Consumer complaint received 2017-09-05
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (TX)

To : PennyMac From : XXXX XXXX and XXXX XXXX XXXX Loan Number : XXXX Property Address : XXXX XXXX XXXX XXXX XXXX, TX XXXX Re : Erroneous Charges to our account made by PennyMac for Flood Insurance and grossly ineffective handling of matters concerning our mortgage account This is a qualified written request under Section 6 of the Real Estate Settlement Procedures Act ( RESPA ).
I am writing because PennyMac has insisted our property is in a flood zone when in fact it is not. Subsequently PennyMac deducted {$2200.00} from our escrow account in XX/XX/XXXX and are attempting to charge that same amount in XX/XX/XXXX for flood insurance. We have provided ample proof and documentation to show our property IS NOT in a flood zone. We have provided to PennyMac per their requests on 3 separate occasions with the following documentation : LOMA ( Letter of Map Revision Based on Fill Determination Document Removal ) dated XX/XX/XXXX from FEMA, Certified copies of Engineering maps and zoning for our area dated XX/XX/XXXX from XXXX, XXXX XXXX XXXX  XXXX for XXXX at XXXX XXXX XXXX Layout Map, and a zoning map from XXXX XXXX , XXXX for XXXX XXXX XXXX at XXXX. 

All of these documents completely and clearly show our property is in XXXX XXXX XXXX XXXX of XXXX at XXXX which was removed from the flood zone per FEMA in XX/XX/XXXX per LOMA case # XXXX FEMA. This property was initially shown in a flood zone. However, it never should have been. FEMA acknowledged and corrected their mistake. The property was never in a flood zone but due to an error, FEMA included some of the properties from our neighborhood prior to XX/XX/XXXX. They have since removed our property and others and corrected the mistake per XXXX on XX/XX/XXXX ( before we even purchased the property. ) We have spoken to FEMA representatives on several separate phone calls over the past several months ( since XX/XX/XXXX ) and we have been assured by them that our property is not in a flood zone and thus we are not required by federal law to carry flood insurance. Per FEMA flood insurance is completely the homeowners prerogative in our case. And yet, PennyMac insist on charging us an exorbitant amount for flood insurance w/out our consent. During the past several months I have contacted several entities to provide me w/ documentation and information. I have spoken to our HOA President several times and he also assures me we are not in a flood zone. He assisted me in obtaining the necessary documentation to show that fact which I forwarded to you. I spoke to our Homeowners Insurance representative and he also assured me that he had reviewed the documentation and he could clearly see we were not in a flood zone per FEMA. He was completely unsure as to why the third party insurance company on behalf of PennyMac could not easily see the same thing he sees.
I have repeatedly, since XX/XX/XXXX to date, cooperated w/ PennyMac fully. I have provided you w/ all requested documentation more than once. I have spent countless hours on the phone w/ PennyMac regarding this problem as well as countless time spent researching, obtaining documentations, and waiting for your representatives to call back as they have indicated. I have a complete and very thick file of all of the above and have detailed accounts of each interaction I have had w/ your representatives regarding this matter. I have talked to many different PennyMac representatives on numerous occasions and each of them have promised me they would get to the bottom of this and correct the mistake.That has never happened. They just keep reopening the file and requesting new review w/ the same outcome. Or they do nothing and fail to personally inform me that the matter has not been resolved. Furthermore, I have suffered extreme XXXX and XXXX  XXXX because of PennyMac not properly resolving this matter in a reasonable time frame. As consumers, we have been in essence harassed w/ this problem for almost a full year now. We have been cooperative and patient beyond a normal limit. 

We demand that PennyMac correct their error. Return the full amount of {$2200.00} to our escrow account for the XX/XX/XXXX flood insurance they charged to our account as well as any charges they may have made for XX/XX/XXXX or to date. And that they discontinue charging our account for any future flood insurance. And provide us w/ an updated Annual Escrow Account Disclosure Statement for XX/XX/XXXX showing these corrections immediately. PLEASE do not contact us to explain what has transpired from your end over the past several months and/or what you intend to do about this. We have been told the same thing over and over again and given the same explanation over and over again w/ no resolution at all. Contact us only as required by law ( RESPA ) and we will only discuss results that have complied w/ our demands ( please see above ). Thank you.
I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days. This is my initial step in filing a formal complaint w/ HUD and the Consumer Financial Protection Bureau . Also, we are prepared to move forward w/ legal action against PennyMac if this matter is not addressed by you and resolved in the above official and mandated timeframe. 

Sincerely, XXXX XXXX XXXX ( and XXXX XXXX XXXX ) - Homeowners Phone : XXXX Address : XXXX XXXX XXXX XXXX XXXX, TX XXXX