Consumer complaint received 2016-09-02
Company: PENNYMAC LOAN SERVICES, LLC.
State: TX
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
In XXXX my mother was diagnosed w/XXXX. PennyMac was servicing my mom 's USDA Loan. Her loan was current but she was unable to pay the next payment because XXXX. My brother contacted PennyMac to inform them of my mother 's illness and impending death, and ask if we can temporarilly suspend the payments. Contrary to the USDA Loss Mitigation Guide the customer service representative ( CSR ) stated the mortgage had to be at least 30 days past due for them to do anything. My mom died on XXXX XXXX, 2016. We contacted PennyMac to inform them and ask what they needed. The CSR said to mail in the death certificate, and we faxed it on XXXX XXXX, 2016. My mother did not have a will. We decided that I would be the estate administrator. So, I contacted PennyMac to inform them I would be administering the estate, and to inquire about the estate 's options to forbear or temporarily modify the mortgage until the proper hearings and judicial determinations could be made in order to legally appoint me as the Administrator. They said that they were not allowed to speak with me about the mortgage until they received the death certificate. I called PennyMac every week until the death certificate was finally uploaded into PennyMac 's database on XXXX XXXX, 2016. After that, I attempted to contact PennyMac to discuss any forbearance or temporary moratoriums they could provide to our family until we could open the estate for probate and access my mother 's accounts and cash her insurance and employment checks. The CSR I spoke with informed me that they could only give me general information about mortgage assistance and the process, but was neither allowed to disclose any account information nor allow me to make any changes or requests on the account. PennyMac sent a certified Notice of Default and Intent to Accelerate to our deceased mother on XXXX XXXX, 2016, just 7 days after they had the death certificate on file. In XXXX, I filed to administer the estate. After, the waiting period, the clerk assigned the case to be heard on XXXX XXXX, 2016. Throughout this time period, PennyMac continued to deny all successors in interest access to or help with the mortgage, an ongoing and continuous violation of 12 CFR 1024.38. A PennyMac CSR did send a Request for Mortgage Assistance package to our deceased mother. I called to inquire about this, and they advised me that they would notate her death on the account! The CSR also advised that PennyMac would not accept it until they received administration paperwork. I inquired about making a partial payment and they me that PennyMac would not accept partial payment. PennyMac referred the mortgage to a law firm in Texas to begin foreclosure on XXXX XXXX, 2016. On XXXX XXXX, 2016 I was appointed Administrator and I immediately faxed the paperwork. I continued contacting them until they had the paperwork in their " system '' and thats when they said the mortgage had been referred to foreclosure. I also sent them a legal notice required by Texas law, and they responded by just mailing me a letter saying they tried to call me. I checked my phone records, and they never called. I applied to assume the loan but I was denied because the loan was past due. I applied to modify the loan or get a forbearance and told them I could start making the payments. I sent in three months worth of payments to show a good faith effort to keep the home. They kept requesting the will and proof of employment even though they already had the information that there was no will, and I am a XXXX veteran receiving income from the VA. Two weeks ago they acknowledged it was complete. I was denied two days ago. I did my own calculations using USDA guidelines and I should have been approved. I asked them to give me the figures they used so I could appeal. They said they did n't have them. They are no longer taking my calls.

Company response to consumer: Closed with explanation