Consumer complaint received 2019-02-05
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (CA)

On XX/XX/XXXX I sustained a loss to my home due to water damage. Working with my home insurance agency and licensed contractors, I obtained an estimate to repair damages and received an initial check from the insurance agency in the amount of {$15.00}, XXXX in order to contract with a builder to begin repair work. The check was issued on XX/XX/XXXX an image of the check and the adjuster 's report is provided with this complaint. 

I was informed that due to California law the claim check would be issued in my and my wife 's names, as we are the insured, and in PennyMac 's name, as they are my mortgage holder. I would need to contact PennyMac to receive instructions for their endorsement of the check so that I could access funds for repair. 

XX/XX/XXXX I contacted PennyMac and was transferred to their insurance claim department. I requested instructions to receive their endorsement. I was asked for the amount of the check and responded {$15000.00}. I was placed on hold, after which I was told that I qualified for a simple endorse and return. I would send the check to them, unendorsed by myself and my wife, they would take 2 business days to endorse the check, and then send it back to me. I was told that I could expedite the process by sending the check overnight to a special address, and including a prepaid overnight return envelope with my request. I was also told the only documentation that I needed to include was the unendorsed check, and the adjuster 's report. 

Saturday, XX/XX/XXXX - I sent the documentation PennyMac requested, with the unendorsed check to the address provided. I paid for overnight service through XXXX, and I paid for overnight return service to be included as well. The cost of this service was {$110.00}. Receipt and documentation is attached to this complaint. 

Monday, XX/XX/XXXX - My check and documentation were delivered to XXXX at XXXX local time. A screenshot of delivery confirmation from XXXX is included with this complaint. 

Friday, XX/XX/XXXX - I called XXXX to enquire as to the status of my check. While according to my first contact with them I should have had the check back to me by this point, the XXXX tracking number showed that the package had not been sent at all. I was told that since the amount of my check was over {$15000.00}, it did not in fact qualify for endorse and return, and at the moment it was being held by corporate offices until they made a decision as to whether they would make an exception, in which case they could endorse and return my check, or if they would not make an exception. When I enquired what would happen if an exception was not made, I was told that PennyMac would hold on to my money and disburse it in increments. I was not given any details as to what this meant. I was not advised of the process, or any additional documents that I needed to provide. I was only told that there would be a decision made within 8 business days. When I enquired as to why I was not told this information during my initial contact to receive instructions, the representative could not give me an answer, she only told me that this was policy. I asked to speak with someone who could answer my questions. I was placed on hold to speak with a " supervisor. '' After a 10-15 minute hold I was told by the original operator that a supervisor could not be reached at this time, and that she would 1 ) place a request to expedite the decision on my check ; 2 ) request that a supervisor call me back directly, by end of business that day ; and 3 ) transfer me to a supervisor 's voicemail to leave a message also requesting callback. I agreed and left a voicemail at an unidentified voicemail prompt citing my loan number, my name, phone number and request. I did not receive a phone call back by end of business that day. 

Monday, XX/XX/XXXX - I called PennyMac 's insurance handling department on the morning of XX/XX/XXXX, aXXXX XXXX XXXX PST. The total duration of my call was 35 minutes. I first spoke with a representative who told me that my check had been deposited into a holding account and that I would need to provide significant additional documentation in order to access the funds. I first enquired as to how PennyMac could deposit/cash a check made out to my wife and myself that neither of us had endorsed. The representative was not able to answer the question, only saying that " We are able to cash that check. '' I must note at this point that I am disturbed that PennyMac can cash a check written to me, without my endorsement. Of course, the irony of this is that this process began because I, the consumer, could not cash the same check without their endorsement. 

This representative could not answer my questions : 1 ) Why has the process changed since my initial phone call? ; 2 ) How can PennyMac cash a check without my endorsement? ; 3 ) Where is this money being held, and is PennyMac receiving a cash benefit from holding it? ; 4 ) What happened to the process where corporate was going to make a decision on my exception? When she was not able to answer my questions I asked to speak with someone who could. I was placed on hold and transferred.

The representative I spoke with at that point identified herself as an " escalation representative. '' I asked her the same questions. She was unable to provide any answers, let alone adequate answers to my questions. She only told me that PennyMac was able to deposit my check without my endorsement, and that I needed to provide additional documentation. I asked where I find out about this process, as it had still not been laid out to me. I was told that she could fax me the documentation, or send it through the mail. I said that this seems to me to be a ridiculous process. I asked how I could have possibly known about this process unless I had called? Was it PennyMac 's practice to not inform customers about how to access funds so that they could repair their houses? I was also told that " PennyMac would not allow me to make repairs on my own house. '' When I asked what the consequences would be if I did make my own repairs ( which, I am not doing ), what would happen to this money being held - would it just be absorbed by PennyMac? I was told that if I did not follow their process ( still not explained to me ), the funds would sit until a decision from corporate was made as to what to do with them.

I requested to speak to someone who could answer my questions. I was placed on hold to wait for a supervisor. After about 10 minutes on hold, the escalation representative returned to say that no supervisors were available, and that she would request that one call me back by the end of business on Monday, XX/XX/XXXX - that same day. I replied that I would prefer to simply wait on hold as long as it takes, as a supervisor was supposed to call me on Friday, and they did not. The representative informed me that she could not allow me to stay on hold since Mondays are busy days and they couldn't keep lines tied up with people on hold. I informed her that Mondays are busy days for me as well, and that it was inconvenient for PennyMac to be holding up a significant sum of money so that I could repair my home. She guaranteed me that a supervisor would call me back by end of business. I asked to speak to anyone in their corporate office who could give me a clue as to how this process was working. I was told no. Seeing I would get no further with this representative, I agreed and hung up. 

I was not called back by end of business that day. I still have not been called back. 

Also on Monday, XX/XX/XXXX - my insurance agent, seeking to provide me assistance, called PennyMac on my behalf and spoke to someone in the insurance claims department. They called me on the phone together to obtain permission for my agent to communicate about my account. I gave that permission. My agent was able to obtain no helpful information. In fact, the information provided to her was contradictory in that they said I would be receiving a check for funds ( they did not specify an amount ), by Thursday, XX/XX/XXXX. My agent was not clear why this was the case. I do not believe that I will receive a check this week. 

I do not consider the correspondence with my agent to be the " callback '' I was guaranteed from the escalation representative. 

One final item, from Monday, XX/XX/XXXX. Upon calling and hearing the automated response menu, I noted that there was an option to log into a particular website, insuranceclaimcheck.com, in order to work through the claim process. This was never once mentioned to me by any customer service representative that I spoke with. After my phone call I went to the website and created an account. This actually seems to be a whole website devoted to helping customers through this process - however, when I login I get a popup window that states that my account needs special attention and can not be serviced online, that I need to contact customer service. The phone number for insurance claims is given. So, I can not access this website, and I can not access adequate customer service from PennyMac 's phone system.

At this point - PennyMac is holding {$15000.00} of money allocated to me to complete repairs on my house. They are doing this, as I understand, to make sure that I actually complete repairs on my house. However, I can not begin repairs on my house without the money allocated by my home insurance to do so. Further, I can not access that money because I have not been given a process from PennyMac by which I might access that money. The longer the property goes unrepaired the more of a significant disruption this is to my family 's lives. 

I will be calling PennyMac back this morning to see what sort of progress I can make at this point.