Consumer complaint received 2022-05-13
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (TX)

I contacted PennyMac via phone several times in XXXX to ask for my PMI to be deleted since my house had reached a loan to value of above 80 % which validates PMI deletion. I was put on hold for 30+ min each of the times I called. I then resorted to using their online messaging center which I contacted then on these dates. 

XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and now XX/XX/XXXX. 

The first 2 times I requested PMI deletion, I received an automated letter stating that I did not have the loan to value of 80 % but could still be eligible for PMI deletion if the market price was above 80 % and made improvements ( which I have ) or reached a LTV or 75 % or greater after 24 months of PMI payments. 
*My house at the time had a LTV double of what they require. * I responded that I was eligible under their guidelines and wanted to proceed with PMI deletion. I received another automated letter informing the same. I then sent the XX/XX/XXXX message claiming that PennyMac services were fraudulent since there appeared to be massive barriers purposely put in place to prevent individuals from removing PMI. 

Within 1 week a representative called me on ( XX/XX/XXXX ) to find out more about the fraud. I discussed with them that all of their services such as making payments and talking with loan officers were handled within 5 min while trying to remove PMI had perceivable engineered roadblocks. The agent agreed with me and within 15 min had someone to discuss PMI contact me. I shared all my information and paid {$100.00} for an appraisal to be done. I was also told I would receive a notice within 5-7 business days. Afterwards I received another letter on XX/XX/XXXX that was postmarked XX/XX/XXXX. This letter stated that I was not eligible PMI deletion additionally my {$100.00} dollars has not been refunded or a individual contacted me. 

I then called customer service to discuss the letter I received stating I was not eligible for PMI deletion and that I wanted an appraisal done. The customer representative told me the only way I could get an appraisal was to take out another loan. Since I was curious on the current market rates and how much my house was worth I decided to look at getting a new loan. Within 15 min the loan officer said my house had moved substantially in value according to their internal budgeting software and if I took out a new loan I could receive $ XXXX in cash & remove my PMI. 

So here is a concise list of my complaint. 

1. PennyMac has engineered their system with numerous roadblocks to remove PMI. One of the ways they do this is to create massive time delays which negatively hurt single parents and financially sensitive demographics who can not take time off like I can. 

2. PennyMac has not refunded my money furthermore adding question about their ethics. 

3. PennyMac systems push people into new loans instead of helping resolve legitimate problems. 

4. PennyMac due to numerous delays in removing my PMI has now collected several months of PMI payments totaling hundreds of dollars. 


PennyMac is either grossly negligent or is engineering their systems to take advantage of home owners stealing both valuable time and money.