Consumer complaint received 2015-06-23
Company: PENNYMAC LOAN SERVICES, LLC.
State: CA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
To Consumer Financial Protection BureauXXXX Advised by mail that XXXX XXXX which this loan was under a modification request, was sold to Penny Mac. 
XXXX Loan boarded with Penny Mac , advised this loan was never reaffirmed in a Chapter XXXX filing in XX/XX/XXXX and the debt can not be collected or report as a debt being collected on my credit reports which they have ignored. Advised XXXX that I was working with XXXX for a principal reduction awaiting for approval. XXXX advised that XXXX XXXX was the agent reviewing my file for a mod. 
XX/XX/XXXX Rec 'd call from XXXX XXXX, at Penny Mac and advised she is waiting for the approval from XXXX. 
XX/XX/XXXX Spoke to XXXX XXXX at Penny Mac, still waiting for approval for principal reduction of {$100000.00} to be put against the arrearages and difference to the balance. 
XX/XX/XXXX Rec 'd the Notice of Default filed on my property. 
XX/XX/XXXX Called Penny Mac to inquire why the NOD was filed while the loan was being reviewed for a modification. I spoke to XXXX and she advised me that when the loan is in a modification stage the NOD is filed. I told her that is duel processing. 
XXXX Received notification from Keep Your Home California ( XXXX ) is pleased to inform you that notice of your conditionally-eligible application for the Principal Reduction Program ( PRP ) was submitted to your loan servicer Penny Mac , XXXX has determined that program assistance is only available if it is combined with a loan modification, provided by your servicer that helps you achieve an affordable payment that meets our Program guidelines. XXXX will maintain your conditionally-eligible status until Monday, XX/XX/XXXX. It is important that you contact your servicer immediately and request a loan modification. Applications for benefit assistance that require a servicer loan modification must receive a final determination of benefits from XXXX by above date. Act now to protect your conditionally-eligible application status with XXXX. 
XX/XX/XXXX, Called Penny Mac, to advise XXXX XXXX that we were approved for the {$100000.00} principal reduction, part of it is to bring the loan current. I requested Penny Mac to commence with the medication process and to send a mod pkg. She advised me to call the financials in to Penny Mac first then a pkg would be mailed out. 
XX/XX/XXXX Called Penny Mac spoke to XXXX gave him my financial information in order to get a mod pkg sent out to me, he said it would take about 10 days before I see a pkg. 
XX/XX/XXXX Rec 'd the mod pkgXX/XX/XXXX Returned the modification pkg back to Penny MacXX/XX/XXXX, I was contacted by XXXX XXXX he is now handling my loan, advised him of we are working with XXXX and he needs to be in contact with them regarding the paydown on the balance and also advised him I am requesting reduction of the debt based on the value of my home which is a XXXX bedroom home. He advised he would order a BPO to see what the value is for a XXXX bedroom. He understood I was looking for reduction of the debt based on the current valueXX/XX/XXXX Faxed employment letter for XXXX XXXX to XXXX XXXX Called XXXX 3 times today to inquire if he received the faxXX/XX/XXXX Faxed my retirement benefits to XXXXXX/XX/XXXX Called XXXX XXXX to inquire the status of the mod and also remind him we have a dead line with XXXX of XX/XX/XXXX or I will no longer be eligible for the approved principal reduction. 
XX/XX/XXXX Called XXXX to get an update on the mod he advised submitted for review. 
XX/XX/XXXX Rec 'd in the mail today a modification trial for 3 months, pmts calculated at {$2100.00} which includes impounds @ 3 %. I called him to advise this was unacceptable, we can not make those kinds of payments, balance was not lowered, he did not contact XXXX for the funds to reduce the balance. I asked him if he was in contact with KYHC he said no. He had third party authorization

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation