Consumer complaint received 2022-09-07
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — 
Company: PENNYMAC LOAN SERVICES, LLC. (VA)

XXXX : My home loan was in forbearance from XX/XX/XXXX to XX/XX/XXXX. I qualify for two Veteran Affairs programs, and although not legally required, PennyMac isn't honoring these programs. Only having two options ( lump-sum or loan modification ) puts me in a larger financial bind than when I started the forbearance. I feel I'm being punished for using forbearance and would like PennyMac to honor one of the two VA programs I currently qualify for. 

- In XX/XX/XXXX, I requested forbearance on my PennyMac VA home loan ( single-family home ) - On XXXX XX/XX/XXXX, my forbearance period expired. 

- At the end of this forbearance period, I owed {$15000.00}. 

- I was under the impression that I could file for the Veteran 's Assistance Partial Claim Payment Program, which expires on XXXX XX/XX/XXXX. 

- On XXXX XX/XX/XXXX, I called PennyMac several times. I was told by two representatives that the VA stopped the Veteran 's Assistance Partial Claim Payment Program. I informed them that the program doesn't expire until XXXX XX/XX/XXXX and I have four months to file the paperwork, to which they both re-stated that PennyMac stopped processing these requests on XXXX XX/XX/XXXX because it takes over 60 days to process. 

- On XXXX XX/XX/XXXX, I contacted my VA Loan Technician ; he confirmed that PennyMac was one of three companies who stopped filing claims for Veteran 's Assistance Partial Claim Payment Program, but he said I met all of the qualifications for the Veteran 's Disaster Extension Modification ( VA Manual 26-3, Chapter 5 ). The VA Loan Tech initiated a three-way call with me and PennyMac to discuss this option for me. The PennyMac rep had not heard of this option ; further stating my only two options were to pay the lump-sum or to do a loan modification. I currently have a fixed rate of 2.375 % on my home loan, and the VA Loan Tech asked them to look at the VA Disaster Extension Modification ( this program would put 12 months of mortgage payments at the end of my mortage without interest ) option because modifying my loan at the current rates would put me in a financial bind ; basically, I would end up in a worse financial position than when I started the forbearance. PennyMac insisted I only had two options but would submit a request to the PennyMac Loan Mitigation department to research the VA Disaster Extension Modification as an option for me. 

- On XXXX XX/XX/XXXX, the VA Loan Tech sent me Chapter 5 of the VA Manual 26-3, which I then submitted through my PennyMac account portal at XXXXXXXX. I received a message back from PennyMac on the same day at XXXXXXXX stating the information was forwarded to the Loss Mitigation Department and to " ... please allow time for your single point of contact to reach out to you to address your concerns. '' - On XXXX XX/XX/XXXX, I submitted an application for the Virginia Disaster Relief Program. At XXXX the same day, I sent a message to PennyMac through my loan portal to let them know. At XXXX PennyMac responded with the same message sent to me on XXXX XX/XX/XXXX. 

Thank you for your time and attention with this matter. I hope to reach a solution that satisfies me and PennyMac.