Consumer complaint received 2018-09-27
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: PENNYMAC LOAN SERVICES, LLC. (AR)

We are Hurricane Harvey Survivors. We had a conventional loan with PMI insurance in the original amount of {$160000.00}. Penny Mac contacted us in XX/XX/XXXX after Hurricane Harvey and asked us if we would like to get the repairs done to the home THEY WERE offering a disaster forbearance plan that would simply put these payments t0 the end of the loan and extend the term. Since we were standing in water, flooring that needed to be ripped out, ceilings replaced, we said sure that would be really helpful. We entered their " Disaster Forbearance plan '' as offered.

Then they held the insurance proceeds from our home over 45 days, meanwhile we owed contractors so we were forced to withdraw emergency money from our 401K to pay people to avoid liens. After all the repairs were complete, and the forbearance was supposed to end in XXXX, we made a payment, at the end of XXXX for XXXX, then we made another payment in the middle of XXXX for XXXX. We received a late fee for both of these??? We called and they told us that they did not have the forms prepared for the modification and the " trial '' payments would start in XXXX. Those two payments should have then credited to the past due balance in whole. 

Then the day of reckoning comes, we receive the modification papers, everything seemed to be in order, we were modifying the current balance of the mortgage of {$160000.00} however, they are saying we have an ESCROW shortage of {$4900.00}. What they did not know is we had sold the property and had also ordered a pay-off on the loan. In fact when we called for it the man said " well you know if this loan doesn't close you will be in default and all these sums due ''. I said " Yes sir, I am aware, this loan is scheduled to pay off tomorrow. '' The Pay Off was very slow to come, the title company finally sent out the Final CD and it showed the payoff on the original loan was now {$170000.00}, and our portion of the county taxes for the year was XXXX. 

So now we owe over 2,000 then WE EVER BORROWED, and NONE of our payments have reduced the principal of this loan??? We made payments totaling {$23000.00} plus the payoff of XXXX totaling XXXX, and this loan originated in XX/XX/XXXX. That is the first problem on this loan, on XX/XX/XXXX there is a credit paid on account at closing that should have been applied to payments and interest for XXXX, they stole that money. 

And the problem continues throughout this loan, every payment mailed they do not credit for weeks. They credit the payments WHEN they can charge late fees. 

Then they charged property inspection fees, in XX/XX/XXXX they charged us three times, the property had been repaired for months and furthermore PennyMac nor any representative of Penny Mac ever inspected this property.Then in XX/XX/XXXX they charge a " Property Preservation Fee '', at this time the property was under contract, we had made all of the trial payments plus two and were waiting on modification documents, we had been waiting since XXXX, XXXX. 

Now for the escrow account, we had a balance of XXXX in XXXX, XXXX when we closed they made us pay an additional {$300000.00}, our insurance had already been and we only owed XXXX in county taxes. Some ten days later they sent a check for XXXX, the amount of the monthly PMI payment and said the escrow account is settled in full. 

So in closing, we never paid the 4.5 interest rate as shown on THE TRUTH IN LENDING DOCUMENT, if you add up what has happened here my guess is that its close to 30 percent, although I have not put iron an amortization schedule yet. Oh and as a kicker they charged ANOTHER property inspection fee in XXXX, after they were paid off ... ..