Consumer complaint received 2021-01-25
Company: PENNYMAC LOAN SERVICES, LLC.
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
In XX/XX/XXXX escrow analysis Penny Mac entered incorrect increase of my hazard insurance amount from {$3100.00} to {$8700.00}. This caused an increase in my monthly mortgage payment from {$1100.00} to {$1600.00} effective XX/XX/XXXX. This mistake was not noticed until XX/XX/XXXX. 


Due to COVID I went on forbearance and missed payments for : XXXX, XXXX, XXXX, and XX/XX/XXXX. Missed payment amounts were incorrectly calculated as such : XXXX {$1100.00} XXXX- {$1600.00} XXXX {$1600.00} XXXX {$1600.00} Escrow analysis : attempt to fix hazard insurance/monthly payment On XX/XX/XXXX and XX/XX/XXXX escrow analysis was performed to correct the hazard insurance amount from {$8700.00} to {$3100.00}. New monthly payment reflected on these escrow analyses was {$1100.00} I was later informed by a supervisor that due to the correction ; I now had an Escrow deficiency of {$1700.00}. This deficiency as explained was due to the fact that in order to correct the mortgage payments the supervisor had to back date the information to XX/XX/XXXX. This attempt at correcting the mistake created an escrow deficiency and a new mortgage payment in the amount of {$1200.00}. This was a different amount from the {$1100.00} as shown on the XX/XX/XXXX and XXXX/XXXX/XXXX escrow analysis. It was explained to me that my options were to pay the escrow deficiency in full or pay the {$1200.00} over a 12-month period. This was the only way to have correct monthly payments and correct amount on my partial claim. I paid the {$1700.00} in full on XX/XX/XXXX. With this payment in full, my monthly payment would remain as {$1100.00} until XX/XX/XXXX. This of course would prove to not be entirely accurate. 

Escrow error : The escrow shortage of the {$1700.00} is for the months that mortgage was not paid. By paying this shortage in full, Ive met my escrow requirement in full for the missed months. Why then is it that the ESCROW part of the monthly payments for the 4 missed months is being added to the back of the loan? Only the PRINCIPAL/INTEREST portion of those 4 months would be outstanding. PennyMac would be collecting escrow twice. ( once from me and again in the partial claim payment from HUD ). When this question was presented to the representative, I was informed that during a forbearance no outstanding escrow was to have been collected. I was also informed that this money would be returned to me once the modification was completed. This again was incorrect Partial claim error : My first partial claimed showed that I owed {$6500.00}. I did not agree Second partial claim showed {$6500.00}. I did not agree. The amount reflected was calculated at incorrect mortgage amount of {$1600.00} x 4missed months.

Third Partial claim was for {$4800.00} which reflected as 4 missed monthly payments : Month 1- {$1100.00} Month 2 - {$1100.00} Month 3- {$1200.00} Months 4- {$1200.00} I did not agree with the amount for months 3 and 4 being that the escrow deficiency was paid in full. The monthly payment should have been reflected as {$1100.00}. I eventually signed the partial claim document in the amount of {$4800.00} because it was explained to me that another escrow analysis/redrawing the partial claim documents would not be in my favor. Once modification was closed my escrow payment would be returned to me so I accepted. 
I was also informed that until the modification was closed and my loan made current, I would have to continue paying the incorrect monthly payment amount of {$1200.00}. I was informed that once the modification proceeding was closed, I was to request an escrow analysis because it would reflect excess money owed to me due to paying {$1200.00} monthly instead of {$1100.00} ( this is {$140.00} more monthly than agreed ). I find it unreasonable that PennyMac collected my escrow shortage in full but then ask me to cover for their mistake by paying higher monthly payments of {$1200.00} instead of {$1100.00} with the promise that money would be returned to me. With payments of $ XXXX {$540.00} goes to escrow, with payments of $ XXXX {$680.00} goes to escrow. My escrow should reflect the overage. 
With no resolution in sight, I resumed making monthly payments in the amount of {$1200.00} starting XX/XX/XXXX. 

Payment record for XXXX : XXXX {$1100.00} XXXX {$1100.00} XX/XX/XXXX- {$1100.00} XXXX XXXX XXXX XXXX XXXX {$1100.00} XXXX XXXX {$1100.00} and {$1700.00} ESCROW XXXX {$1100.00} XXXX {$1200.00} XXXX {$1200.00} *** ( XXXX payment of {$1100.00} went to cover XXXX missed payment of {$1100.00} ). I was not short any money on this payment because the new payment change to {$1100.00} effective date was XX/XX/XXXX ) It was explained that PennyMacs method is to use the most current paid month and apply it to the first missed month as illustrated in the diagram. With this in mind, whatever 4 months remained outstanding, the monthly payments should be accurately calculated at {$1100.00} X 4 months. My outstanding balance should be at an estimated {$4500.00} with the escrow payment of {$1700.00} returned to me. 

Modification error contd. 
I was contacted on XX/XX/XXXX by PennyMac and told that I now owed an additional {$1800.00} on top of the signed partial claim amount for {$4800.00}. 
I was told that my only options were to pay the {$1800.00} in full and have the {$4800.00} added to the back of the loan, OR have new partial claim documents drawn in the amount of {$6700.00} because HUD will not be paying on my partial claim, OR pay the {$1800.00} now and then have escrow try to correct the mistake with the promise of getting my money back again. I do not know where the additional {$1800.00} came from because no one has been able to account for, or explain this new shortage.. PennyMac continues to force me to pay shortages while on forbearance. This is unacceptable and against PennyMacs own forbearance policy. 

***I was also told that I paid the incorrect amount for XX/XX/XXXX. I paid {$1100.00} instead of {$1200.00}. This is the amount I was told to pay by the representative who took the payment over the phone on XX/XX/XXXX. I was concerned about this amount due to past conversation. It had been about 2 months since signing/notarizing partial claim so I asked if the figure was as a result of the partial claim being finalized. I was informed that yes, sometimes part of the partial claim is completed while other parts may still be updating, but {$1100.00} is what the system is showing. Wait until about Monday and your online account access should be updated to reflect modification being off your account. she annotated the account to reflect my concerns. 
Let me reinforce- without all of PennyMacs mistakes, my monthly mortgage payment is, and will remain {$1100.00} up until XX/XX/XXXX. I was not short on XX/XX/XXXX payment. All payments ever made in the amount of {$1200.00} was done so with a guarantee of the overage being refunded to me once partial claim was completed. Not sure how this will affect me moving forward or what is the correct amount to pay because I paid the {$1200.00} under the guidance of PennyMacs representatives that money would be returned, but now PennyMac is reporting another shortage. I should not have to continue to pay incorrect amounts in order to cover for PennyMacs mistakes. 

Every representative with whom Ive spoken to have all been able to identify mistakes on my account, but yet insist that it is not within their ability, or their computer softwares ability to correct it. I get transferred around from one department to another, from one supervisor/lead to another. Numerous incorrect recommendation and advice. Ive spent up to 3 hours on one phone call explaining the errors with promises that they will look into it and call me back which has not happened. It has been almost a year long process and still there is no resolution in sight The advice is always to pay additional money in order to correct the mistake with the promise that escrow will then update my account and I will have an escrow overage which I will be able to use at my discretion- ( request refund check or apply excess monies to monthly payments ). I was told this with : the escrow shortage payment {$1700.00}, the incorrect monthly payments of {$1200.00} instead of {$1100.00}, and now again with the requested payment of {$1800.00}. 

I am also very concerned that PennyMacs incorrect calculations will affect my XXXX Federal Income Tax Filing as you will be reporting incorrect figures for XXXX. 

still no resolution to date. 

.

Company response to consumer: Closed with explanation