Consumer complaint received 2020-03-24
Company: PENNYMAC LOAN SERVICES, LLC.
State: KY
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Their investigation did not fix an error on your report

Complaint:
I secured my original mortgage with PennyMac on my primary residence in XXXX of XXXX. In XXXX of XXXX I was pursuing a mortgage refinance that involved paying off my existing PennyMac mortgage and closing on a new mortgage with XXXX XXXX XXXX. I closed on this new mortgage on XX/XX/XXXX and the disbursement date was to be XX/XX/XXXX - including the payoff of my PennyMac mortgage by XXXX XXXX XXXX. 

As such, my mortgage consultant with XXXX XXXX   indicated to me via email that I did not need to make an XXXX payment on my PennyMac mortgage. This was my first experience refinancing a mortgage, and perhaps naively I believed my mortgage consultant that I did not need to make my XXXX payment if I closed on XX/XX/XXXX. 

Ultimately, XXXX XXXX XXXX  acted negligently and did not payoff my PennyMac loan until XX/XX/XXXX, despite the fact that the new XXXX XXXX XXXX   mortgage was funded by XX/XX/XXXX. XXXX XXXX XXXX also did not take any steps to notify me that the payoff of my primary mortgage would be delayed. 

Since I was instructed not to make an XXXX mortgage payment by my mortgage consultant at XXXX XXXX   and XXXX XXXX XXXX took 35 days to payoff my existing mortgage after closing, PennyMac recorded my XXXX mortgage payment of {$940.00} as 30 Days late and reported this information to the following credit reporting agencies : XXXX, XXXX, XXXX and XXXX. 

Upon noticing that this 30 Day late payment had been reported through the use of XXXX XXXX 's online credit monitoring platform, I composed the attached " Credit Request '' document for PennyMac and mailed it to their correspondence unit on XX/XX/XXXX. 

In this document I outlined the same sequence of events as above, and I also included evidence that my personal checking account ( XXXX ) had adequate funding throughout the entire month of XXXX to make the required payment. In fact, this account had a closing XX/XX/XXXX balance of {$8200.00} and at no point during the month of XX/XX/XXXX was this account balance less than {$4000.00}. 

I believe this demonstrated that I had ample funds to make the required XXXX payment and therefore that the missed payment was not a result of my financial inability to pay. I attempted to explain to PennyMac that the payment in question was not late due to my lack of creditworthiness as an individual, but rather reflected extraneous negligence on behalf of two companies that I was working with as part of the mortgage refinance process. As such, I requested that the 30 Day late payment be removed from my credit reports. 

PennyMac issued a response on XX/XX/XXXX from their research department in which they stated " As the late payments were not a result of a PennyMac error, we must respectfully decline your request to update the credit reporting for this time period ''. 

I am now filing a complaint with the CFPB as I believe PennyMac is being unreasonable in not adjusting their credit reporting despite the case I have made. I believe I have outlined in very clear terms how this late payment did not occur due to my lack of credit worthiness or ability to pay. As such, I don't believe this late payment should negatively impact my personal credit score for the next 7 years, which will drastically impact my ability to secure future lines of credit at reasonable interest rates.

Company response to consumer: Closed with non-monetary relief