Consumer complaint received 2021-03-16
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (MA)

Dear CFPB Representative - I purchased a home loan through XXXX XXXX. The mortgage was originally through XXXX but was transferred to PennyMac. 

I have a VA Loan where the Property Tax and Homeowner Insurance are included in the Mortgage payment. 

PennyMac is trying to over-charge me on my escrow. In XX/XX/XXXX, they sent me a letter stating they re-calculated my escrow and told me I had an escrow shortage of {$350.00} and that I needed to pay the {$350.00} in order to keep my mortgage payments at the same amount ( {$1300.00} ). I submitted the {$350.00} and my mortgage payment stayed the same throughout XXXX. 

My total property tax for XXXX was {$3000.00}. My Homeowner insurance was {$880.00}. So, a total of {$3900.00} was the total escrow amount needed for XXXX without the reserves. I am required to have an escrow reserve amount of 1/6 the total amount, or 2 months worth of escrow reserves. The escrow reserve amount should be {$690.00} ( $ XXXX = XXXX x XXXX = {$650.00} ). So the total Escrow amount for XXXX should've been {$4600.00} ( {$3900.00} + {$650.00} ). 

In XXXX, the property tax and insurance was already paid with the escrow amount and reserves, but the reserves were short {$11.00}. 

The XXXX payments I made into Escrow were as follows : ( 1 ) I made a single payment of {$650.00} on XXXX XX/XX/XXXX after PennyMac 's escrow recalculation, along with 11 more months of payment of {$290.00} each. In XXXX, I paid into my escrow a total amount of {$3900.00} ( {$3200.00} + {$650.00} ). My Property Taxes and Insurance came to {$3900.00}. I owe {$11.00} for my XXXX escrow - but Pennymac is trying to make me pay an additional {$1000.00} spread out over the year XXXX for the {$11.00} shortage in the XXXX reserves!! 

For XXXX, my Property Tax is {$3100.00} and my Insurance is {$900.00}. That is a total of {$4100.00} for my XXXX escrow needs without the reserves. I am required by law to have 1/6 of the amount, or 2 months of escrow in reserves. That amount should be {$690.00} ( $ XXXX = {$340.00} x 2 = {$690.00} for reserves ). So the total Escrow amount needed for XXXX should be {$4800.00} ( {$4100.00} + {$690.00} ). Therefore, in XXXX I am required to have a monthly escrow payment of {$400.00} ( $ XXXX = {$400.00} ). 

Right now, my escrow payments are {$290.00}. That means my mortgage should increase by {$100.00} each month to increase the escrow amounts to XXXX. My mortgage should go from {$1300.00} to {$1400.00}. 

Instead, PennyMc is trying to make me pay and additional {$32.00} per month over and an additional {$390.00} for the year above the required escrow reserves. PennyMac is trying to get me to pay for back reserves THAT WERE NOT EVEN NEEDED! 

I also think PennyMac has made me back-pay for reserve escrow that was not needed and not used in the past!! This year is the first time I am realizing that I only owe {$11.00} dollars and yet PennyMac wants me to pay more money ( {$390.00} ) than the money I was actually deficit ( {$11.00} ). 

Could someone please help me fight PennyMac on this? I have all of my records - payments, taxes and insurance amounts. Any and all help is appreciated! Thank you! 

XXXX XXXX XXXX ( Cell ) XXXX XXXX XXXX ) XXXX ( eMail )