Consumer complaint received 2020-01-27
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (TX)

Late XXXX our mortgage was sold from XXXX to Penny Mac ( PM ). XX/XX/XXXX we received a delinquency notice. We had been paying bi monthly on our mortgage from the beginning with XXXX, come to find out PM didn't apply the 6 payments we've made in XXXX. We called several times, we were able to find a PM agent able to assist us. We applied for bi monthly payment, sending in an additional payment for securing the program. A month later I review the monthly statement. In doing so, I notice in a small note area at the bottom of the statement stating PM doesn't apply the XXXX bi monthly payment to accounts, the money sits in a discretionary fund until the full balance is met. This was never divulged during our prior phone call conversations with PM phone associates. Firstly, as a consumer this is fraud, secondly holding my mandatory extra payment, plus half of another monthly payment is close to economic abuse, depriving me of the lost income from this money, yet potentially gaining that interest holding these funds. The next day I called and escalated the call to PM " escalation department ''. The agent was helpful, apologetic and knowledgeable, unfortunately she was incompetent. She neglected to process the PM 's systemic procedures to remove the program. We were going to apply the extra payment into the next months payment cycle keeping the account current and allowing us to skip a monthly payment. Two months later we get a delinquency notice, the agent errored on the PM process. I called escalating the escalation call to her manager, who apologized and admitted the wrong doing, said he was going to adjust the payments and call for follow up. The call never happen because our account went into delinquency status again. The escalation manager applied the WHOLE payment to principle. Creating a negative balance on our account due to missing interest. On XX/XX/XXXX my wife called to get some answers on this delinquency notice, the agent, XXXX, was rude and defensive, my wife asked for a manager. XXXX the manager read the numerous entries from our nightmare said he was going to call us back with an update on repairing the status of the account. That call never came, he adjusted the account, we received our XXXX statement showing the corrections. 
The primary problem with this is my inability to change providers at a minimal cost. Basically I've been kidnapped and now I'm a capture client. I have asked for my account to be processed on the next debt loan sale, but these managers and phone agents don't know that is. We have contemplated refinancing, but the cost will be approximately XXXX in the short term, and no telling in the log term, due to our current low percentage rate. All I want is the power to close my account. move the account to a more customer-centric organization. Penny Mac does not train their phone agents well and the managers seem to be equally incompetent. 

MISC Notes : XX/XX/XXXX - did not hear from them but we did get our statement today and it was corrected XX/XX/XXXX - called and spoke with XXXX ; she is going back and reviewing my account to confirm where the missing payment is - she shows that we owe money by XX/XX/XXXX ; the request that XXXX submitted to reapply the funds from XXXX was declined because it was over 90 days on the XXXX, so XXXX is looking into what we can do next ; is going to submit it over to his manager/boss - he will have the account coded so that it will process correctly *Asked for manager - XXXX XXXX he said onXXXX of them - him or XXXX XXXX will reach out to me when they hear from his manager- also named XXXX - as he is out of the office today ; XXXX is hoping that the request will be approved and submitted to fix the XXXX issue and then everything will fall into place and we will no longer be put behind ; he asked for XXXX weeks to get it fixed ** XXXX payments were put towards principle instead of mortgage payment * XXXX confirmed that the late charges will be automatically waived bc payments will be reallocated ; pennymac will not be reporting any negative credit on account * XXXX said that it looks like No one did research in the past to figure out why it was happening, so that is why no one reached out to us or corrected the issue * XXXX extended XXXX grace period for XX/XX/XXXX to the end of XXXX XXXX 's direct callback number - XXXX XXXX * He said that he has put a followup for me on XX/XX/XXXX - will reach out with status