Consumer complaint received 2016-03-09
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: PENNYMAC LOAN SERVICES, LLC. (OH)

This mortgage loan originated with PennyMac Loan Services in approximately XXXX XXXX to purchase a new construction home for the address above. All parties to the transaction, including PennyMac were aware that the collateral for this loan was new construction. The first year taxes for this loan were paid on the land value only ( as normal with new construction ) and as both PennyMac and myself were aware, for the second year taxes would be calculated on the land value plus improvements to the property, which would cause the amount due for taxes to increase. When I received my escrow analysis from PennyMac dated XXXX/XXXX/XXXX, I received a surplus refund check from them in the amount {$1600.00}. My first thought was to review the amount they were collecting for my taxes, knowing that this amount would increase with the value of the improvements adding on due to the new construction. In reviewing the escrow analysis, it appeared that they had taken that into account on the new escrow analysis as they increased the amount they were anticipating to disburse for taxes by nearly XXXX % from {$480.00} every 6 months to {$1300.00} every 6 months. Then, in my XXXX/XXXX/XXXX monthly statement from PennyMac I noticed a County Tax distribution on XXXX/XXXX/XXXX in the amount of {$2900.00}. Seeing this amount caused me to look even deeper at my statement and I noticed a negative Escrow balance of {$540.00}. Looking more closely at the monthly Escrow payment of {$260.00} made it obvious that the escrow account was going to be significantly short to pay this amount again in another 6 months. It quickly became obvious to me that PennyMac had significantly underestimated the amount of taxes that would be coming due and were not collecting anywhere near the correct amount for expected taxes. To make matters even worse, I had not heard one word from PennyMac on this, in order to let me know there was an issue with the escrow account. This type of action by PennyMac is putting an enormous undue burden on me as the borrower due to their inadequate escrow analysis process relating to new construction. It pains me to think about what the situation would have been down the road had I not reached out to PennyMac when I did to have them run a new escrow analysis and get this straightened out. I reached out to PennyMac regarding this issue and made an attempt to have them rectify this situation. I was very displeased with the way they have not adequately addressed my situation at all. In speaking with their customer service agent XXXX, who refused to give any information about himself other than a first name, I got absolutely nowhere. He stated that the only thing he could do regarding this is look to spread out the escrow shortage over more years. This does nothing to lower the impact of what I would have to pay to clear this issue. It only spreads the pain out for a longer period of time. This is an insult to me as the borrower and makes me feel like PennyMac believes they can treat me as if I am an ignorant, uneducated borrower. As previously stated, they are more than happy to sit back and collect my monthly payment through auto debit each month with very little effort on their part, but then the first time assistance and help is needed from their side, it is nowhere to be found. I believe that my mortgage servicer has an obligation to protect their borrower and do their best to have adequate checks and balances to ensure they are not causing undue harm to their borrower.