Consumer complaint received 2022-04-24
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (TX)

For over a year now, I have been receiving harassing letters from PennyMac regarding my Homeowners Insurance. 

1. On XX/XX/XXXX, I received a letter dated XX/XX/XXXX ( see attached ) regarding not having a record on my Homeowners ( Hazard ) Insurance. I immediately sent them email the same day and attached XXXX XXXX XXXX XXXX XXXX Policy # : XXXX covering the period XX/XX/XXXX to XX/XX/XXXX ( see attached ). 

2. On XX/XX/XXXX, I received a letter dated XX/XX/XXXX ( see attached ) confirming that I have provided " evidence of hazard insurance coverage '' 3. To my utter surprise and shock, I received a letter dated XX/XX/XXXX on XX/XX/XXXX claiming that their " records still show that there was a lapse in coverage from XX/XX/XXXX to XX/XX/XXXX '', and that " An insurance charge of {$4200.00} may be charged to [ my ] account for the time period that the coverage was in force ''.

3. Their own letter of XX/XX/XXXX attached was clearly confirmed evidence of hazard insurance coverage. I therefore, attached my XXXX Insurance Policy # : XXXX for the XX/XX/XXXX to XX/XX/XXXX with XXXX XXXX  as lender to show PennyMac it is sad my original lenders ( XXXX XXXX XXXX  XXXX dba theLender ) transferred my payments to them never complained about my XXXX XXXX policy. 

4. Following a review of my protest PennyMac trying to destroy me came back with the following in their letter of XX/XX/XXXX : At the time your loan was transferred to Pennymac, the policy was boarded incorrectly as a homeowners policy and that ... due to this oversight, you will not be required to provide evidence of homeowners insurance from XX/XX/XXXX through XX/XX/XXXX, nor will your account be charged for this period. However, you will need to provide evidence of homeowners insurance from XX/XX/XXXX through XX/XX/XXXX ''. 

5. As a consumer who has regularly paid my Homeowners Insurance as I understand since acquiring my house in XXXX without any problems and having been with other Lenders since XXXX with XXXX XXXX XXXX policy # : XXXX XXXX coverage, I found PennyMac to be unfair in dealing with me by claiming that they found my coverage inadequate even after they made a mistake At the time [ my ] your loan was transferred to Pennymac, the policy was boarded incorrectly as a homeowners policy ''.

6. How does PennyMac expect me as a consumer to know the difference when all I have known over the years is that I was buying Homeowners Insurance and none of my previous Lenders have complained?

7. And how fair is it for them to try to harass me and collect monies retroactively for a policy covering XX/XX/XXXX through XX/XX/XXXX when they would not have paid any claims to make up for the XXXX XXXX they now consider inadequate? 

8. In fact, my current homeowners insurance with XXXX XXXX of {$2000.00} covering XX/XX/XXXX through XX/XX/XXXX which PennyMac finds acceptable is only {$260.00} higher than the XX/XX/XXXX through XX/XX/XXXX policy of {$1800.00} with XXXX XXXX XXXX XXXX which they find unacceptable. The higher XXXX XXXX policy can easily be attributed to the fact that homeowners insurance coverage in Texas has gone up due to the recent damage of some homes during the XXXX cold weather. 

It is clear from above that PennyMac is trying to take advantage of me and cheat me by retroactively trying to collect over {$4000.00} over the period XX/XX/XXXX through XX/XX/XXXX from me and the intervention of the CFPB will be critical to stop this injustice.