Consumer complaint received 2022-05-05
Company: PENNYMAC LOAN SERVICES, LLC.
State: SC
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
On XX/XX/XXXX, I received a letter from my mortgage company ( enclosed ) saying that they sold it to a different mortgage company and that the terms of my loan remain the same after being sold. On XX/XX/XXXX, I received a letter from the new mortgage company ( enclosed ) saying they will pay the tax bill upon request. On XX/XX/XXXX, I received a letter from the insurance company notifying me of a renewal premium due notice ( enclosed ). I called them and asked why they were sending it to me rather than the mortgage company. They explained they had sent them a copy also and what they sent me was for my records. The renewal due date was XX/XX/XXXX. 
After being out of town for much of XXXX, I returned home and collected my mail. In doing so, I found various letters from the mortgage company ( enclosed ) telling me that I needed XXXX XXXX coverage on my home. this was very confusing to me because I had coverage and didnt understand exactly what they were referring to. I called them and they said they sent insurance company a check. Yet, on XX/XX/XXXX, I received another letter from my mortgage company ( enclosed please excuse the writing on the letter ) telling me that I wasnt covered and needed to get insurance. That is when I called the insurance company and they informed me that my mortgage company didnt pay the premium. I once again called my mortgage company and they told me that they had sent them a check. 
All of this was confusing to me because one minuet they said they paid it then the next minute they are sending me letters saying that I dont have coverage. At the end of the day, they flat out lied by not saying they didnt pay the premium. As a result, they brought a force-placed policy ; something I never heard of. My old premium was {$950.00}. Their new policy ( enclosed ) is a whopping {$2700.00}. Furthermore, I find it very strange to receive a letter from the mortgage company ( enclosed ) that my mortgage was going up as of XXXX XXXX because I didnt have enough money in escrow. That XXXX be because they didnt pay the premium and isnt fair to me and even then, they didnt inform me that they didnt pay the premium. 
According to the XXXX Mortgage servicing law, before I take any action against the mortgage company, I should send them a letter of error. On XXXX XXXX, I sent the mortgage company a notice of error letter ( enclosed ) for an explanation as to why they let the policy lapse and they passed the time limit for a response. It's now been XXXX weeks and they have not responded. 
Since they broke section XXXX of RESPA and failed to provide insurance payments to this property as agreed to and signed in documents at closing on XX/XX/XXXX, XXXX requesting that they immediately cancel the force-placed hazard insurance policy, and demand that they reimburse my mortgage account for the difference in the premium payments that they made to put the force-placed policy in force. I also demand that my former insurance policy be reinstated and if there is an increase in my new insurance policys premiums due to the cancellation, by law, my mortgage company should be responsible for paying the difference. 
At the conclusion of all of this, it boils down to one thing. My loan is escrowed, and my mortgage company didnt pay the renewal, insurance or property taxes and had to get a forced-place hazard insurance policy as a result. It seems they were headed in that direction from the start by not informing me they didnt pay. Now the forced-place hazard insurance policy has a higher premium as mentioned, that does not benefit me, it benefits them because they own the policy, I dont. I didnt sign up for this at closing and dont want to lose my home for their dishonesty. There is no way I can call this a mistake after viewing the evidence.

One last thing, viewing the forced-place hazard policy it clearly states that my home may not be fully covered. This a breach of contract because at closing, my home was fully covered. So, if something were to happen to my home and its not fully covered, I couldnt sue the mortgage company because I dont own the policy, they do. 
I hope you can help me and not let them get away with this. 
Thank you

Company response to consumer: Closed with monetary relief