Folks don't like PMI, but it's there because historically, if a borrower has less than 20% down, it's easier to walk away from a house, leaving the mortgage company in the lurch. At the Credit Union at which I work, it's dropped after the LTV based on the original value goes below 78%. However, if a borrower believes the home value has risen sufficiently to make the LTV below 80%, he or she can request an appraisal, at his or own expense, and if in fact the value supports it, the PMI can be dropped.
I have also been looking to move my loan away from a megabank, and prefer a local CU. I thought that all of the CU bundled their home loans together and resold them, just like any other lender.