Consumer complaint received 2018-01-23
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (IA)

This is an ongoing issue. I have spoke with three different representatives on three different occasions to-date. My last call lasted for nearly 1 hour. 

On XX/XX/XXXX, I contacted my Pennymac to remove my escrow from my current mortgage. To the best of my recollection, they discussed a 21-day process time. Due to recent tax code changes, I informed them that I wanted to pay my property taxes before the end of the year and asked if they could expedite the process time. The representative I spoke with ( I believe XXXX ) visited with the Pennymac escrow department and I understood from the representative they were going to expedite it. I informed the representative that I would go ahead and pay my property taxes and insurance and did make payment within a 24 hour period. 

Several weeks later, I observed on my bank statement that the normal mortgage deduction from my bank had increased by {$61.00}. I contacted Pennymac and was informed that it was due to an increase in my escrow ( i.e. increase in property taxes and insurance ). I informed the rep that I understood that my escrow had been or was being removed based on my XX/XX/XXXX call. He informed me that I was not eligible because I had not been with Pennymac for a 24 month period and that this was a XXXX requirement. I asked for a follow-up and more specific information as I needed to end the call because I was at work. I never received a follow-up communication. 

I called back at a later date and spoke with someone from Pennymac customer service. I received the same information regarding 24 month XXXX requirement. I could not get any specific on the regulation and when I indicated that I did n't sign anything during closing that would prevent them form removing escrow, they informed me that by law it did n't have to be disclosed, but generally would at closing. I made a clear request that if they we going to deny me the ability to remove escrow, they needed to provide a written response and a reason for denial. I did inform them that during my research ( internet search ) while on hold, I had not found any requirement or reason they could not remove my escrow account. Furthermore, after having reviewed all signed documentation, I could not find anything that would limit me. I also have a good credit history and record of making on time payments. 

I visited directly with XXXX and was informed the only reasons for denial were : ( 1 ) defaulted on loan, ( 2 ) have a blemished history, or ( 3 ) limited cash reserve. None of these reasons would apply to me. I even reviewed my loan documentation and it specifically states the lender may waive certain obligations such as escrow. At this point, I feel as if Pennymac is using a requirement of XXXX that does n't exist or at least shifts there own accountability in not providing me information to a well-informed customer ( it 's not their requirement, it is a requirement outside of their organization ). At this point, I find there 's little I can do to find resolve directly with Pennymac. Of interest to me is the longer it goes on the more costs it has to me in terms of interest accrued. For instance, the past payment should have been applied to principle instead of sitting in an escrow that is no longer needed. Again, my request was on XX/XX/XXXX.