Consumer complaint received 2021-12-09
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: PENNYMAC LOAN SERVICES, LLC. (TX)

On XX/XX/21 I completed my COVID-19 forbearance through my mortgagor, PennyMac Loan Services XXXX 

On XX/XX/21 I received a call from my XXXX rep, XXXX XXXX stating that I could do a flex streamline modification and that the term of my loan would be extended to 480 months making my new payment {$1500.00}. Why I inquired about why the interest rate was not also being reduced to the XXXX XXXX rate of 2.875 % she stated that the it was because my payment was deemed affordable by PennyMac. I advised that according to XXXX updated guidance released XX/XX/21, the term should be extended AND the interest rate should be lowered to the lesser of the XXXX modification interest rate or the borrowers current interest rate. My current interest rate is 4.375 % which is higher than the XXXX XXXX rate as of XX/XX/21. XXXX could not explain why PennyMac was not lowering my interest rate per the guidance from XXXX so I informed her we needed to escalate the issue to someone who could explain. She transferred me to her supervisor XXXX XXXX. I explained everything to XXXX and he advised that PennyMac was not required to follow XXXX guidance because all that mattered was that my loan was a conventional loan. I advised him that was incorrect since XXXX owns my loan. I offered to send him a copy of XXXX so that he could review the updated XXXX guidance and he stated he could google it. After reviewing the letter, XXXX stated he agreed with what I was seeing and that I should not worry about the terms XXXX provided because my mod terms were not final and that the interest rate would be corrected and that I should wait until I have the final modification documents. 

I received the modification documents late XXXX XXXX XXXX were dated XX/XX/21. The modification documents showed the same terms XXXX had provided. I again called to speak with XXXX but he was unavailable. 

XXXX called me back on XX/XX/21. He did not remember our prior conversation so I reminded him of the XXXX  guidance and my question regarding why the interest rate was not reduced. He stated that I could refinance after my trial payments. I told him that I shouldnt need to refinance and pay additional fees because the owner is my loan already said to reduce my rate. He again reviewed the letter from XXXX and said that my loan did not meet the XXXX which I advised was no longer a requirement for the flex mod that satisfies the reduced eligibility criteria. He stated he would need to review further and would get back to me. After not hearing back from XXXX timely, I called back towards the end of XXXX. XXXX said that he agreed with what I found regarding the interest rate but he had to follow his procedures and they had not been updated. I advised XXXX that the guidance was required to be in effect by XX/XX/21. He said that he would continue to review but that I should go ahead and make my first trial payment due on XX/XX/21 so that I was not reported delinquent. I have now made all 3 trial payments but my interest rate never changed and I never received an explanation. 

There is no complaints contact information on PennyMacs website ( that I was able to find ) and the XXXX department has not been helpful. Although this complaint has to do with servicing rules, I feel there is regulatory applicability ( UDAAP ) because XXXX has been unfair and deceptive in getting me to complete a modification with inaccurate terms.