Consumer complaint received 2020-08-15
Company: PENNYMAC LOAN SERVICES, LLC.
State: MA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I received a letter from PennyMac " Escrow Account Disclosure Statement '' dated XX/XX/2020. This letter stated that we would be having a significant shortage in our escrow account, and would need to pay an additional {$1100.00} per month to rectify this shortage. That would be a total of {$13000.00} this year, and it would be increasing our monthly payments by over 50 %. This letter came as a total shock ; we knew that our tax payments would be adjusted, but this was a serious change. 

I reached out to PennyMac about this by phone twice ( XX/XX/XXXX and XXXX, XXXX ) and also contacted via their online message portal at the PennyMac website on XX/XX/2020. When I first made contact, I was told that these issues are typically resolved or at least followed up within 10 business days. However, it is now XX/XX/2020 and I have not received a single response from PennyMac about the issue. My mortgage payment is due to increase by {$1100.00} for my next payment on XX/XX/XXXX. Each time I contacted PennyMac, I told them it was imperative that I get this issue rectified before my mortgage gets increased by such a high amount. 

I did my own research with the XXXX XXXX  XXXX, where my tax bills had been paid, and got to the root of the problem. I have documentation from the tax assessor in XXXX that gives a full description of the issue and suggestions for how to rectify it, but I need PennyMac to give me a response so that I know how to proceed. I can't do anything without their action, and they have not responded to me at all. I will offer a description of the issue that has caused our tax problems below : My home is a new construction. It is the 'B ' side of an attached Single Family Home, and I know that my neighbor at the 'A ' side has the exact same problem. The property here has been assessed at about $ XXXX for each side of the house. The house that had been here before was a small Single Family Home that was assessed at $ XXXX. We bought the home from a builder, who had paid the unadjusted tax rate for a property worth $ XXXX, when in fact the two new properties were worth a combined $ XXXX at the time we began ownership. As such, the taxes had been under-assessed when the construction company had ownership of the property and should have been adjusted to be paid by that owner. The tax adjustment for Q3XXXX happened in XXXX when we owned the property, and somehow the city billed us for an entire year within the two quarters we actually owned the house. Our tax rate should be just about {$6000.00} for the year, or {$1500.00} each quarter, but we were charged twice that amount, {$3000.00} for Q3 and Q4 XXXX. The tax record had somehow lapsed and not taken into account that we only owned the property for two quarters. This caused a negative balance in our escrow account which is the root of the issue. 

We need PennyMac to rectify the tax issue with the XXXX XXXX   XXXX and possibly with the previous owner who we bought the property from. We need PennyMac to give us an accurate adjusted escrow analysis once the issue is resolved. Their failure to even respond within the timeframe that they told me has made me raise the issue to the CFPB. 

I am attaching the following documents to support my case. 
" Escrow Account Disclosure Statement '' letter from PennyMac Tax bills from XXXX XXXX XXXX for the entire time I have owned the property Email from the XXXX XXXX, Principle Residential Assessor, XXXX XXXX  XXXX

Company response to consumer: Closed with explanation