Consumer complaint received 2021-03-26
Company: PENNYMAC LOAN SERVICES, LLC.
State: MA
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
Pennymac has increased my mortgage by an extravagant amount which is unwaranted. In XXXX XXXX 2021, there has only been a XXXX dollar increase in my insurance, and only an XXXX dollar increase in my Property Tax. Therefore, the total annual increase for my combined taxes and insurance is XXXX dollars. Without justification, PennyMac is asking me to pay them over XXXX dollars for 2021 and increasing my mortgage payment by XXXX dollars per month. Every year, PennyMac is making me pay escrow backpay for the previous year 's escrow buffer, plus the current year 's buffer - and I am still ending up short at the end of each year because Pennymac expects the previous year 's escrow reserves to be paid twice. 

Without the 2 month reserve/buffer, my annual property tax/insurance increase of XXXX should only require XXXX to be added to my total annual escrow needs ( XXXX = XXXX x XXXX = XXXX ) and only a XXXX dollar increase to my monthly escrow amount. My current escrow is XXXX. With the XXXX increase, my new escrow should be XXXX. When including the two escrow reserve payments of XXXX ( XXXX x XXXX ) and dividing that monthly, the reserves add an additional XXXX per month ( XXXX = additional XXXX. ). My new escrow payment should be XXXX ( new amount XXXX based on property tax/insurance increase, plus the XXXX reserve amount ). 

My mortgage payment should only increase by XXXX ( XXXX minus existing XXXX current escrow ). My new mortage payments should equal XXXX. PennyMac states my new mortgage payments should be XXXX - they are asking for XXXX MORE THAN REQUIRED BY LAW! For a XXXX dollar increase in taxes and insurance - PennyMac is asking me to pay XXXX annually, which is not warranted. 


I am fully aware of the requirements to have 2 months of escrow in reserves. I explained this over and over again on the phone to the PennyMac representative. PennyMac is unable to justify increasing my mortgage by XXXX annually for a XXXX dollar TOTAL increase in property tax and insurance. 

Nobody from PennyMac called me back or tried to call me back. The representatve I spoke to told me " PennyMac estimated a semi-Annual Property Tax payment of XXXX '' - which is illogical considering I never having paid less than XXXX for a semi-annual payment since I owned the home and my lowest semi-annual payment of XXXX was almost 10 years ago. I told her that did not make sense and she said she would look into what happened. 

PennyMac also states the following " The most significant factor affecting the payment increase in 2021 was an increase in both your taxes and homeowners insurance. This resulted in a projected escrow shortage of {$390.00} and a shortage in the reserve of {$690.00}. '' As calculated above, the total increase to my monthly escrow amounts should be XXXX. PennyMac is also denying that I made ( and that they received XXXX an additional payment last year THAT THEY BILLED ME FOR SEPARATELY based on their " recalculation '' of my escrow - which I have proof from my bank that I did pay. 

I do not want my case closed until it is fully examined by a CFPB examiner. Thank you.

Company response to consumer: Closed with non-monetary relief