Consumer complaint received 2023-06-29
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (FL)

PennyMac never paid my flood insurance premium to XXXX XXXX XXXX XXXX that was due XX/XX/XXXX therefore, my policy was never renewed. PennyMac has taken {$3300.00} out of my escrow account to pay for lender placed flood insurance because they never made payment to the flood insurance company. Pennymac was the responsible party and they were supposed to make payment of {$800.00} to the flood insurance company on my behalf. I contacted PennyMac on at least 2 different occasions in the months of XXXX and/or XX/XX/XXXX in regards to me receiving a renewal letter and the payment not being made to XXXX XXXX XXXX XXXX . The customer service reps I spoke with told me the funds will be automatically disbursed as well as they have up to 30 days after the policy renewal date to make payment. Also, not once during any of the phone calls did anyone from PennyMac advise me they didn't have a renewal invoice and that was needed for them to make payment. Not once during any of the calls did PennyMac employee 's advise me to send in or upload my renewal notice so they'll be able to make payment. I checked my online escrow account and Pennymac had the correct insurance companies & addresses listed along with the premiums and renewal dates therefore, I had no reason to believe these individuals were providing me incomplete or wrong information when I called in to speak about my insurance renewal payments. Now, for the past 2 days I've spent hours on the phone with PennyMac trying to get this straightened out and once again I've been provided with wrong information. XXXX from the insurance tracking department told me I can have XXXX XXXX back date my policy to XX/XX/XXXX so I can receive a full refund for the lender placed insurance once my new policy goes into effect which I come to find out is false and illegal. He also advised me I would have to pay the insurance premium myself and not out of escrow which I also came to find out was incorrect information. I called back and spoke with 2 other reps XXXX and XXXX and they told me something totally different from what XXXX told me. They both tried calling XXXX to get my policy reinstated and make payment over the phone from my escrow account which XXXX never once said it was an option or tried to do. XXXX also advised me that I will not be refunded back the full amount and will only be refunded from the day my new flood policy from XXXX goes into effect which of course is different information than what the other rep XXXX stated. This just goes to show you that none of the PennyMac employees are on the same page as well as they give out wrong information or lack thereof and I'm getting penalized for it. I shouldn't have to pay for this lender placed insurance because of an incompetent company. What I've been charged from XX/XX/XXXX up until whenever my new policy goes into effect ( pending XX/XX/XXXX ) should be waived because PennyMac dropped the ball. I did my due diligence by calling in to verify the process and asking questions to try to make sure everything was done correctly and payment was going to be made to avoid my flood insurance being canceled but if PennyMac employees are giving me incomplete and wrong information how would I know any different because this is my 1st insurance renewal year with them.