Consumer complaint received 2016-05-12
Product: Mortgage — FHA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: PENNYMAC LOAN SERVICES, LLC. (GA)

PennyMac Loan Servicing continues to violate my rights under the Fair Credit Reporting Act from XXXX XXXX, XXXX to date. I 've had several phone conversations with several members and departments, informing them that they were not operating under the Laws of Chapter XXXX. PennyMac initially refused to modify my loan ( please see previous complaint filed with your Bureau in XXXX ) after 6 attempts and filed foreclosure. In turn, I filed Chapter XXXX. PennyMac entered a claim for {$14000.00} into the Trustee court. I was mandated to make payments to the Trustee in the amount of {$460.00} per month, in addition, pay PennyMac my regular mortgage payment amount of {$1400.00} per month commencing XXXX XXXX, XXXX, which I complied. The Trustee advised me that the payments made to PennyMac from the Trustee will be applied to the arrearages ( Claim amount entered into Bankruptcy Court ) and that my regular monthly payments will be applied to XXXX XXXX, XXXX, onward. I learned through my credit reports that PennyMac was not applying my payments as mandated by the Court and " applied as they see fit '' per several employees. I informed them that under the Law, if payments are prescribed, you must apply accordingly. To this day, they have not corrected my account and continues to record that I have not made payments to them since XXXX. I made consecutive payments to PennyMac without being late from XXXX XXXX, XXXX through XXXX XXXX, until the courts raised my payment again and my attorney allowed this even when I communicated that I could not pay any more than the nearly {$1900.00} that I was paying before I took care of any of my bills of which {$1500.00} more was remaining. This has been the worst nightmare and train wreck that I 've ever experienced and the government did n't protect me. All my payments made to the Trustee went to my attorney XXXX XXXX {$400.00} ) per month. Then as soon as he was paid the {$3000.00} in full, I started receiving letters from the Trustee to pay more - that which my attorney knew I could not pay. Ultimately, my case was dismissed in XXXX XXXX. Only since I file the complaint with you against PennyMac, they agreed to a modification. I since made # 3 of 3 Trial Payments as of XXXX XXXX, XXXX and await their verdict. I since asked for a correction to my credit report today and XXXX insist that I need to speak with the Trustee or my lawyer because they have the right to apply my payments as they see fit. Again, the last 3 payments made in XXXX, XXXX and XX/XX/XXXX were applied to a month in XXXX ; however, all of XXXX payments were made, again from XXXX XXXX, XXXX through XXXX XXXX, XXXX. I have since been turned down by a mortgage lender for modification due to this negative reporting. He told me that they could underwrite this loan with no problem, regardless of bankruptcy, if PennyMac showed the most recent 16 payments made, and not only do they not reflect such, but also refuse to correct their reports with all XXXX Bureaus. I think this is malice against homeowners to make others turn you down and make you have to deal strictly with them at their mercy. These people are horrible and I pray to God that something positive happens in all of this that I do n't have to do business with them and continue to be bullied and disrespected by they employees.