Consumer complaint received 2018-03-01
Company: PENNYMAC LOAN SERVICES, LLC.
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I am looking for two remedies due to the Statement of Denial, Termination, or Change by PennyMac Loan Services for an Unacceptable property causing me to re-start the mortgage process and close with with another company, XXXX. 
1. A refund of {$1800.00} for the difference in Loan Origination Fees ( {$1100.00} ) and Lender Credits ( {$670.00} ) that I paid to XXXX versus PennyMac. 
2. A revised mortgage commitment with a reduction of .25 % to the Interest Rate. 

I began the mortgage conversation with Loan Officer XXXX ( XXXX ) XXXX from PennyMac on XX/XX/2017 culminating in a Loan Estimate of 3.875 % with {$270.00} in Origination Fees and {$970.00} in Lender Credits as of XX/XX/2017 ( see attachment 1 ). 

On XX/XX/2017, my loan processor from PennyMac, XXXX XXXX notified me that there was a concern in PennyMac that my property was a condo-tel and that PennyMac may have a problem providing a mortgage. I then had conversations with her manager, XXXX XXXX, and then with XXXX who told me that the PennyMac Loan Committee would not hold a mortgage for my property. My real estate agent ( who used to work for the condo ) also spoke with XXXX XXXX to explain that they were incorrect in their assessment the XXXX XXXX XXXX XXXX was a condo-tel. 
1. The onsite rental desk on property is a different company that rents some condos on property, but it is not required to rent your condo ( some people live there or use it as a second home ) nor do you have to use the onsite company XXXX XXXX as the rental company if you choose to rent your condo. 
2. There are no short term ( nightly rentals ) available as the minimum rental is weekly. 
3. There are no onsite maid services providing daily service nor a concierge desk onsite. Cleaning is done by the resident or with maid services that are paid by the owner or guest when they vacate the property with a maid that is found on the internet or phone book. 

In spite of my input and the input of my real estate agent, I was given a verbal denial then and received a written denial dated XX/XX/2017 ( see attachment 2 ). 

I then had to begin the entire mortgage process with another company, XXXX, who had a higher fees as well as a higher interest rate of 4.125 %. I closed on this mortgage on XX/XX/2017 ( see attachment 3 ). 




I received a letter from PennyMac Loan Services dated XX/XX/2017 notifying me that my mortgage loan had been sold to PennyMac ( see attachment 4 ). 

I find this absolutely ridiculous and unethical with the mortgage sale occurring prior to me making my first mortgage payment. It may also be a violation of the Florida Deceptive and Unfair Trade Practices Act. I have not contacted an attorney at this point, however, I will do so if we can not resolve this issue. 

I am requesting a refund of {$1800.00} for the difference in the Loan Origination Fees and Lender Credits along with a revised mortgage commitment with a reduction of the Interest Rate to 3.875 % to honor the loan estimates provided to me by PennyMac on XX/XX/2017. 

I have made my XXXX, XXXX, and XXXX mortgage payment to PennyMac as I want to maintain my credit rating. I look forward to a response from you and hope you can help me resolve this quickly.

Company response to consumer: Closed with explanation