Consumer complaint received 2018-04-24
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (FL)

We have been having a 7 month issue with XXXX XXXX XXXX XXXX where we had damage done to our house by hurricane Matthew in XXXX. Our insurance company finally came to a settlement on XX/XX/XXXX on the damage to the home and informed us they will be sending a check for {$32000.00} for that damage. {$17000.00} of those funds were in a form a check made out to XXXX XXXX ( my wife ), XXXX XXXX XXXX XXXX, and myself. 

We called PennyMac on XX/XX/XXXX informing them they work had been completed and that we had a settlement check on the way. We requested an inspection to show the work was completed so when the check came it would simply be endorsed by the bank and the funds released to us. PennyMac declined to do send anyone to do the inspection because we had not received the check yet. 

We called in again on XX/XX/XXXX to again request that an inspection be done on the home before Hurricane Irma hit us. Once again this was denied by PennyMac stating because we had not received the check to date we would not be able to get an inspector out to the home. We stressed the severe importance of getting an inspector to the home since we just got done repairing the house and we were, justifiably, concerned that hurricane Irma would damage the work we had completed to date. 

PennyMac refused to send anyone to the home to do any inspections. We received severe damage from Hurricane Irma. Broken windows caused rainwater intrusion throughout the entire home and damaged all the work we had done to date on the home. After the hurricane we received the {$17000.00} check from Pennymac. We contacted PennyMac to confirm that they would be endorsing the check and returning it to us. We were promised by 3 different representatives that the check would be endorsed and returned to us for deposit. We were instructed to sign the check and send it to them with an overnight return envelope enclosed. This would mean for a fast turn around of the funds. 

We did as instructed and Pennymac deposited the funds into an escrow account and has refused to release any funds until the repairs to the house were completed or at least 50 % complete. The damage due to Hurricane Matthew was contained to roughly {$78000.00} in damages that we had already repaired. The damage due to Hurricane Irma is extimated to be {$370000.00} in damages by the time everything is completed. The amount of damage is far higher then what we had already repaired and paid for.

PennyMac did disperse a check in the amount of {$3900.00} on XX/XX/XXXX for a replacement refrigerator and a wheelchair ramp for my son. It took 3 constant months of brow beating and repeated phone calls to get them to release the funds. We went 3 months without a proper working refrigerator. We had to constantly fight PennyMac to disperse funds to make repairs in the time when we were at our most vulnerable, recovering from Hurricane Irma. 

On XX/XX/XXXX we had work completed on the bathroom that was damaged in both storms. We submitted the paperwork showing that the work was complete and paid for in full on XX/XX/XXXX. We did not hear anything back from Pennymac for the  disbursement amount of {$1900.00}. We called in on XX/XX/XXXX and spoke with the supervisor XXXX. We resubmitted the picture of the completed work and the paid in full invoice. We were instructed by XXXX he would be putting into have the amount dispersed and to call back Tuesday XX/XX/XXXX. I called in today and to inquire about the check and was informed instead of sending out a check for the full {$1900.00} that Pennymac would be dispersing a check for only {$380.00}. Per the representative on the phone XXXX that was the most they are willing to disperse due to the 25 % initial prefunding they do on a claim. This is not for pre-funding but reimbursing for work that has been complete. 

Again we are being forced to wait for money that we have already paid to have the house repaired. Also we have damage done to Hurricane Irma that is not being repaired by our current insurance company XXXX XXXX XXXX XXXX. Since XXXX XXXX XXXX has decided to sue us instead of paying for damages or completing work due to hurricane Irma that leaves us only with the funds available through the money held in escrow by PennyMac. Since they are not giving us the funds PennyMac is now causing continued damage to our home.