Consumer complaint received 2023-02-07
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (SC)

Company increasing escrow unnecessarily : XX/XX/XXXX - Notified that we had a new Escrow Analysis for review. 

XX/XX/XXXX - I responded that their analysis was using an incorrect property tax amount and provided my own escrow spreadsheet analysis outlining my argument. At odds is the fact they were setting the property tax at {$7900.00} when, due to a law in XXXX XXXX, my taxes actually decreased in XXXX to {$6800.00}. I provided a link to the XXXX XXXX for XXXX  in my response. Note at this point, they had paid the {$6800.00} amount XXXX month earlier on XX/XX/XXXX. So the use of the {$7900.00} in their analysis was clearly incorrect. 

XX/XX/XXXX - Company responded, requesting I consent to another loan analysis, which I did on XX/XX/XXXX, asking them specifically to use the {$6800.00} property tax amount in that analysis. 

XX/XX/XXXX - Company responded that " as the payment is increasing, we are required to set the effective date for at least XXXX  months out '' .... '' if we update your tax amount to {$6800.00} annually the new payment effective XX/XX/XXXX would be {$3000.00}. '' They then requested I consent to proceed with this payment. Note that at this point, they were increasing my escrow by {$27.00} - still unnecessary, but given it was such a small amount, I was ok with it. 

XX/XX/XXXX - I emailed my consent to increase the escrow effective XX/XX/XXXX. 

XX/XX/XXXX - I received an email from the company stating " Your new monthly payment beginning XX/XX/XXXX is {$3000.00}. '' The email did mention that if there was a shortfall in the future we'd have to deal with that, but it appeared to be standard language they include in these types of correspondence. 

XX/XX/XXXX - I logged into my account online to pay the XXXX mortgage and noticed that the company had already increased my escrow ( a month early from when they said they were " required '' to make it effective ), and on top of that, they increased the escrow {$160.00} without any kind of notice. Their email of XX/XX/XXXX was unequivocal in stating when and what my new payment would be yet they blindsided me with a larger increase a month early. I emailed them that day requesting an explanation. 

XX/XX/XXXX - The company responded with telling me the XX/XX/XXXX analysis was done with the {$XXXX} amount and that our insurance increased to {$XXXX} from {$XXXX} and that was an issue as well. In addition, the company alleged that I provided no documentation re : the taxes, and that they were also tacking on an " escrow reserve requirement '' to our account. 

XX/XX/XXXX - I emailed back refuting the content and tone of their XX/XX/XXXX email. I did, in fact, provide a link to the relevant XXXX  information re : the lower taxes ; the insurance they made seem like a new issue was already at {$XXXX} back in XXXX of XXXX so it wasn't a new revelation ; I provided my own analysis again for their review; etc. I have yet to hear back. I have not praid my XXXX mortgage payment, and have another week or so before late fees become involved. 

I am concerned primarily with the fact that I am getting XXXX different stories from this company and that they will be essentially holding approximately {$XXXX} in excess escrow by XX/XX/XXXX if they do not change their analysis. That is money I should be getting a measly few pennies of interest on, not them. So yes, it's mostly principle here that I am frustrated with. But also, they reneged on their own " XXXX  day notice '' requirement and, if I read the rules correctly on your website, even with the formula where they can keep XXXX extra months of escrow plus {$50.00}, their new escrow amount is slightly in excess of that. 

Thank you for letting me tell my story! 
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