Consumer complaint received 2020-11-04
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (TN)

I am writing to you in attempt to correct the error to my mortgage servicing since XXXX of XXXX regarding my forbearance plan due to COVID 19. I entered a forbearance plan in XXXX of this year, and requested to end my forbearance in late XXXX. This original deferment included my XXXX payments with my next scheduled payment due XX/XX/XXXX. I was told in XXXX of XXXX as I requested to end my forbearance that I could make a payment anytime between when I requested my modification and my next due date which was set as XX/XX/XXXX and that the payment made would count toward my currently required XXXX payment pushing my next required payment to XX/XX/XXXX. 
This was not the case, I was told in XX/XX/XXXX that once I made what I understood to be my regular payment for XX/XX/XXXX on XX/XX/XXXX after requesting to end forbearance, that payment was instead applied to the XXXX balance owed during the forbearance plan, and they then only deferred 4 months of payment ( XXXX ) in the paperwork for my modification/deferral despite the information I was given upon requesting the end of my forbearance. I was not made aware of this until after the grace period for XXXX due to the extensive amount of time it took for the modification paperwork to be completed. After the modification paperwork was completed I called to inquire as to why I was still showing as past due for XX/XX/XXXX. 
After it was explained to me that they applied the payment differently than I was told it would be applied I was told that this was an error on Penny Macs part of misinformation. I was then given a 4 month run around from several people in several departments none of which seem to know how to fix the problem. I have been told so many things by so many company representatives that I have had to record the phone calls with Penny Mac due to the lack of reliability of the information I have received. 
My understanding to date is that I have been told that the deferral/loan modification paperwork must be redrawn and that instead of XXXX being included in the deferment, they are leaving the previous XX/XX/XXXX payment to count toward XXXX and redrawing the deferment paperwork to include the full 5 months of originally requested forbearance with XXXX included in the corrected deferral in accordance with the information I was originally given regarding my loan modification. 
I was told that this was possible several times in XXXX of XXXX and since then I have had multiple different representatives tell me : that is it possible, it is not possible, they dont have the authority to do this, penny mac does have the authority to do this, and that the redraw paperwork was drafted and sent to XXXX XXXX for approval in early XXXX because penny mac cant approve it, that paperwork was approved by XXXX XXXX in late XXXX, and then most recently that a redraw hasnt been drafted at all. I have also been assured several times that my credit has not and will not be reported negatively in any way. I have spoken to : Modification point of contact : XXXX XXXX, XXXX XXXX, XXXX XXXX, Collections : XXXX, and supervisor to modifications : XXXX XXXX ex XXXX, XXXX XXXX in TX ex XXXX, XXXX XXXX, and XXXX XXXX. 
To make things more complex, I received my escrow analysis letter in XXXX of this year prior to ending forbearance stating that there was a shortage. I also received a notice from my homeowners insurance that my homeowners ins was not paid out of escrow and that the policy was going to expire if not paid by my mortgage servicer. I had to call in XXXX to the Escrow department for a payment to be sent over to ensure that my insurance coverage did not expire because PennyMac didnt pay the premium while I was in forbearance. At that time in XXXX I specifically asked the rep if I needed to pay the {$46.00} escrow shortage, and they told me not to pay it because my monthly payment would likely change during the post forbearance period, and that if they took the escrow shortage payment then it would most likely be credited toward the balance in forbearance and not to the escrow shortage and my payment would change anyway. 
Once my deferment payment was calculated the first time I was told that my payment was still XXXX, and they did not draw up the modification to take into account that my payment had changed due to escrow shortage. When talking to one of the reps in XXXX he informed me that my payment had changed due to the escrow shortage and that the XX/XX/XXXX XXXX payment I paid was less than required. He then told me to correct the problem that I could make an additional payment on XX/XX/XXXX that would be applied to the escrow shortage correcting the problem. I made a payment of XXXX on XX/XX/XXXX with this understanding. I called on XXXX and was told that this XXXX payment was applied to late fees instead. Late fees that I should not have been accruing had the deferment process been corrected in XXXX like I was told it was. Since I was told of the increase in my monthly payment I have since made my XXXX XXXX and XXXX XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX payments on time over the phone because it will not let me make them online. 
I have been told since XX/XX/XXXX that my incorrect deferment and subsequent mismanagement of processing was an error on PennyMacs part, and that it is being or has already been corrected. I have not been able to confirm this in any way despite multiple representatives telling me otherwise. I am still receiving collection calls, and letters stating that my credit will be reported negatively if I do not bring my account current. I also show late fees assessed online that should not apply due to the incorrect deferment, and the currently pending redraw. 
I have called upwards of 10 times to speak with representatives in multiple departments at PennyMac 's phone services and to this date Penny Mac has not conducted any action to correct these errors.