Consumer complaint received 2017-09-09
Company: PENNYMAC LOAN SERVICES, LLC.
State: UT
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
This is a summary of all the dates, phone calls, and notices I have received up to this point concerning PennyMac not informing the insurance company that they had bought my mortgage and not informing me of the lack of insurance for over a year untilXX/XX/XXXX I took out a mortgage through XXXX XXXX in XXXX XXXX. I had purchased a XXXX XXXX XXXX XXXX policy ( # XXXX ) for the house onXX/XX/XXXX for the year of XX/XX/XXXX XX/XX/XXXX through XXXX XXXX XXXX ( XXXX ) for {$290.00}. The paperwork stated that the mortgage company would pay for my insurance and taxes through my escrow account. 
XXXX XXXX XXXX sent me a letter datedXX/XX/XXXX with my policy and a cover letter that stated, Your premium is paid by your mortgage company. A detailed billing statement will be sent to your mortgage company 15 days prior to your payment due date. 
I received 2 letters dated XX/XX/XXXX from PennyMac. One was a letter that was informing me that effectiveXX/XX/XXXX, PennyMac would be servicing my loan and how to make my payments of {$840.00}. The other letter was entitled Notification of Assignment, Sale, or Transfer of Your Mortgage Loan. This letter stated, Please note, this letter does not require any action to be taken on your part but is simply a courtesy notification of the assignment, sale or transfer of your mortgage loan. 
OnXX/XX/XXXX, PennyMac sent a letter that stated a recent review of your loan indicates that we do not have current homeowners insurance policy information on record for your property. Please contact your agent and have them fax the policy to us. 
On XX/XX/XXXX, I called PennyMac. They informed me that I had not had home owners insurance since XX/XX/XXXX 
On XX/XX/XXXX I went into XXXX XXXX and spoke to XXXX. He stated that my policy was cancelled by XXXX XXXX on XXXX/XXXX/XXXX for non-payment. The renewal notice ( XXXX/XXXX/XXXX ) and cancellation notices ( XXXX/XXXX/XXXX & XXXX/XXXX/XXXX ) were sent to XXXX Mortgage. The notice dated XXXX/XXXX/XXXX was also sent to me but I did not receive it. 
XXXX also was able to tell me that someone called on XXXX/XXXX/XXXX and requested my current declaration page. XXXX faxed it to them on XXXX/XXXX/XXXX. The declaration page clearly states that the policy was for the year XXXX and XXXX XXXX  was listed as the Additional Interest. XXXX stated that XXXX XXXX and his agency were never notified that PennyMac had bought my loan in XXXX. 
On XXXX/XXXX/XXXX, I purchased a policy with XXXX XXXX XXXX XXXX XXXX for XXXX XXXX XXXX XXXX ( XXXX ) for {$480.00} through XXXX XXXX. 
On XXXX/XXXX/XXXX, someone from the insurance company came out and took pictures of the house. 
On XXXX/XXXX/XXXX, I received a letter stating that I had an escrow shortage. I paid {$190.00} on the phone to PennyMac while speaking to their representative, XXXX. This allowed me to keep my monthly payments to go up only to {$860.00}. 
On XXXX/XXXX/XXXX, I received a letter from PennyMac dated XXXX/XXXX/XXXX stating they had received my insurance information for XXXX, but we are unable to verify coverage from XXXX. If you fail to provide us with satisfactory proof of hazard insurance, we will buy insurance to cover XXXX/XXXX/XXXX - XXXX/XXXX/XXXX at your expense, which will be billed to your escrow account or added to your loan. The insurance we buy : o Will cost an estimated {$1100.00}, which may be more expensive than insurance you can buy yourself. 
o May not provide as much coverage as an insurance policy you buy yourself. 
On XXXX/XXXX/XXXX at XXXX, I called the PennyMac Insurance Department and spoke with XXXX. I explained the letter and asked why PennyMac never informed anyone that they had my mortgage. XXXX put me on hold, came back and said that I would have to pay it, I stated I would not since I could not have possibly known I did not have insurance, XXXX put me on hold again, came back on the phone and stated that she would have to investigate and her supervisor had told her that if PennyMac was found to be at fault I would not be held responsible. She stated that she would get back with me by the following Friday. I replied that I wanted an answer no later than Thursday. 
On XXXX/XXXX/XXXX at XXXX, I received a call from XXXX. I did not answer because I thought it was spam. A voice mail was left from PennyMac. I called back at XXXX and was transferred to another person and again left a voice message. 
On XXXX/XXXX/XXXX at XXXX, XXXX XXXX with PennyMaXXXX called me. She informed me that they had received a declaration page from XXXX stating I had insurance for XXXX on XXXX/XXXX/XXXX. She then also said that XXXX XXXX should have informed XXXX XXXX of the mortgage change. She said it was XXXX fault at XXXX XXXX so I would have to work it out with him and I would have to pay the {$1100.00}. 
On XXXX/XXXX/XXXX at XXXX, I called XXXX at XXXX XXXX and asked if I could buy retroactive insurance for the year XXXX. He informed me that it was against the law to buy retroactive insurance. I also requested a copy of the declaration paper that was sent to someone on XXXX/XXXX/XXXX. 
On XXXX/XXXX/XXXX at XXXX, I called PennyMac back to talk to XXXX XXXX. I was told she was away from her desk. They took a message that I wanted to have a phone call the next day with her while XXXX was on the phone with us. 
On XXXX/XXXX/XXXX at XXXX, XXXX XXXX called and then got XXXX on a 3 way call with us. XXXX was able to tell us that the person who called on XXXX/XXXX/XXXX was with XXXX XXXX XXXX. Neither XXXX nor XXXX had a record of the name of the person who called. XXXX pointed out that it clearly stated on that declaration page the term year and that XXXX XXXX was the additional interest holder. XXXX stated that was not PennyMacs fault. It was my responsibility to inform my insurance agent of the mortgage change. XXXX asked if I could get a lower premium from them. XXXX stated that it was {$1100.00} because they use blind insurance companies who do not take pictures. I asked for her supervisors name and number. She provided XXXX XXXX at XXXX. 
On XXXX/XXXX/XXXX & XXXX/XXXX/XXXX, I called XXXX XXXX and left messages asking for a return phone call. I never received a call from her. 
On XXXX/XXXX/XXXX, I called XXXX XXXX to see if they could help me. 
On XXXX/XXXX/XXXX, I received a phone call from XXXX XXXX with XXXX XXXX after sending an email reaching out to him. We called XXXX XXXX to see if they had a record of any cancellation notices. They showed XXXX/XXXX/XXXX & XXXX/XXXX/XXXX to XXXX XXXX. 
On XXXX/XXXX/XXXX, XXXX XXXX and I called to talk to XXXX XXXX with PennyMac to try to find out when notices of cancellation had been sent to me in XXXX. XXXX XXXX was not available so we spoke to another representative. After 41 minutes of being put on hold while she read through the notes, she said they would have to call me back. I stated that school had started I could not be reached until XXXX because I am a teacher. 
On XXXX/XXXX/XXXX, XXXX XXXX called me to see if PennyMac had returned my phone call. No, they had not. 
On XXXX/XXXX/XXXX at XXXX, XXXX XXXX and I called PennyMac and spoke with XXXX XXXX. She stated that the notes had no record of the letter dated XXXX/XXXX/XXXX, that my payments were still {$860.00}, and everything was fine. I found this unbelievable and XXXX XXXX asked that PennyMac send me written documentation verifying this. XXXX stated that she would need to call him back the next day to confirm this. He was given verbal permission by me to be called during the day due to my hours and XXXX gave him a code. 
On XXXX/XXXX/XXXX, PennyMac called me at XXXX and XXXX but left no message. I returned their phone call at XXXX but was again told they would need to refer me to another person who was away from their desk. 
On XXXX/XXXX/XXXX, I received an email at XXXX that read : Dear XXXX XXXX, We have made and INSURANCE PAYMENT on your behalf from your escrow account : To : XXXX XXXX XXXX Type : Home Insurance Premium Policy : XXXX On : XXXX/XXXX/XXXX Amount : {$1100.00} Sincerely, The XXXX Team I checked my escrow account and I had only {$77.00} left from {$1200.00} the previous day. 
On XXXX/XXXX/XXXX at XXXX, XXXX XXXX and I again called PennyMac. We got XXXX XXXX as our representative. She told me that XXXX, the team leader, XXXX XXXX ext. XXXX ) had just called me and left me a voice mail with a resolution to my problem. I checked my phone and I did not have a missed call or a voice mail. We were told that XXXX was on another call and we were put on hold. We were on hold for 1 hour 25 minutes with Charity. She would come on the line and ask if we would like to be called back or leave a voice mail. We declined due to the number of different people we had talked to previously. At one point, XXXX came on the line and told us we would have to hang up because they were receiving an unusual number of phone calls and we were tying up their line. Again, we declined to hang up. Finally, XXXX XXXX had to get off the phone to go to another job. I called XXXX at XXXX and left a voice message but never received a call back. 
On XXXX/XXXX/XXXX at XXXX, my husband called PennyMacs corporate headquarters. After being passed off to 2 different people, a 3rd person asked to speak with me. I asked her name and it was XXXX XXXX. I declined to talk to her again and XXXX was still unavailable. 
On XXXX/XXXX/XXXX at XXXX, XXXX XXXX and I called PennyMac to talk to a supervisor. We were informed there was no supervisor there that day and the team leader was away from their desk. During our 47 minutes of being on hold and talking, XXXX XXXX asked if we could just have the dates of the notices of when I had been informed of having no insurance. She gave the notice dates of XXXX/XXXX/XXXX, XXXX/XXXX/XXXX, and XXXX/XXXX/XXXX. Then on XXXX/XXXX/XXXX, she stated enforced hazard insurance had been put in place from my escrow account in the amount of {$1100.00}. 
XXXX XXXX restated the dates to me after PennyMac hung up and told me to call the Better Business Bureau, Utahs Attorney General, and the Consumer Financial Protection Bureau to get someone to intervene on my behalf. 
On XXXX/XXXX/XXXX at XXXX, I called XXXX XXXX XXXX ( XXXX ) to see if PennyMac had purchased a policy for me and to get a declaration page. I was told to call XXXX XXXX. 
On XXXX/XXXX/XXXX, I filed a complaint with the BBB. 
On XXXX/XXXX/XXXX at XXXX, I called XXXX XXXX ( XXXX ). I spoke to a representative who could only find my current policy on file. He wanted to be sure so he transferred my call to XXXX. XXXX verified my current policy but could find no record of PennyMac purchasing a policy for the year XXXX. She suggested I call my insurance agent. 
On XXXX/XXXX/XXXX at XXXX, I called XXXX at XXXX XXXX. He told me he could not find a record of a policy but that it would not show up since PennyMac would have used another insurance agency. I told him that the email said they had used the same insurance company and the same policy number as I had purchased from him on XXXX/XXXX/XXXX. 
On XXXX/XXXX/XXXX, I received an email from the BBB with a response from PennyMac that stated : Upon receipt of the BBB notification, our office is in the process of completing a thorough review of XXXX XXXX loan to ensure that her concerns are addressed. PennyMacs representative will send a written response in regards to researching his concerns as the issue is currently being researched and will be resolved. 
On XXXX/XXXX/XXXX, I rejected this response due to the fact that I had not been able to find any proof from the insurance company that PennyMac had purchased insurance for me. 
On XXXX/XXXX/XXXX, I called the Utah Attorney General office at XXXX and left a message. 
On XXXX/XXXX/XXXX at XXXX, XXXX XXXX from PennyMacs complaint office called me. We spoke for 27 minutes. He assured me that he would research the escalated issue after he returned to work on Monday, XXXX/XXXX/XXXX because he was out of the office Thursday and Friday. He stated that is was escalated because my taxes are due in XXXX and I have already made my XXXX payment leaving {$220.00} in escrow. He stated that he would call me around XXXX on Tuesday with some kind of information about my case. He gave his number XXXX XXXX XXXX ) and an email ( XXXXXXXXXXXX ). 
On XXXX/XXXX/XXXX at XXXX, I received a call and voice message from XXXX with the Attorney Generals office. I returned the call at XXXX and spoke to XXXX about what information I needed to include. 
On XXXX/XXXX/XXXX at XXXX, I received another email from the BBB with the exact same response from PennyMac as the email from XXXX/XXXX/XXXX. I rejected this response because I do not have a resolution in writing from PennyMac. 

XXXX/XXXX/XXXX I received a monthly statement dated XXXX/XXXX/XXXX due on XXXX/XXXX/XXXX which I paid on XXXX/XXXX/XXXX through my bank and PennyMac sent me an email stating the payment had been received. Today, I received another monthly statement dated XXXX/XXXX/XXXX due on XXXX/XXXX/XXXX for {$860.00}. I went to their website on loan activity and it clearly states that my next payment is due on XXXX/XXXX/XXXX for {$860.00}.

Company response to consumer: Closed with explanation