Consumer complaint received 2016-06-21
Company: PENNYMAC LOAN SERVICES, LLC.
State: FL
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
My family has been the subject of ongoing abuse and fraudulent misconduct by PennyMac, our mortgage service provider. PennyMac has fraudulently used deception and misleading communication to induce us to action with intent to bait and switch. Strong evidence indicates that their motive was to perpetuate false hope of home retention, so we would maintain the house while they waited for the market to recover. The evidence supports that they knew that us working out a plan to keep our home was not going to happen. They offered phony alternatives and deception to induce us to go to the expense of time and money to cooperate with a loan modification process. We suspect that they must receive compensation for each loan modification that is applied for, because we were receiving multiple appeals from different representatives even while they were verbally telling us that our account was not currently eligible for a loan modification. After it became apparent that a loan modification option was not ever going to be considered, they pitched the short sale option with a lump sum payment incentive, the Deed in Lieu option, and dangled offers of cash for keys incentives that they really had no good faith intent to follow through with. At each point, they pulled the rug out from under each deal and were content to leave us out on the street with no compensation for their inducements. Had the judge on the case not granted an extension to give time for them to follow through with their inducements, we would have been stranded. After inducing us to go to work for them to do the market research, make repairs, show the house to prospective buyers, and even secured a qualified buyer for the price determined by PennyMac, they arbitrarily declined the short sale offer that met their original terms. They claimed the house was now worth {$240000.00} more than it was two months earlier ( a XXXX % increase ). 

Long story short, since 2012, PennyMac has been fraudulently imposing on us a false sense of hope, in order to induce us to stay in the home, maintain the home, and preserve the value of the home until such convenient time as the market recovered and they were ready to cash in on their manipulative scheme. To add insult to injury, they conned us with bait and switch tactics to work for them with verbal inducements without any intention of delivering on their end of the bargain. I believe that the fraudulent, dishonest behavior of this company is typical of the corrupt past that these PennyMac executives spawned from. My recent research uncovered that PennyMac Loan services was started by XXXX in command XXXX executive who jumped ship with a half dozen other former XXXX execs in order to start PennyMac. They rode their fortunes to the top of the bubble with XXXX, and now with PennyMac, started buying up distressed loans to cash in on their insider information. These people are white collar criminals and the last thing these bandits care about is keeping people in their homes. Their sole interest was to make one more buck on the mess they created, while they pretended to sweep up the mess they made. Is there anyone in any position of authority willing to hold these people accountable for their actions? 

Documentation and facts that corroborate are attached or available upon request. PennyMac 's behavior involves fraudulent inducement that has imposed financial harm upon my family. The cost of holding on to false hope for 7 years is significant. Lost time is no longer available and credit repair has been postponed years down the road for us. This companies ' reckless, deceptive practices are unconscionable and they ought to be brought to justice and held accountable for their unfair dealings in bad faith.

Company response to consumer: Closed with explanation