Consumer complaint received 2016-06-16
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: PENNYMAC LOAN SERVICES, LLC. (TX)

XXXX XXXX, 2016 our home damaged as a result of a hail storm, causing more than {$79000.00} in damage to property. XXXX XXXX, 2016 we notified our home owner insurance company ( XXXX ) that our home had received significant damage. XXXX XXXX, 2016 we contacted PennyMac to notify them as I mortgage holder of the damage and obtain instructions on their process requirement. We were provided a Claim Packet outlining the document that we must submit upon receipt of their letter. XXXX XXXX, 2016 we received XXXX checks from XXXX XXXX. We endorsed the checks per the instructions of PennyMac mailed the check to them. XXXX XXXX, 2016 the checks were returned to us by PennyMac. We have a second mortgage and because XXXX XXXX had not endorsed the checks. Nothing in PennyMac suggests, states or instruct us that we should first obtain XXXX XXXX 's endorsement on the checks prior to sending them to PennyMac. We mailed to checks to XXXX XXXX for endorsement and was asked if we wanted them to mail directly to PennyMac? All that they required is that we provide them with a letter and the address and account number with PennyMac and they would XXXX the check to PennyMac Loss Draft Services at the address provided. Why could n't PennyMac have taken this same approach and avoided such a long delay? I personally made at least there ( 3 ) subsequent phone calls to PennyMac asking if they had all the documents that they needed and was told yes each time. 
XXXX XXXX, 2016, PennyMac received the check from XXXX XXXX and they have been stuck on 2-3 days to process ever since no matter what you asked regarding the status or when will they disbursed the first check so that the contractor start on the repairs on our home. 
XXXX XXXX, 2016, PennyMac mailed a letter to us informing us that they do not have all of the documents needed to set up a draw to initiate repairs. It will take 2-3 days to review all of the documentation that they have had since XX/XX/XXXX with the exception of the check from XXXX. 
XXXX XXXX, 2016, I phoned PennyMac to once again inquire about the status of our claim as to when could we expect to see the first disbursement check? Response. They are still reviewing the documents which will take 2-3 business days. After their review it will take 2-3 business days to setup the account. Then another 2-3 business days before a check would be mailed by XXXX, two day delivery. XXXX XXXX, 2016, we received a letter from PennyMac " the account is currently being reviewed to determine eligibility for disbursement. '' A second paragraph states " we are currently conducting a full review of the loan as it relates to the request. The account is currently being reviewed to determine eligibility for disbursement. '' What loan, we are not applying for a loan we just want funds that XXXX XXXX provided us for the repair of our home to be released so that our contractor can began work. What I have found to be a certainty with regards to PennyMac when you call, ALL of their employees will say 2-3 business days throughout the conversation regardless of what the situation. Documents being reviewed and will take XXXX business days. PennyMac 's ridiculous process for receiving insurance funds/draws to make repairs to our home is facing a robber and held up by the PennyMac. Their process for property lost claims over XXXX using a restricted escrow account causes extreme delays in the repairs process. These delays cause a tremendous amount of stress, time and money. PennyMac requires you to be at XXXX % complete after the initial draw using only XXXX of the funds. Then you are required to meet a XXXX % with the next draw of XXXX. In other words you will need to be 90 % complete to get XXXX of your money. The draw process has so many delays : Once you schedule the first inspection after receiving the initial draw, there is a 2-3 day wait just to get