Consumer complaint received 2020-02-19
Company: PENNYMAC LOAN SERVICES, LLC.
State: AL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
my account number is XXXX. I have been a loyal and satisfied customer of Penny Mack since your company purchased my loan. In XX/XX/2017, I was having a financial hardship do to my mother becoming ill and did not have adequate health insurance. I contacted Penny Mac to discuss my situation and the customer service representative recommend me to enroll into your loan modification program because I did not adequate funds to make my XXXX mortgage note. 

I immediately contacted Penny Mac and explained my situation regarding my mother. The representative recommended me to request a loan modification to restructure my loan to offset bordon on the reoccurring and future medical expenses. Around XX/XX/2017, I paid Penny Mac {$1000.00} toward my loan as a partial payment. I filled out the Mortgage Assistance Application paperwork and provided all the required documentation ( s ). I finished all the requirements and monthly payments during the modification period. About 8 months later I checked my annual credit report and noticed that my credit score had dropped over a hundred points and Penny Mac was reporting me delinquent for 6 consecutive months. From XXXX XXXX you reported I was 30 days past due and 60 days past due in XXXX. During my investigation, I found out that Penny Mac did not disclosed all my options regarding the shortage in XX/XX/XXXX. He only recommended a loan modification as an option and accepted my partial payment of ( {$1000.00} ). Not  at any time during this conversation he discussed taking funds out of my escrow to cover the remainder of my payment. He never discussed what is outlined your Partial Payment Policy referencing for escrowed loans, where you would accept a payment that is less than your periodic payment by an amount up to {$50.00}. Penny Mac could have taken money from my escrow account to make the full periodic payment. ( I had money in my escrow account to cover my payment ) He did not advise me that this may cause an escrow shortage in the future, which will result in an increase in my payment. He did not research and or advise me regarding the option to use a corporate advance, which will be billed to my account, to make the full periodic payment based upon the requirements of my loan documents, owner/ insurer/guarantor of my loan or applicable law, and depending on the status of my account ( which was CURRENT ), partial payments that are outside the tolerances described above may be promptly returned to me, applied to my account, or held in a non-interest bearing account until additional funds sufficient to equal a periodic payment are received. ( XXXX payment should have been sufficient to cover both months if my escrow was used ) During the whole modification process I complied with everything that was requested during the trial modification period. Penny Mac held my payments in an interest bearing account and not applied to my mortgage payment. I inquired why my payment statements keep going up are and the representative stated it just the computer. I also explained that poor credit can affect my credit score.

Penny Macs poor or vague business practices has caused my credit score to drop over 100 points, placed my total quality of life in jeopardy. This situation 1 )  has placed my job as XXXX XXXX XXXX XXXX XXXX XXXX XXXX in jeopardy. 2 ) Potentially have my security clearance suspended or revoked ; 3 ) other creditors are periodically looking at my credit report and some of my creditors have lowered my credit limits because Im now look at as a risk and this has affected my debt to income ratio ; 4 ) My car insurance just went up based upon credit worthiness. Because of my scores and delinquency history, I had to get loans from subprime lenders at an interest rate on 30 % to fix and upgrade my rental properties. I was denied to get approved for a cash out, HELOC or refinance my property. These events has caused extreme mental anguish and sleep denervation. I feel that Penny mac poor and deceitful business tactics has destroyed my life and right now it is hard to not see a light at the end of the tunnel. As a single parent and running one of four XXXX  XXXX  in the role of XXXX XXXX XXXX XXXX it is my duty to reach out to you with reason to rectify this issue. Im not asking for any money or credits to my account. Im requesting Penny Mac to correct my credit report because I was making timely payments and I also need the following information.

1 ) I am requesting a detailed letter referencing your final decision, who was involved in the decision process, policies/statues to support the decision to include procedures regarding depositing clients funds in non- interest bearing accounts without their I have great coping skills and I am really concerned about consumer practices that may appear to be Predatory. I think that there areas of misrepresentation ( s ) or deceit concerning the modification process. It appears that the only interested that is protected is the investor ( s ) and their company. I have served the great Nation for over 35 years, 24 years in uniform and 12 years XXXX XXXX XXXX. I have seen too many of my mission partners and warfighters give the ultimate sacrifice to preserve the American Dream. Right now I feel that my son and I are under hostile domestic fire from people who have lost sight that we are still at war. The question that comes to mind is has our American values dissolved to de-money verses Democracy. I feel it is my duty that brief Senior Leaders on the Hill, DOD and Department of Veterans Affairs regarding this matter because many of my Soldiers and Civilians have went this route. Financial problems is the second risk factor associated with suicide. Secondly, this correspondence, all documentation and your written reply will be forwarded to the Real-Estate Commission, XXXX XXXX XXXX, XXXX XXXX XXXX, and any news and veteran social media site to prevent this unjust action to happen to them. As a long-time customer in good standing, I respectfully request that they apply a goodwill adjustment to remove the late payments from my file.

Company response to consumer: Closed with explanation