PENNYMAC LOAN SERVICES, LLC

2018-12-28

IN

Struggling to pay mortgage

Mortgage: FHA mortgage

Complaint: Does anyone else see a problem here? If so, can someone please help me get justice? My goal was to prevent my home loan from Foreclosure litigation, yet I found myself in this exact situation after being bamboozled by PennyMac Loan Services! Heres the long and the short of what happened to me. I was a former participant in the Get Hope Hardest Hit Foreclosure Prevention Program due to prolonged unemployment. PennyMac Loan Services purchased my loan from XXXX XXXX XXXX in XX/XX/XXXX while I was still receiving HHF assistance from the Indiana Housing and Community Development Authority. After the Hardest Hit Fund Program expired in XX/XX/XXXX, I was approved for, and participated in, PennyMacs Special Forbearance Program. As a participant in the Special Forbearance program, I was asked several times by PennyMac representatives if I wanted to be considered for a loan modification. I was denied the loan modification because of my XXXX status. I accepted PennyMacs offers to review my file for a loan modification. Therefore, I delayed listing my home before and after the Special Forbearance program. The Special Forbearance with PennyMac was valid through XX/XX/XXXX, but by that afternoon I received PennyMacs file stamped foreclosure documentation submitted by their attorneys, XXXX and XXXX! After I was denied a loan modification for the final time, I reached out to my realtor ; however, PennyMac refused to provide guidance for setting the sale price and only did so after declining three of the five offers for Short Sale I provided, stating on one hand that I was not eligible for a Short Sale, then on the other stating that each offer was not priced at a fair market value. After many requests, I finally received PennyMacs suggested sale price range of $ XXXX- {$170000.00}, based on the area where my former home is located ; however, the lender set this range but had not inspected for depreciation from age, as well as, normal wear and tear, or appraised the property to determine its actual worth. Furthermore, one of the five offers I received and forwarded to PennyMac for Short Sale approval was a cash offer of {$110000.00}, one was for {$120000.00}, and another was above {$120000.00}. It is also important to note that each time I requested my Loan Payoff, PennyMacs 7-10 day waiting period for providing payoff information caused perspective buyers to grow anxious or lose interest. Whats more, my realtor and interested parties complained this time loss was counter-productive to the sales process. By the time PennyMac declined the fifth offer, which was above the bottom of the range they provided and was for the stated reason that their people did not have time to review the documentation because the sale date was within 37 days, I was at my wits end. This final straw prompted me do a little research on PennyMac Loan Services because of the apparent evasiveness I experienced while trying to sale my home. What I learned was astonishing. The restructured PennyMac was formerly XXXX, a mortgage company at the center of the XX/XX/XXXX subprime mortgage fiasco. PennyMacs CEO and senior executives were at XXXX when the housing market tanked, and their apparent business model at this company is comparable, purchasing distressed mortgages at rock-bottom prices and reselling them for a substantial profit. In closing, I have always thought it was curious and questioned whether I had been preyed upon when PennyMac acquired my loan while I was an active participant in the Hardest Hit Foreclosure Prevention Program. I could hardly fathom that PennyMac knowingly purchased a distressed mortgage, and I believe based on their track record, this acquisition was with the intention of reselling my home for the benefit of the company. The Sheriffs Sale is occurred on XX/XX/XXXX at which time the property was scheduled to be auctioned. I believe PennyMacs intentions all along was to allow my property to be sold in the Sheriffs Sale so that the company can gain from the sale. It is my believe that PennyMac calculatedly let the clock run out only having the property appraised when the Sheriffs Sale was scheduled to take place within 30-40 days. PennyMacs declinations and delays needlessly cost me my home when I had perspective buyers who were interested in purchasing the property ; resulted in expensive court costs and attorneys fees ; and a Sheriffs sale! I do not feel PennyMacs actions were fair or just because I participated in foreclosure prevention programs, and I tried to sell my home to no avail. Therefore, it is for these reasons, I am writing to ask if you are aware of other HHF participants, or consumers with distressed mortgages who have had similar concerns with PennyMac. If there are others, based on this companys history of deceptive practices and their handling of my account, I would ask that you examine PennyMacs practices for ethics violations, and require that PennyMac remove the foreclosure from my credit report. Please feel free to contact me should you have questions or need additional information. Sincerely, XXXX XXXX XXXX XXXX ( XXXX ) XXXX
Company Response: Closed with explanation

Timely Response

2018-12-27

Great Falls, MT

Trouble during payment process

Mortgage: VA mortgage

Company Response: Closed with explanation

Timely Response

2018-12-27

Houston, TX

Struggling to pay mortgage

Mortgage: VA mortgage

Complaint: We were affected by XXXX XXXX and our mortgage company Penny Mac put us on forbearance. We were told that since we have never defaulted on our payments after the disaster forbearance was over we would be able to apply those payments to the rear and continue making the same payment amount once we were removed from forbearance. My XXXX was XXXX for almost a year and throughout that year I had to call everyday to Penny Macs loss draft department. Since, they wouldn't release any of the funds our insurance gave us to fix the home. No matter what information I sent in they always found a reason not to release funds. It wasn't until we had XXXX XXXX get involved and they immediately responded and released the funds to pay our contractor. During this time we spent our own money along with personal loans we had to take out to pay the different contractors. At the same time we are still on forbearance and falling behind on our mortgage because we can't afford to make payments since we are paying to get our home fixed out of pocket. The only way they release funds is after the inspections are done. We were told the final inspection needed to be 90 % or higher in order for the final funds to be released. After the 90 % inspection was done we were told no funds would be released because counter tops in the kitchen weren't done. How can we continue to pay a contractor to get us to 100 % when 100 % of the funds have not been released. So we had to take out a loan in order to finish what was requested from Pennymac in order for funds to be released. I rescheduled the inspection and the inspector gave us 100 % on XX/XX/XXXX. I get called by Pennymac the same day the inspection was done to tell me since the home is now livable we are being removed from the disaster forbearance plan and have to make the 16 payments we are behind on or they will move forward with foreclosure. I asked to get transferred over to the loss draft department and get told they don't have any information on the inspection being at 100 %. To give them 4-6 days for the inspection to be submitted. I followed up XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX and get told nothing has been updated. Yet when we call the automatic message on their phone let 's us know that the final inspection has been updated to 100 % as of XX/XX/XXXX. I spoke with them again on XX/XX/XXXX and the agent on the phone said the inspection was not uploaded yet. Once I let her know that I heard the automatic machine tell me that we had 100 % inspection as of XX/XX/XXXX she put me on hold and verified and then finally agreed to submit the request for the final check release and once approved by the main department the check would be overnighted. I follow up a few days later and I get sent to the collections department. I get told that we have to make at least six payments for them to even approve our loan modification and that maybe that's the reason the final funds are not being released. After getting transferred to different departments we finally get transferred to the loan modification department and get told we might only need to make four payments to qualify for the loan modification since we are sixteen payments behind and maybe that way funds can get released. After we let the agent know that we had never been late before the disaster affected us she looks more into our loan and puts us on hold to speak to a manager who might agree with us not having to pay anything in order to get the loan modification. We get told to call back to follow up because the manager was busy. After following up we get no response in regards to the modification and get told the check release is still under review. I get a call from Pennymac on XX/XX/XXXX saying we now have to speak to someone in the single point of contact department. The agent lets me know that the final check amount is for the same amount that we are behind on. He would like to know if we want to use that final check to make the 16 late payments. I ask him why we were told that check was to be released to us yet they now have that check in their posession and want to use it towards the payments. I get asked why we have such a large amount left over after repairing the house, and I let him know that we had to use our own money and loans to finish getting the house at 100 % since they failed to release any remaining funds. He says the final check release will need to be approved by legal and after being put on hold I get told the {$21000.00} that we owe will be added to the loan and the new loan amount will be {$160000.00} and we will restart on a 30 year mortgage if the check is released to us. Our original loan was for {$150000.00} and as of XX/XX/XXXX we had {$130000.00} left. I get told the paperwork for that loan modification was mailed out to me on XX/XX/XXXX and the check will be sent overnight the same day XX/XX/XXXX. I called today XX/XX/XXXX and get told the check is under review and they don't know a release date. Meanwhile we are late on our mortgage, being told we will be foreclosed and we need to pay our personal loans we took out to fix the house.
Company Response: Closed with explanation

Timely Response

2018-12-21

KS

Charged fees or interest you didn't expect

Payday loan, title loan, or personal loan: Installment loan

Complaint: I was working with someone who said that he worked for PennyMac Loan Service. He said that he could get me a personal loan to pay for a property to fix and flip. He told me if I would pay a fee that I would get my loan transferred into my account. I paid all the fees that he said that I needed to pay and I still haven't gotten my loan yet. I went to the PennyMac site and filled out a request to be contacted and I found out this morning that he is not who he said he is. He said his name was XXXX XXXX and his email is XXXX.
Company Response: Closed with explanation

Timely Response

2018-12-19

VA

Trouble during payment process

Mortgage: VA mortgage

Complaint: Bottom Line Up Front : PennyMac is Required to Manage my Escrow Account per the terms of my loan. I notified them on XX/XX/2018 that they had paid my taxes partially, but not in full. I gave them the correct amount and contact information for the county tax office. They chose not to pay them or inquire with the county tax office. They finally inquired after the taxes were late and paid them. The problem was the late payment incurred a {$170.00} penalty that they took out of my escrow account instead of paying themselves. I was promised in writing and over the phone that if the taxes were not paid on time they would be responsible not me. Crucial Point : Why was PennyMac suddenly able to determine they had paid the taxes wrong in XXXX after the taxes were due, but not in XXXX before they were due? Why didn't they take the steps I asked them to take on XX/XX/XXXX that they took on XX/XX/XXXX? Summary : I have a required escrow account for taxes and insurance on my PennyMac Loadn. On XX/XX/2018 I reached out to PennyMac by their online secure messenger. I informed them that my property taxes were not being paid correctly, what the correct amount was, and contact information for the county to fix it. I tried and tried to provide them a digital copy, but I could not get their website to work. OnXX/XX/2018 at XXXX EST ( XXXX ) I contacted PennyMac by phone and informed them I couldnt get the property tax bill loaded ( See page 7 of XXXX Bill under call detail ). I was informed I would not be responsible for any late penalties and they would engage the county digitally and get the correct bill. After many phone calls after the bill was not paid at all on XX/XX/2018 I found out today XX/XX/2018 the bill was finally paid out my escrow. Additionally they paid the late fee out my escrow because it was paid after XX/XX/2018 ( {$170.00} ). Additionally on XX/XX/2018 I papered mailed them a copy of the property tax bill and they said they did not receive it.
Company Response: Closed with monetary relief

Timely Response

2018-12-18

Cordova, TN

Trouble during payment process

Mortgage: Conventional home mortgage

Complaint: Again I am trying to resolve my mortgage payment issue. I did try calling person listed on the complaint but I have yet to receive a return call. On today I received a letter stating that I have not made my XXXX and XXXX payments and I have. I have letters from my bank confirming monthly payments that have not been returned from XX/XX/2018 - XX/XX/2018. I still do not understand why Pennymac records arent correct. I will attach my bank statement which shows payments and no NSF fees and I have verified with my bank ( XXXX XXXX ) that payment for XXXX and XXXX have cleared. They will be mailing out this information to me within the next 24 hours. I only have a letter from the bank, on bank letterhead that states my XXXX payment was not returned, but paid and cleared. I do not have my XX/XX/2018 bank statement, however I have attached my detailed account summary that clearly shoes the payment.
Company Response: Closed with explanation

Timely Response

2018-12-18

Cocoa, FL

Trouble during payment process

Mortgage: VA mortgage

Complaint: This has happen for the second time in 2 years! Please see attached letter to and from mortgage company! They made a repeated mistake on the Escrow estimate for the second time in 2 years and expect me to pay for it! A so called Internal accounting error! XXXX XXXX XXXX XXXX
Company Response: Closed with monetary relief

Timely Response

2018-12-18

Bellevue, TX

Struggling to pay mortgage

Mortgage: FHA mortgage

Complaint: Im trying to avoid foreclosure. I've tried to do a loan modification on my home but Penny Mac wont open it up or even review it. Now I would like to do a short sale. I just really want to avoid foreclosure. but I feel like lender wont give me a chance for either option.
Company Response: Closed with explanation

Timely Response

2018-12-16

Bellaire, TX

Trouble during payment process

Mortgage: Conventional home mortgage

Complaint: On XX/XX/18, we suffered significant flood damage as a result of a defective toilet. After handling the claim with our insurance company, we endorsed a claim check over to Pennymac on XX/XX/18. They required that a significant number of documents be completed before any funds would be distributed to our contractor ( XXXX ) for repairs/restoration. Although we understand the need to assure that contractor is reputable and work is completed in a satisfactory manner, PennyMac sat on the funds, claiming that we had not provided the contractor 's bonding information and their contractors license. They were told multiple times that the Certificate of Insurance was sufficient, and bonding was only required for commercial contracts. We also told them multiple times that Texas does not issue contractors licenses for residential work ... only for work involving government entities. Finally, on XX/XX/18, a check was issued to us. We were having to live out of boxes, confined to one room in the house, with no furniture. We requested final inspection for completion of all repairs on XX/XX/18. After multiple follow-ups, an inspection was finally completed and the final inspection was approved on XX/XX/18. Their website indicates that funds are sent within 6 business days of final approval. I called on XX/XX/18 to request status of the final funds payment, and was told that the 6 day period does not include a process for reviewing the final check and cutting the check. They indicated that the check had been requested and would be mailed to us within 3 business days. Today, XX/XX/18, we still do not have the final check so that we can pay the remaining funds to the contractor. I have also had repeat problems in the past with inaccurate escrow computations ( and overpayments to taxing authorities ). PennyMac is terrible. Also, I believe that they engage in the behavior they have engaged in with the claims payment process so that they can " float '' on the funds for as long as possible before issuing payments. Please investigate these folks. There are numerous complaints regarding PennyMac.
Company Response: Closed with monetary relief

Timely Response

2018-12-15

Beyersville, TX

Trouble during payment process

Mortgage: FHA mortgage

Complaint: When we purchased our home in XX/XX/XXXX the lending company, XXXX XXXX, qualified us with a payment that only included property taxes on the unimproved land. The tax payment totaled about {$500.00} a year. The actual taxes on the improved land were about {$4500.00} a year. The difference in monthly payments was about {$350.00} per month which would have prevented us from being qualified due to the debt to income clause for FHA loans and also not to mention we could not afford a {$1400.00} payment at the time as we only had budgeted for {$1000.00}. Fast forward to XX/XX/XXXX when we received an escrow analysis letter. This stated our escrow account was negative {$4000.00} dollars and we had not been called or notified prior to this letter. The reason it was negative was due to the property tax bill being paid out of that account in XXXX for the proper amount of property taxes with the improved land, about {$4400.00}. The escrow account had been negative for over a year and we had not been notified as well as not seen the balance inside our online account with Pennymac. I called Pennymac after this to see if there was anything that we could do to mitigate this issue and not end up having to pay a total of {$8000.00} which was combined the negative balance from XXXX and XXXX. The original options they gave me were to pay the total up front, then my mortgage would only rise to {$1300.00} or spread the {$8000.00} balance over 12 monthly payments added to my mortgage, which would have doubled the payment from {$1000.00} to {$2100.00}. We could not afford this. When I called, they offered to extend the {$8000.00} balance from 12 monthly payments to 36 monthly payments which would then put the payment at {$1600.00} per month. This is then where we are, with a payment that went up {$650.00} overnight that we can not afford long term. We are burning our savings doing this and working two jobs. We could possibly lose our house because of predatory lending from XXXX XXXX and oversight on Pennymac 's side.
Company Response: Closed with monetary relief

Timely Response

2018-12-14

Atlanta, GA

Struggling to pay mortgage

Mortgage: Conventional home mortgage

Complaint: I have a loan with PennyMac Loan Services LLC. I have received a {$1000.00} tax reduction from XXXX County Tax Office. Twice I reached out to PennyMac about my tax deduction and provided them with a copy of my tax paper showing my deduction from the year of XXXX and it clearly stated my total estimated tax of the year is {$85.00}, that is what my taxes are at this moment and will further be due to my XXXX tax credit. The county and the city gave me my credit deduction, but PennyMac only gave me {$71.00}, when my total tax reduction should be {$1000.00} so they owe me {$1000.00} towards my tax reduction. PennyMac Escrow account department told me that my FHA Loan which they call Hazard Insurance and my personal insurance and property taxes on the home is all calculated in one bill, that's how they break it down and that's is the reason why they say they can't give me a large deductible back from my taxes. I called more than twice and I continue to receive the same answer from PennyMac. In XXXX of XXXX, I received a check from PennyMac {$1100.00}, the check was to reimburse me from overpaying PennyMac Escrow department for my taxes and the years of XXXX and XXXX, which I had to notify them about my overly high tax amount. I sent in a copy of proof of overcharge taxes. My Escrow bill was higher then what my payment and insurance came out to be, due to the overcharging of my taxes in their records. Pennymac sent me 2 statements explaining my escrow, miscellaneous assessment, my hazard insurance payments , county taxes, and city taxes. All that information does not have anything to do with my {$1000.00} tax reduction and it doesn't explain or show why I only received a {$71.00} tax credit from them. My total monthly payments were {$720.00} they only reduce my payment to {$640.00}. When my payments should be a lot lower than {$640.00} due to my {$1000.00} tax reduction. SN : I paid all my property taxes out of my own money to the Tax Commissioner of XXXX County, Ga.
Company Response: Closed with explanation

Timely Response

2018-12-14

IN

Trouble during payment process

Mortgage: Conventional home mortgage

Complaint: I contacted 3 individuals at Pannymac today. XX/XX/2018 - 2 Customer service agents and a Team Leader. My request was simple. To get a mortgage property tax exception in the state of Indiana you must file that a mortgage exist with the county recorder. Pennymac claims that they do not file mortgages with the county. They only pay taxes on the mortgage through 'XXXX '. Without this filing I can not get a Mortgage exception property tax reduction in the state of Indiana. Funny thing - the county recorder ( I talked with them 3 times ) said that if there is no mortgage filed - I can sell the house and the title company will find NO MORTGAGE on the house. Thus - I can keep every cent. Further - all they emphasize is that they are also a loan collector and anything you say can be used to collect monies. Funny thing. When you look up their executives on XXXX all of their contact are locked so you can't send messages. This should be a HUGE WARNING of what they think of customers.
Company Response: Closed with explanation

Timely Response

2018-12-14

Ft Lauderdale, FL

Struggling to pay mortgage

Mortgage: Conventional home mortgage

Complaint: I submitted a request to Penny mac in XXXX for a loan modification. This was my first attempt at loss mit and I had a period of unemployment before I started a new job. They immediately denied me for not being eligible until the I had the loan at least 12 months. I called them and they told me to reapply after XX/XX/18. I submitted a request towards the end of last month and they sent me a letter stating they were reviewing it and would reach out for any additional items needed. This is my first home, my first eligible attempt at a loan mod, and my loan was not yet in FCL. XX/XX/18 they sent me a letter with the same denial reason but I have had my loan more than a year and I was following their guidance they gave me in XXXX. I also just received a FCL notice from an attorney dated XX/XX/18 stating my home is now in FCL. It seems like they gave me wrong information in order to put me in a position where they can FCL on my home. Please help me.
Company Response: Closed with explanation

Timely Response

2018-12-13

Lk Buena Vis, FL

Struggling to pay mortgage

Mortgage: Conventional home mortgage

Complaint: On XX/XX/2016 the Judge XXXX XXXX XXXX XXXX XXXX. Denied the Plaintiffs Motion to Substitute Party. ( See Attached ). Now PennyMac want to collect money for me of engaging in business practices that are immoral, unethical, oppressive, unscrupulous, and harmful to me. ( See Attached ).
Company Response: Closed with explanation

Timely Response

2018-12-13

Napoleon, ND

Took or threatened to take negative or legal action

Debt collection: Mortgage debt

Threatened or suggested your credit would be damaged
Complaint: I went into the automated system to make my mortgage payment history on XX/XX/XXXX. I completed it and heard a confirmation number. I was driving and could not right the number down. I received a collection call the first week of XXXX. The person from Penny Mac said they needed to talk about my account and asked from my SSN. I asked why they needed to discuss my account and they said they needed to verify my SSN first. I refused, as I assumed this was a scam. I was called today XX/XX/XXXX. The person asked for my address. I provided it and apparently the automated system made and error ant the payment wasn't recorded. I immediately pooled up my account and verified the payment wasn't withdrawn. I paid the past due amount immediately on the phone. I asked them if they could make sure this late would not report to my credit. They refused to acknowledge the systems error. They could see I called in to the system on the XXXX. I have a perfect pay history. They also could see I call in the same time every month to make the payment, but said the could do nothing about it. They offered the address to file a written complaint, but by then the damage will be done and she reitterated they can't change the credit. They could report this to the credit as their system error. They just won't. I now will suffer a 30 day mortgage late on my credit. This is uncacceptable
Company Response: Closed with non-monetary relief

Timely Response

2018-12-12

VA

Trouble during payment process

Mortgage: FHA mortgage

Complaint: I received an escrow shortfall statement in XXXX from PennyMac, my mortgage company, stating that my escrow balance was short by {$440.00} and should be paid by XXXX XXXX. On XXXX XXXX I submitted via my bank account bill pay an escrow payment in the amount of {$450.00}, with a note that the payment was to be applied to escrow. The bank mistakenly applied the payment to my principal. In late XXXX I asked the mortgage company, via my electronic messaging account and a separate phone call, that the payment should be applied to my escrow and not to my principal, and that I wanted to make sure the escrow payment was properly credited so my account would not be penalized. I then paid the amount the mortgage company estimated I should pay if the escrow balance was paid in full ( XXXX ). In the meantime, I checked my account online and saw that the escrow balance was level and the payment had appeared to be corrected. On XXXX XXXX, I received a letter from PennyMac dated XXXX XXXX and stating that I owed another {$37.00} on my mortgage payment, making the amount due the same ( XXXX ) as if I had not paid my escrow balance. On XXXX XXXX, I called PennyMac and was told that " the system '' had kicked out my escrow payment because it was more than the amount owed and that my payment would be increasing to {$1700.00} ( despite no notice of this new payment ) because the local property tax payment ( which was made while my escrow payment was mischaracterized as principal reduction ) further depleted my escrow account. When I asked how I could get the monthly mortgage payment down further, I was told I could submit a {$140.00} payment to escrow on the spot ( I said I could pay but would do it later ). Referring to the XXXX XXXX letter, I asked if PennyMac would guarantee that I would not receive a late fee because I had paid my escrow payment and mortgage on time. I was told that that if I did not pay the {$37.00} PennyMac had requested in its XXXX XXXX letter ( which is in error because the total mortgage payment of {$1700.00} STILL assumes I did NOT pay the escrow balance ), I would be risking late fees and negative marks on my credit report, although I have paid all amounts on time. I told the representative I would pay and then file this complaint with CFPB because I was tired of PennyMac claiming " the system '' had made mistakes but would take no responsibility for mischaracterizing my payment ; ( 2 ) I was tired of being made to feel I had erred when I sent in my escrow payment and that everything they did was a result of my error ; ( 3 ) that they could not backdate my account to show the escrow payment when it was actually made ; and ( 4 ) that I was at risk of further penalties when I had paid all amounts on time. PennyMac refuses to properly credit my escrow payment, saying it can not backdate the payment, although it was made in advance of the XXXX XXXX due date. It also mistakenly requests additional funds for my mortgage payment, despite my paying the mortgage and escrow payments on time. I request that that PennyMac : ( 1 ) properly credit the escrow payment to XXXX XXXX ; ( 2 ) adjust ALL payments and credits from XXXX XXXX to the present accordingly ; and ( 3 ) credit any overpayment of my mortgage to my principal. I further request a written apology from PennyMac for the inconvenience they have imposed upon me despite my paying the mortgage and escrow shortfall on time. This chain of events is unacceptable. I have NEVER been late with my mortgage payments and it is ABSOLUTELY UNPROFESSIONAL that PennyMac would threaten me with late fees and negative credit marks when I am contacting THEM in an effort to correct my account. I DO NOT ACCEPT THIS UNPROFESSIONAL BEHAVIOR FROM PENNYMAC, and as a result of this, I can no longer trust PennyMac in my dealings with them.
Company Response: Closed with explanation

Timely Response

2018-12-12

Glendale, AZ

Trouble during payment process

Mortgage: Conventional home mortgage

Company Response: Closed with explanation

Timely Response

2018-12-10

Knoxville, TN

Struggling to pay mortgage

Mortgage: FHA mortgage

Complaint: I have been emailing them for months about my mortgage payments and even in the process of that withdrawn money from my 401k plan with penalties to get the money. Finally on Tuesday, XX/XX/XXXX Pennymac sends me the amount for reinstatement of my mortgage. Which had two amounts one if I paid by Monday, XX/XX/XXXX and another if I paid by Wednesday, XX/XX/XXXX. Which also stated that amount would be good for two weeks. However when I called them they said that the two weeks didn't apply because on Monday, XX/XX/XXXX was a foreclosure hearing and sale. After fighting with them by phone I figured my best bet is email so I would have documentation of everything. They postponed the hearing and sale they claimed for two weeks but have not sent any legal documents to confirm that. I continued to push for a dollar amount to bring my mortgage back up to date and after being told that it would take 7 days they sent that to me on Wednesday, XX/XX/XXXX. As I was checking on the fastest way to send the amount {$10000.00} to them I discovered that my bank XXXX sent them the payment. Now Pennymac claims that they do not have a record of the payment and I had to send them proof of the transaction which I have done three times. They still have not confirmed and posted the payment nor have they sent anything about a hearing tomorrow. My wife and I are taking time off from work to go to the courthouse in the morning with my proof again. I have researched online and there are several complaints about Pennymac pulling the same thing and much more. Pennymac needs to be stopped playing these games and unethical business practices. So helping me can be helping a lot of other homeowners who are doing the right thing or like with us correcting what happened to have a chance. Thank you XXXX XXXX
Company Response: Closed with explanation

Timely Response

2018-12-10

Milton, PA

Trouble during payment process

Mortgage: Other type of mortgage

Complaint: I thought that the mortgage company was my advocate and that the rules, contracts and documentation were in place to protect consumers like me, and my home- their investment. At every turn throughout this process I have trusted their expertise and have done what they instructed. I did not bring about this situation, but rather the mortgage company, due to their poor handling of this issue. I have done everything in my power to provide a safe home for my children and to hold on to this property that my husband and I worked so hard to buy. No one should lose life savings trying to save their home due to the practices of a fraudulent and deceptive contractor, and a mortgage lender who failed to properly assess the situation. I purchased a foreclosure home over a year ago with a XXXX Loan. The construction costs were estimated at {$70000.00}. The hired HUD approved contractor, XXXX XXXX, stopped working on the house over 6 months ago with the house in very much worse condition than when he started. My husband and I have since borrowed approximately {$70000.00} to finish the work that the contractor did not complete and to repair the damage that he did to the home. The house is now habitable and we are living in it, but the hurdle we are presently facing and the reason I am writing is a dispute with the mortgage company. Despite being detailed in my mortgage contract the remaining {$30000.00} of the construction portion of the loan has not been released to us for construction cost or, applied to the principal of the loan. Below I have laid out the progression of the situation over the last year and I have appended various documents that support and detail the situations noted. ( Reference document 1 ) The house was a HUD foreclosure and did not meet FHA guidelines. In order to purchase the home the only option was a XXXX renovation loan, we were approved and have our mortgage through XXXX XXXX XXXX XXXX. Shortly after closing the mortgage was sold to Penny Mac mortgage. They do not oversee the renovation and were unable to help me. Our contractor, XXXX XXXX, was HUD approved and upon being hired XXXX XXXX had us both sign an Owner and Contractor Agreement ( reference document 2 ). XXXX began demolition on the home and documented repairs he had made. However, these would later come to be found to be incompetent and erroneous ( reference document 3 ). For XXXX time and based on inaccurate documentation of work completed, XXXX was paid a total of {$30000.00} ( reference document 4 ) from the loan and we advanced him an additional {$11000.00} ( reference document5 ) Two inspections were completed in this time by the original HUD Consultant, who would later be fired for incompetence. XX/XX/2018 XXXX XXXX the County Code enforcer inspected and determined that the electrical panel was put in by XXXX illegally and as a result the home would then have to go through a rough-in electrical inspection ( reference document 5 ). For this reason, the bank put a freeze on the renovation loan until the home passed the inspection. XXXX informed us that he did not have the funds for payroll or, materials to complete the necessary repairs to and said he would not return until he received an advance. We were advised by the mortgage company to do what was necessary to pass the inspection to move forward with the renovation. XXXX claimed that he needed {$11000.00} to complete this work so we took out an additional loan to cover the cost. XXXX returned to the home and partially passed inspection, but did not follow through with the work noted by the Code Enforcer. Upon these issues the mortgage company replaced the HUD consultant. Following this, we had two electrical engineers XXXX XXXX and XXXX XXXX, come to diagnose and inspect. It was found that there were multiple live wires in the wall and some of the new electrical work completed by XXXX was staged to look complete. Without success despite numerous and strenuous attempts to contact XXXX about these discoveries and further unsuccess through the HUD Consultant a decision was made with XXXX XXXX to complete an Exit Inspection and to move forward without XXXX. The mortgage company advised me to return all the tools as well as, any construction material XXXX purchased, and to send him a certified letter that he was fired. Following this, I was informed by XXXX XXXX that the renovation was on hold until XXXX signed a letter verifying he had seen the Exit Inspection and was owed no further funds. This was completed and sent to XXXX XXXX ( reference document 6 ) We were unable to find another contractor that was willing to fix this work and start before the contractual deadline. On XX/XX/XXXX, XXXX XXXX indicated that we could hire tradesmen to do the work individually and we would reimbursed by the renovation budget after the passing of inspections that had {$41000.00} left after XXXX pay outs. My husband and I did this work and passed inspections to do so taking on {$50000.00} of debt. We have yet to see a reimbursement. XXXX XXXX blames this on a claim XXXX made to them of past and unpaid invoices despite the signing of Exit Inspection and verifying otherwise. XXXX XXXX encouraged us to fight this in the court system and freed part of the renovation budget to us, {$11000.00} to hire an attorney and do so. We thought that once the right to lien period of six months had ended the remaining {$30000.00} ( less the {$11000.00} in attorney costs ) of funds would be released so that we could complete the work. When we talked to the acting bank manager XXXX XXXX after the period had ended, she advised us that this was not true and we would need to sue the contractor and win in order for the funds to be released. She stated that in the event XXXX sued in the future they had to protect their assets and hold on to the money so there was no chance of them being liable. Multiple attorneys advised us that the contract with the contractor, that XXXX XXXX provided, was neither valid nor, enforceable in Pennsylvania leaving us with no basis to successfully sue XXXX. The arbitration clause in the contract was also not enforceable, so we were advised that it was a costly and futile option. ( reference document7 ) Our attorney has sent a letter to the Pennsylvania Attorney General noting various circumstances of violations from XXXX including lack of criminal history disclosure violations of Pennsylvanias Home Improvement Act, pursuant to P.S. XXXX, incorporation issues and a detailing of far and wide negligent work that exceeds the electrical issues noted here ( reference document 8 ). The courts agree with our case and are working on a judgement in our favor, but there is no timeframe to a conclusion and therefore, we can not foresee a settlement of the {$30000.00} through XXXX XXXX. At this point we have finished most of the renovation and the house is habitable. We were forced to move in because we could no longer afford two homes, even though there was no heat, and minimally functioning electric and plumbing. The courts are taking longer than expected and we can no longer afford our attorney. XXXX XXXX still holds hostage the {$30000.00} that is included in the total debt for the home that we pay a mortgage payment to every month without resolution of either crediting toward the mortgage or, reimbursing us personally. We have been informed by XXXX XXXX that we need to pursue this in the courts or, that they could hold the money indefinitely. This was not noted in any of our contract. We are desperate. We have pursued this through every agency that we possibly could. We will gladly provide any additional information, emails, affidavits, witnesses, receipts, invoices, photos, videos, and detailed inspection reports. We are out of options and out of money. I am hoping you can help us resolve this in a timely fashion or, advise us of how we can find a resolution. This lender apparently cares nothing about the people who entrust them with what is the most important purchase of their lives. With no legal proof or warning, they arbitrarily confiscated and held our funds. That they would allow someone to lose their savings, and potentially lose their home as well with no proven basis for withholding funding is outrageous. Despite the law being in our favor, they held our money without our consent and without any evidence of wrongdoing on our part. These actions lead to a spiral of disastrous events that are now irreversible. Every effect was the direct result of both the shady business practices of our contractor and incompetence on the part of our lender. I am not looking for a handout or nor do I think I am entitled to special treatment. However, given the circumstances, I ask you to take the time to go over the facts and objectively assess the situation. Was this fair, was this legal, and was this ethical? Thank you for your time. Thank you so much for your time,
Company Response: Closed with explanation

Timely Response

2018-12-05

Trenton, NJ

Struggling to pay mortgage

Mortgage: Conventional home mortgage

Complaint: PennyMac HAS engaged in the prohibited practice of dual tracking while having received timely all the required documents and financial information from the borrower requesting a loan modification. PennyMac has failed to deliver required foreclosure protections. PennyMac is using faulty information in the servicing of this mortgage loan. Please see attached letter correspondence dated XX/XX/XXXX, from the mortgage servicer, PennyMac Loan Services. The CFPB issued amendments on XX/XX/XXXX, The rule issued establishes new protections for consumers, including : Requiring servicers to notify borrowers when loss mitigation applications are complete : Whether a borrower is entitled to key foreclosure protections depends in part on the date a borrower completes a loss mitigation application. If consumers do not know the status of their application, they can not know the status of those foreclosure protections. The final rule requires servicers to notify borrowers promptly and in writing that the application is complete, so that borrowers know the status of the application and have more information about their protections. The CFPBs new rule clarifies that, if a servicer has already made the first foreclosure notice or filing and receives a timely complete application, servicers and their foreclosure counsel must not move for a foreclosure judgment or order of sale, or conduct a foreclosure sale, even if a third party conducts the sale proceedings, unless the borrowers loss mitigation application is properly denied, withdrawn, or the borrower fails to perform on a loss mitigation agreement.
Company Response: Closed with explanation

Timely Response

2018-12-04

PA

Struggling to pay mortgage

Mortgage: Other type of mortgage

Complaint: In XX/XX/XXXX I lost my job and in XX/XX/XXXX contacted PennyMac to assistance. I was offer an unemployment forbearance that lowered my payment to {$5.00} a month and told the remaining unpaid portion of my monthly payment would be added to the end of my loan.. Piece of cake, right? Kicked off the forbearance plan for having a payment bounce when I used a friends bank account due to personal issues with my bank. Guideline for the forbearance was being kicked off for 1 60 day late I was denied a modification in XX/XX/XXXX due to excessive DTI.. I was about {$800.00} short on other bills when they lowered my payment to XXXX $ back in XX/XX/XXXX. I disputed this with them and highlighted and mailed the USDA loss mitigation guidelines pointing out there endless errors and wrongful denial of the modification. Thankfully lost my job again in XX/XX/XXXX, yes thankfully because PennyMac started to file foreclosure paperwork and losing my job even though they knew I was still digging a deeper financial deficit and once I managed to get money together to final Chapter XXXX bankruptcy I was about 10 months behind. Filing bankruptcy was my only option to save my house because of the automatic stay that halts the foreclosure proceedings. I again applied for a modification and this time was offered a modification on XX/XX/XXXX which capitalized the payments that would end up past due a total of 13 months and extending my mortgage back to 30 years from about only 22 years remaining, not lowering my interest rate but did reduce my payment about {$23.00} a month.. Saving me after making all 360 monthly payments a huge amount of {$8200.00}. But allows them to not only collect and capitalize on the delinquent interest but then collect to for an additional 8 years tacked on to the end of my loan. I was forced to accept this modification and save my house and keep my mortgage out of the chapter XXXX bankruptcy saving my about {$150.00} a month for my bankruptcy repayment plan or include it in the bankruptcy making my repayment plan monthly amount {$800.00} for 5 years. Accepting the responsibility of an {$800.00} bankruptcy payment plus my other debts and my income currently wouldn't have covered all my payments leaving me in no better financial position than I was without bankruptcy and saving my home. My first payment was XX/XX/XXXX when I went online the beginning of XX/XX/XXXX to pay and it still reflected my old payment amount, I sent a message I was not paying until my information was updated since I have not seen any signed modification by the service company ( PennyMac ). I found out while calling in my payment that the modification was not approved by the bankruptcy court yet but would be XX/XX/XXXX and that my payment is being classified as a " trial payment ''. I was never informed of being put on this " trial payment '' nor what was happening with the modification process. I withdrew the money from my account so the mortgage payment wouldn't clear the account. I feared them not applying the payment to the agreement I signed in XX/XX/XXXX and keeping the money for the delinquent amount owed. I had no contact with PennyMac after they received my signed documents, never informed they had to wait to update the online account ... oh they can't record the signed modification packet that both myself and PennyMac executed. Therefore I have to assume they have not executed the contract for the modification and are deceptively collecting on the past due amount on the account not for the new terms of the note and mortgage. I found out this wasn't recorded yet by pulling court records through my current employer ( I work at a title agency ). However I did find to my surprise that back about 7 years my loan servings was " sold '' from XXXX XXXX XXXX to XXXX/Penny ... The assignment of mortgage that should have been signed and recorded at the courthouse was just recorded on XX/XX/XXXX.. Therefore technically PennyMac had no ownership in the note or mortgage they entire I time I have been paying them monthly, but while not following loss mitigation guidelines per USDA, but while filing foreclosure with their attorney, offering the original forbearance, the denial of modification, accepting and offering a second forbearance and providing a legal contract to modify my mortgage ... a mortgage they did not have the authority to do so. The modification was dated XX/XX/XXXX the signature date of the assignment of mortgages filed about 7 years late was dated XX/XX/XXXX. Penny Mac 's attorney is the " customer '' who filed the assignment. When I contact PennyMac to question this matter. I was quickly told I have questions that involve legal matters and I would get a return call from someone after he speaks with his manager. I would likely hear from someone in the bankruptcy division or legal department. I requested a copy of the modification showing my signature as well as Penny Mac 's signature and date and was told they have to get " approval '' for me to get a copy of the document. I was told the original gets recorded at the courthouse and then returned to PennyMac ... however it doesn't mean I can't possess and executed copy of the document to ensure I am paying what was agreed to in the paperwork I signed and had notarized. I need legal help and do not have the finances to pay for a litigation lawyer ... PLEASE HELP.. they are breaking laws and because I do not have money to obtain legal counsel I have my hands tied..
Company Response: Closed with explanation

Timely Response

2018-11-30

Brooklyn, NY

Struggling to pay mortgage

Mortgage: Conventional home mortgage

Company Response: Closed with explanation

Timely Response

2018-11-29

Baltimore, MD

Trouble during payment process

Mortgage: FHA mortgage

Company Response: Closed with explanation

Timely Response

2018-11-27

Gloucester City, NJ

Struggling to pay mortgage

Mortgage: FHA mortgage

Complaint: I am facing a foreclosure sale date on XX/XX/XXXX because my loan servicer Penny mac has denied me access to government assistance programs that they are required to offer homeowners with FHA loans backed by HUD. I have been trying to work with them and submitted my financial information numerous times, but they continually assign new people to my case, have changed my point of contact three times in the last three months and most recently told me that my documents had been received too late to review. I made sure to mail them in 6 weeks prior to my sale date and verified that the documents were in their office 40 days prior to the sale. However, Penny mac said it was too late and they would not even look at my documents. To make matters worse, they are breaking New Jersey protocols and laws by failing to offer state mandated mediation. I work as a XXXX XXXX and make a good living and could afford a fair and reasonable payment if Penny Mac would actually allow me access to all government programs. That is the issue here. My ex-husband and I bought this home in XXXX. We refinanced in XXXX to take care of a bad mold problem and had to gut the house to fix the problem. In XXXX we decided to refinance into a high interest FHA loan through XXXX XXXX XXXX so that we could get caught up on our bills. I had no problem making the monthly payments until my ex-husband and I split up in XXXX. I lost his income and it was hard to keep up. In XXXX my company was going through a tough time and told me they had to cut me back to 3 days a week. The combination of divorce and no income from husband and my reduction in hours led me to default on my FHA loan. I immediately contacted XXXX XXXX XXXX and explained the situation. They told me that HUD had programs available for employed homeowners who had lost hours and I made reduced payments for a few months. Then I was laid off and unable to make that payment and fell further behind. I hired a law firm to assist me but they ended up providing no help. I did not have a modification and I was out thousands of dollars. I tried repeatedly to apply for a modification through XXXX XXXX XXXX and after the loan was transferred to XXXX XXXX I continued to apply. I was not able to become approved for any help -- -the offers I received kept my payment the same, or increased it, there was no payment reliefthere was no partial claim offered where a portion of the arrearages would be removed from the balance and put into a silent 2nd. There was no offer of a special forbearance to make the modification more affordable. My interest rate right now is 6.5 %. I work as a XXXX XXXX and make a good living. I find it hard to believe that there are no programs through HUD that I qualify for that could offer some type of payment relief through modification and reduced interest rate or increased term, partial claim or special forbearance. The obvious truth is that Penny Mac has obstructed access to these programs and is denying me my chance and right to be considered for government programs designed to help people in my situation.
Company Response: Closed with explanation

Timely Response

2018-11-26

Bancroft Hall, MD

Trouble during payment process

Mortgage: FHA mortgage

Complaint: I have a mortgage with PennyMac and my monthly payment is {$3000.00} my address is XXXX XXXX XXXX XXXX XXXX, MD XXXX, and my name is XXXX XXXX, my phone number is XXXX, e-mail address XXXX On Saturday XX/XX/2018 I received my monthly statement and my XXXX payment was not posted, so today Monday XX/XX/2018 at XXXX XXXX I called PennyMac and I spoke with XXXX to check why my XXXX payment was not posted she said that PennyMac received my XXXX payment after XX/XX/XXXX, I explained to her that I pay through my bank account online every month and I was never late before and if she can give me credit for the late fee of {$89.00} she put me in hold for long time and when she came back on the phone she said that she will not give me the credit, I told her that it is my bank fault and I would like to speak to her manager then she put me on hold again for long time and then I spoke to XXXX the supervisor and she also refuse to give me credit for the late charge which it is my first time with the PennyMac to be late.
Company Response: Closed with monetary relief

Timely Response