Consumer complaint received 2021-04-10
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (OR)

I'm asking for help with a mortgage company. We are victims of the XXXX that hit our town in XXXX. Our insurance has been very helpful but our mortgage company Penny Mac has not. They were sent {$250000.00} insurance payment in XXXX, from the total loss of our home. We have been ready to rebuild and, asking for funds to be released for months. It is XX/XX/XXXX and as of yet they still have not released any funds. While we are charged interest on our {$230000.00} VA mortgage ( which right now is in Covid-19 Mortgage Relief plan ) each month they have held our {$250000.00} for 4+ months. Though a twisted tangled set of demands week after week for paperwork that doesn't get sent to us or new demands for " items '' we forgot you needed. Only to be followed by oh you need this form as well. Each form takes 3 days to " upload '' to their system. Then followed by up to 8 days to review, then you of course need more papers that we forgot to get to you. If you happen to jump through all their hoops just right then they need another 6 days to " write '' you a check then days to have it mailed. This has left my builder without funds he needs to start. Making us use {$12000.00} ( to pour foundation ) of our own content insurance money to not be left behind in the building process. I have recently learned that they have seen that we have Covid relief plan. They seem to have gotten worse and acted punitively reducing amount of funds from {$120000.00} that was supposed to be issued in check form Monday in our names ( this should of happened weeks ago. ) Today 4 months later they are only sending {$40000.00} ( with the builder as payee on the check as well, after being told on Friday that the check would be sent to home owner so they can keep an eye on the build process before paying out contractor. ) This all seems punitive to us after they learned we had Federally mandated Covid Relief and feels like it should be breaking federal law for housing protection with Covid and FEMA assisted firestorm relief. I have been lied to and jersey around so many times. It's wrong and unethical to collect thousands of dollars interest on my mortgage while holding the entire amount plus $ XXXX of my own money. I was also told when I complained about the cost of building materials going up while they hold the money that I should ask the insurance to pay more when it's PennyMacs fault for holding the funds for these past 4 months! 
I have added up just my phone conversations with them it is 8 HOURS and 54 MINUTES of time on the phone at times while I'm trying to work. 34, THIRTY FOUR! phone calls in all starting XX/XX/XXXX. 
Many documents uploaded and requested besides these phone calls. Hours of hoops, the last one came this morning when they found a new form they forgot about that must be turned in before they release funds. This is the third form they forgot to tell me I needed.

I have jumped through every hoop they have asked sometimes as many as 6 times for just one piece of paperwork, ( last month they said they had tech issues and never sent required paper each of the 5 times I requesed it, which added several more weeks in mail time and falsely telling me they were sent when they never were sent. They also say they can't accept or send emails. ) Even mailing XXXX package to my burnt out home, instead of current address. Not accepting copies and asking for them to very resent, then they again need 3 to 8+ days to look then over. If your able to check the phone logs and history on my account it would be very telling for you. 
The standard that they are supposed to release to each homeowner is 33.3 % they told me last week when I threatened to file a complaint that they would release half because of the trouble they have caused in the cost of rebuilding rising as they drag their feet and hold onto the funds. ) After noticing we have Covid relief on our mortgage three days ago they have treated me differently, rudely accusatory and still more feet dragging. All borrowers are granted the third in increments to rebuild and then starts the hoops again to get the other two thirds, but not for those poor people who have Covid Relief???. Since they have held my money the cost of sheetrock has gone up 40 % and cost of lumber has skyrocketed too. Can you help us and look into the goings on at Pennymac. I am disgusted that this could happen to any fire victim while dealing with the Covid-19 downturn in my business. My business was also affected by the fires that burnt up to and into its back door and was forced to be closed for another 3 + weeks for smoke damage on top of the Covid shut down and having Covid in XXXX missing another 3 weeks of work. I am also operating at a loss of 25 % clientele since Covid began.

I am frustrated and shocked that someone's insurance funds could be held and manipulated by a financial institution. I'm told if I wanted to talk to Management in Penny Mac that I would have to write a letter and drop it in the mail. There is no other way to contact them. Unacceptable behavior while they hold my rebuild funds.

Can you please help me and look into what they are doing to just one of the many home owners that lost everything in the fires? This must be happening to others, I want it to stop with me. I have heard echos of this kind of thing from my neighbors as well with other mortgage companies drawing out the holding of funds We are currently living in a travel trailer.