Consumer complaint received 2024-03-12
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC. (UT)

I would like first to bring a few more items to light that have cost me time, aggravation, and duress that I have now confirmed many PennyMac customers that have experienced these same items. Two of which I work directly with.

In the initial loan approval of the assumption of the VA loan I took over through PennyMac, they were prompt and responsive in the initial approval and investigation of my ability to be approved for the loan. The first person I talked to was incredibly thorough and helpful. I have all names, emails and titles of the people I've dealt with to date aside from the amazing customers service reps that always seem genuine and helpful. The loan processor, managers involved, and closing teams were beyond incompetent and overworked and stressed and unable to get together in their facts and steps of the process and what to expect. In fact, one of them suggested I complain and file a complaint before closing. All things I've come far to accustomed to dealing with specifically with PennyMac.

Things took a turn when I have on email record, and phone records that PM records on every interaction as well as the notes ( which will come up many times ) that money for closing was allowed that I specifically asked multiple people, multiple times if they were sure that it would be allowed. In which NOBODY ever said no until the last minute in the last hour of closing, that then resulted in me losing over 9k in capital gains on money I had to pull out of accounts that they said would work. Within hours of this happening, I drained other accounts to make the closing go smoothly. I asked repeatedly how I could help make the close smoother and easier. Which one item my processor suggested was to pre-pay my hazard insurance for the year and have the policy updated nearly a month before the closing, which I did. This comes into play now, where I'm on my 4th privacy violation where my info was given to the previous owner. Then also during closing was asked if I could get sensitive information from the previous owner, which they sent me, which I sent PM. ( including but not limited to social security # 's, their VA status and information, and signatures with current address and information ) in hopes of closing quickly they thought it was odd to send to me, but with the insane delay in communication and their need to sell quickly they felt that it was worth it. Fast forward to now nearly two and half months after closing, the mishaps and follies are continuing.

During closing they had me pay the deficiencies of escrow balance for the previous owners, so it didn't raise my payment ( I have been told this is a violation ). To which about a month after closing was cut and sent with my name but the previous owners address from PennyMac their previous mortgage company to their new home in MI. Which I live in Utah and bought the home in Utah. When I caught the mistake I called PennyMac to be told they were sorry and would fix the error. Shortly after I was notified that two statements showed up there as well ( additional violations ). I called again and asked them to review my file to avoid any other mistakes. They assured me they did a review and had fixed any potential problems. They stopped payment on the escrow check and reissued it to me. Which I received almost a month later. XX/XX/XXXX I noticed another charge to the escrow and a check cut to XXXX XXXX for the very same hazard insurance they suggested I pay in full, in the amount of {$4400.00} to which I immediately called and tried to find out what was going on. My insurance which I had to provide many times, confirm with an agent and have my agent list them as the beneficiary, was and still is XXXX XXXX. When I called, I got another nice agent who could not believe it had happened and not only stated on a recorded line, but to me the customer that they have seen this quite a few times with the assumptions department. ( WOW ) I was then transferred to the Insurance department as they were unable to fix the issue. Which I do not think was intentional, but I've been hung up on no less that 5 times, from their call center which puts you back in que and requires that you explain the situation and allow them to read the notes every time. ( WHICH I HAVE A LOT ). After asking for a supervisor on numerous occasions I finally did get one. Which apologized for the trouble, couldn't believe they had messed up so many times, but had as well had a lot of experience in dealing with this specific issue on assumptions. Once again on a recorded line at PM. ( Violation ) I was told that I should reach out to the previous owner ( violation ) and try and get the money back from him?? I could not believe what they were asking me to do?? I expressed this adamantly to the rep and the supervisor, they said it was out of their hands and that they would have the assumptions department reach out to me .... weeks later ... no call ... no resolution ... .. no follow up. I did get the previous owner on the phone he seemed to be willing to help. However of course has not received the check a month later either. Seems strange but why am I involving him in this debauchery? My escrow will now be in a deficiency if this is not resolved. I called in again today and a very nice woman named XXXX said she would open an " insurance investigation '' ... why now, why a month later is that an option rather than violating customer privacy act to have me work for them for their mistake? 

Not to mention the blatant discrimination I've experienced throughout the assumptions department that I was told by a manager that I should be happy if not grateful for the benefits of the assumption. Also told if " I can't afford to pull more money out '' and made to feel as though my qualifications for purchasing were subpar. Also mentioned that they don't make much on the loan and again I should be overwhelmed with gratitude for the " service " they are providing?? Once again on the recorded line. 

This company has caused me aggravation, stress, anxiety, loss of sleep, loss of work, loss of finances, to date over XXXX XXXX it has cost me in their mistakes, not to mention loss of work, distress, before we even think about legal fees, and nobody is taking me seriously. I've even told them this would be my next step and after my experience with them I can't possibly understand how they are still in business with the unethical, dishonest business practices. Any help the CFPB could lend to find a resolution before I resort to the press, and legal help would be much appreciated. 

Any supporting documentation needed as well as pages of email of me being insanely thorough in my communications and looping in all parties involved, I have and would be happy to share with the investigators.