Consumer complaint received 2024-01-05
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC. (TN)

Assumed VA loan with Pennymac and closed/ signed paperwork XX/XX/XXXX. Escrow account and all fees balanced and in good standing. On XX/XX/XXXX I made my first mortgage payment to PennyMac. On XX/XX/XXXX a {$3000.00} charge for homeowners insurance was taken from my escrow account. On XX/XX/XXXX {$1900.00} was charged to escrow account for homeowners insurance. XX/XX/XXXX the assumption paperwork was processed. 



The XX/XX/XXXX charge to escrow of {$3000.00} was for the PREVIOUS homeowners policy. In the previous homeowners name with the previous homeowners insurance company. Not affiliated with me. This charge resulted in a negative balance on my escrow account. 



Once identified in late XXXX, multiple calls over the 2023 year had been placed to pennymac to try and have this resolved. I have been told numerous times they will make a ticket, get with " their manager '', look into it. Nothing has been resolved. I have been told numerous times they will call me on " XXXX '' date but they never call me and I have to call pennymac, sit through their automated system and finally get a human where I have to tell the story from the beginning over and over. 

XXXX of XXXX I was told the company they paid the {$3000.00} to was XXXX. Not my insurance company. XXXX states they returned the money to the homeowner because it was not an active policy. However, the homeowner - me - did not get the refund. How could I, THEY don't know me and I have never done business with them. It was discovered that XXXX returned the money to the policy holder - the previous home owner. 



XX/XX/XXXX I had an escrow analysis which, obviously, shows a shortage. This is going to result in a {$300.00} increase in payment starting XX/XX/XXXX to make up for it. 



I again start calling PennyMac and have stressed that this needs to be fixed quickly. I have confirmation and admittance from numerous representatives of PennyMac stating that there was an error and that they should not have paid the {$3000.00} from my escrow for a canceled policy. I have been told the same thing- they will make a ticket, they will call their manager, they will call me back. No one has called me back. No one will take responsibility and fix this issue.

I am fine with them conducting an investigation into the matter, but I have asked for a temporary credit to the escrow while they do it so that my payments aren't increased in XXXX. They say that is an option but needs " XXXX '' managers approval. It is always the same thing, and nothing gets done. I have been told that Pennymac will have to " eat the cost '' of this error by a PennyMac representative but it requires approval and sign off. Again, they will call with an update by " XXXX '' date. No, they have not contacted me about any updates. Repeated calls leads to the same thing never getting resolution. 



TLDR : PennyMac paid {$3000.00} to the previous homeowners insurance policy from MY escrow account that I assumed XX/XX/XXXX because they failed to process the assumption ( in a timely manner ) until XX/XX/XXXX. This resulted in a negative balance in my escrow. For over a year I tried to resolve the issue WITH PennyMac but they keep blowing me off. Come XX/XX/XXXX my payment goes up {$300.00} a month because they stole money from my escrow account and essentially gave it to the previous homeowner.