Consumer complaint received 2022-11-23
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (VA)

In XX/XX/XXXX, I closed he mortgage with XXXX XXXX XXXX XXXX. In XX/XX/XXXX, XXXX XXXX XXXX XXXX  sold the mortgage to PennyMac. In XXXX, PennyMac did not pay on time City Taxes ; supposedly they were not informed that the property owned County & City Taxes. After them requesting and I submitting documentation that they should have, they paid the taxes. There were additional issues with trying to submit monthly payments, but they were resolved. 

In XX/XX/XXXX, I requested the elimination of the Private Mortgage Insurance ( PMI ). PennyMac did not want to eliminate the PMI because of the original valuation of the property, when I was requesting an updated valuation given significant changes to the property. After several calls and discussions with different PennyMac Representatives, I was informed that if I pay {$150.00} for a brokered valuation and the brokered valuation came above the original value, the {$150.00} was going to be applied to the monthly payment. While the valuation was completed, resulting in a higher value and the elimination of the PMI, the {$150.00} was never applied to the monthly payment, and it took forever to complete such elimination. PennyMack also changed the escrow payment, when that was not requested. 

On XX/XX/XXXX, I received a letter from PennyMac stating that they will be paying a New Homeowners insurance vendor at their discretion, since Ive not submitted evidence of the home insurance policy. On that same day, I wrote PennyMac 2 messages via the Message Center, asking clarification if the information in their webpage ( my account ) for my Homeowners insurance was Accurate. I provided a printscreen or screenshot of the information on the PennyMac website. I also called PennyMac, and I inquired about how come PennyMac has not paid my insurance if the information is accurate in the system and it remains the same.

The Representative stated that PennyMac did not receive any bill from the insurance company. I asked about how come PennyMac did not receive the bill if the 2021 year the bill was paid by them, and the insurance remain the same ( the escrow account reflects such action ). The Representative stated that they dont contact the insurance company given insurance company could be change by the customer, and requested me to complete tasks that they could/should have completed. I was puzzled by the responses since the XX/XX/XXXX letter stated that PennyMac will contact and select an insurance policy on my behalf that I will need to pay not matter what. On that call/conversation, I stated that I did not want any insurance from any other company. 

On XX/XX/XXXX, I contacted the insurance company and the Agent, who communicated that PennyMac and/or XXXX  XXXX XXXX XXXX  should have contacted them to update the Lien Holder or Mortgagee in the policy in XXXX when the loan was sold. The insurance company and the Agent did not understand why either party did not contact them, and assure that the situation was going to be resolved. 

Since on XX/XX/XXXX, I was informed that PennyMac should have contacted the insurance company to verify the status or request a voice authorization, I wrote another message on XX/XX/XXXX requesting PennyMac to please contact the Insurance Agent ( just in case ). On XX/XX/XXXX ( today ), I received a response from PennyMac providing me the information ( insurance department phone, address, and fax ) that I already had instead of contacting my insurance the Agent, as I requested. On that same day, I also noted that in my account is no longer reflecting the information of my homeowners insurance. 

PennyMac has been committing mistakes or avoid taking responsibility, affecting the payments in my escrow account/mortgage as well as eliminating the peace of mind of maintaining a reasonable monthly payment for actions they have not completed. As a recognized mortgage servicing company, their processes and controls as well as customer service should be up to par with their operations. It appears that PennyMac does not have the appropriate internal controls/systems to complete the required functions, affecting the customers mortgage payments. I would appreciate that somebody investigate their practices thus customers like me are no longer affected by malpractices from this entity.