Consumer complaint received 2015-10-02
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: PENNYMAC LOAN SERVICES, LLC. (CO)

My husband and I have a mortgage on our primary, and only, residence. We did not choose PennyMac. In XXXX we had a large car repair and we would not have enough money in our bank account the day our mortgage company draws the monthly payment. We called PennyMac and asked what we should do. The customer service representative advised us to do nothing. PennyMac would draw from our account, and there was nothing PennyMac would do to stop the draw. Since the funds would not be there, no payment would actually occur. The agent said they would make a note that we called and waive the fine. PennyMac said we should then manually pay our mortgage before the end of the grace period midmonth. PennyMac said there were no issues with this plan, and that everything would be fine. It was not. And the fine was not waived. We called our bank and explained our problem, and that our mortgage company was going to try to draw from our account when there would be insufficient funds. The bank said there would be a fine, but they did n't see any other problems. Later that month, but before the end of the grace period, we paid our Mortgage at the PennyMac website using our bank account information. We also paid our banks fine. Then PennyMac sent us a letter that this was the second time we had insufficient funds, and that now they will only accept payment in the form of a money order, cashiers check or XXXX XXXX XXXX XXXX -- whatever that is. Suddenly, the " no problem '' plan is full of problems. PennyMac will not allow us to pay our mortgage using their online system. PennyMac will not allow us to make payments using their automatic draw system. PennyMac will not allow us to make payments over the phone. Now, the only payment PennyMac will consider legal tender is the archaic methods of mailed certified funds. These are expensive, unsecured and inconvenient. These were the problems we were trying to avoid when we first called. The first customer service agent should have known PennyMac 's policies and how these policies affect PennyMac customers. PennyMac should have been able to stop the draw. Now, my husband has called PennyMac multiple times in an effort to reinstate our automatic draw -- this was the required method of payment when PennyMac bought our Mortgage. The first call, the agent that helped my husband said the draw had been reinstated, and that our mortgage would be paid from our bank account. Then the same representative called back several weeks later, on the XXXX when mortgage payments are due, and told XXXX that the draw had actually not been set up and that my husband needed to authorize the draw at the bank. My husband called our bank. The bank was not sure what PennyMac was referring to, or what kind of action the bank would possibly need to take. My husband called PennyMac back and talked to a new agent. This agent explained that the draw had not be reinstated and that it would not be reinstated. This was a surprise to my husband, and he asked for the draw to be reinstated. The agent said the issue would need to be researched for 24 to 72 hours. PennyMac would let us know what they decided, and then they both hung up. But, our mortgage was due now. My husband called PennyMac back again. He talked to a XXXX agent, and requested to speak to the same agent that he had just spoken to, so he could make sure our XXXX mortgage was not late. The agent put him on hold and spoke to the XXXX agent. Then the agents accused my husband of calling back in an attempt to rush the research process, after the XXXX agent had explained that it would take 24 to 72 hours. The XXXX agent was not able to understand that we needed to know how to avoid a late mortgage payment. Also, PennyMac makes it very hard to speak to them : their touchtone answering system asks the same questions multiple times and hangs up on you without a reason.