rate by 0.675%? Didn't I tell him all this before?

I tried to contact him several times and sent him emails several times asking him what about the assurance he gave me before. Now he is not denying or accepting the fact that he misguided me.

He is either a cheater or an incompetent loan officer who doesn't understand lender paid PMI. I am going to talk with this manager but doubt that Everhome mortgage by itself is doing this scam. The appraisal company was set by them so I believe it could be their sister company. So they stole my 400 dollars, wasted my time and engery, and also did a hard inquiry in my credit history which is going to affect me.

I strongly recommend not to go with this company for refinancing or any other reason.