Consumer complaint received 2019-09-20
Company: PENNYMAC LOAN SERVICES, LLC.
State: MA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I had a FHA loan for the past 2 years. In XX/XX/2019 I began the process of a refinance to get rid of my PMI. On XX/XX/2019 my loan was approved and I was set to close. On 4 different occasions in XXXX the closing had to be rescheduled from the XXXX XXXX. First attempt in XXXX, the XXXX XXXX didnt have the proper closing documents from the mortgage company and couldnt close. The 2nd time, the XXXX XXXX was a no show. The 3rd time the lawyer from the XXXX XXXX came out, we began the signing of closing and half way thru the packet there were words and paragraphs missing from the closing documents so the closing was nulled. The 4th time XXXX XXXX we finally signed closing documents. I was advised no mortgage payment was due on XX/XX/2019 since I just closed and the next payment was due XX/XX/2019. Since I had autopay on my mortgage they debited my account, I called to reverse the funds. I was refunded XX/XX/XXXX. On XX/XX/XXXX I was called by Pennymac Mortgage advising that we had to close again because the closing date didnt match with the documents signing date. I was supposed to get a refund of {$1700.00} ( cash in hand ). Never got this refund, never heard from Pennymac for about 3 weeks. I called almost everyday to get this situated. None of the representatives on the phone knew how to handle this situation. They knew someone dropped the ball on their end. On XX/XX/XXXX XXXX I paid my monthly payment, since the new loan was still on hold and not funded. While I waited for Pennymac to contact me, I reached out to other Loan Mortgage companies who ran my mothers credit who is my co-signer. They advised me her credit score was XXXX and that she only had 3 late medical bills that are affecting her score. They advised me if she paid these balances, the closing costs would be half what I was paying. When I signed closing documents on XX/XX/XXXX, the closing costs were about {$10000.00}, about XXXX was from paying for points to obtain a 4.125 % rate. If Pennymac told me to fix my moms credit and then reapply to save myself XXXX, I would of done this instead of going through with the loan. At this time I emailed Pennymac  and advised them to cancel this new loan. The loan officer called me back and tried to knock down the price of closing, told me he was able to get to loan down to {$420000.00}. Which saved me about {$3000.00}. My initial loan amount was XXXX, after 2 years of paying my mortgage I was able to bring down the balance to XXXX. After refinancing, the mortgage went back up to XXXX. I didnt want to proceed with this, as I was not looking for a case refinance. I just needed to get rid of the PMI. Doesnt make sense to refinance and the loan amount goes back up to XXXX just to save XXXX/monthly ( PMI ). The loan officer was able to get some lender credits and advised me the new mortgage loan amount would be XXXX. Now we are in XXXX, and they advised that I still needed to sign some documents in order for the new loan to get funded and processed. I still have no made XXXX mortgage payment. Finally I get a call from the VP of customer relation by the name of XXXX XXXX, who advised he was going to get this resolved. Keep in mind XX/XX/XXXX my loan was approved, 4 different times the ball was dropped on closing, and even after signing the documents, they told me I needed to close again, never heard back from the loan officer for 3 weeks, called into Pennymac everyday, was told this was escalated and I was going to get a call back. Never did. The processing agent, XXXX XXXX who was working with me throughout this process, never kept me posted on what was going on, he ignored my emails and phone calls. Once this went to the VP, XXXX XXXX, he advised me they can not compensate me for waiting 60+ days, since the loan was signed and closed, so they couldnt take anything off the loan amount, but even after signing I was able to call Pennymac and talked to XXXX XXXX who was the original representative I talked to, and he was the one who credited me XXXX. The end result was the VP advised me I did not need to re-sign, Im still waiting for the loan to get funded, I have no made a payment to my mortgage for XXXX, and Im waiting to be compensated as I waited 60+ days to close. 

** Also now on my credit it shows 2 open loans, with a total balance of XXXX, on both my mothers and my credit reports. ** My escrow balance paid off my homeowners insurance for XXXX but I was charged {$2000.00} in my closing costs for homeowners insurance, I was supposed to get a refund for this, also havent gotten this. 

Even after this loan as closed, I never got to skip the following months payment, I closed in XXXX, I paid XXXX payment so far, have not made XXXX payment yet, was due XX/XX/XXXX, but the portal states the loan has not been funded yet.

Company response to consumer: Closed with monetary relief