Consumer complaint received 2023-05-06
Company: PENNYMAC LOAN SERVICES, LLC.
State: WA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My wife and I contacted our lender, PennyMac, to request a recast of our existing loan by submitting an additional principal payment. The lender told us we could recast the loan by sending additional funds and paying {$250.00} for processing. After we gave the {$250.00} processing fee via echeck, and wired the funds of {$110000.00}, the lender emailed us a recast agreement to sign. After reading that the loan would be amortized differently than we expected, we told PennyMac we did not want to proceed and requested a refund of the extra principal payment. We are frustrated and concerned that PennyMac still has not returned our principal payment 12 business days after requesting its return. To this day PennyMac continues to give us vague and indefinite answers as to what day it will be sent to us, and as to whether they will honor our request to have it wired back or overnighted, which we have offered to pay for if that helps to expedite its return to us. 

The lender has told us on three occasions the money would be sent. Each time after we didn't receive it, PennyMac told us it was actually still being held for processing. Below is the timeline of events that occurred told from my wife 's perspective. 

XX/XX/XXXX. Wired $ XXXX to PennyMac ( PM ) along with {$250.00} recast fee. PM sent an agreement for our review. We reviewed the agreement but after considering it we decided not to proceed with the recast. We did not sign the recast agreement. 
XX/XX/XXXX. Contacted PM and requested recast be cancelled and $ XXXX be refunded ; was told I needed to submit a bank statement showing the $ XXXX withdrawal before my request could be further processed. 
XX/XX/XXXX. Received phone call from PM ; when called back was told again that I needed to submit a bank statement which showed the $ XXXX withdrawal. 
XX/XX/XXXX. Received a request from PM for a callback at my earliest convenience. When I returned the call I asked to reconsider my cancellation request. 
XX/XX/XXXX. I submitted the bank statement to PM showing the $ XXXX withdrawal, and I also submitted a copy of the wire receipt for the $ XXXX. 
XX/XX/XXXX. PM confirmed receipt of my bank statement. Asked for updated status; was told my request would be processed in 5-10 business days. I asked if that could be expedited and I was told that it would. 
XX/XX/XXXX. Contacted PM and asked for an updated status. Was told it was on hold waiting for Investor Approval. Later my husband also contacted PM and was told the funds would be sent to our account by the end of the business day. 
XX/XX/XXXX. Contacted PM and asked for an updated status. Was told they were still waiting for approval from their investor XXXX XXXX. Later my husband also contacted PM and was told the same thing. 
M XXXX. my husband contacted XXXX and was told the investor got approval and would be sending a check to our home address in a couple of days. 
XXXX. My husband called PM to ask the status. He was told $ XXXX would be wired out by the end of the day. At XXXX that day I did not see the funds deposited into our account. I also received a call that day from PM instructing me to call if I still had any questions. 
XXXX. Contacted PM and let them know I was returning their call. Was told the message left was about letting me know that the funds would be returned via wire. 
XXXX. Called our bank XXXX. XXXX said they did not show any incoming wire and requested XXXX conduct an investigation on their end. XXXX said that if PM provided an XXXX number that XXXX could do a search on their end to see where the funds ended up. I then contacted PM with this information. PM told me that my request was in Payment Clearing Status and suggested that because I had sent the funds via wire, that PM needed extra time to clear them. 
XX/XX/XXXX. My husband called PM. XXXX was told it would be wired within XXXX hours.

Company response to consumer: Closed with non-monetary relief