Consumer complaint received 2016-08-22
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: PENNYMAC LOAN SERVICES, LLC. (AZ)

In XXXX successive years, PennyMac made erroneous duplicate payment to different insurers for home insurance. XXXX of the policies had been cancelled, however the insurer continued to request payment from PennyMac without my knowledge or blessing. I only discovered this error when I got XXXX renewal requests, including XXXX for the cancelled policy. 

Upon contacting PennyMac, their representative told me that they needed the insurance company to tell them the policy was cancelled and that I was not able to effect any change on my own behalf. 

Although I strenuously disagreed with this assertion, I asked the old insurance company to contact PennyMac and ensure that the policy was cancelled. Unfortunately, neither PennyMac nor the insurer between them were able to effect the necessary change despite my instructions, and in XXXX the request to pay the premium for the cancelled policy was honored once again. 

Since PennyMac is the custodian of my escrow funds, is responsible for upholding proper accounting practices and had been properly advised of the errors in duplicate payments I reasonably hold them accountable both for the accounting errors that allowed them to pay for XXXX policies at the same time and for failing to honor my instruction not to pay for the cancelled policy. As a result of these XXXX erroneous payment, not only was the Escrow account thrown into chaos, but fees and charges have been levied quite inappropriately. 

I have been working for three years to resolve the fallout from these errors. During this entire time, I have never missed or been late with a payment. PennyMac, however, continues to levy fees and charges as if the account were in default due to some action of mine. 

I was encouraged last year, when I finally made contact with XXXX individual who took ownership of the errors in the Escrow account, audited the account and returned funds that had been overpaid. I was provided a new monthly payment amount which has been the basis for the payments I 've made since XXXX XXXX. 

Incredibly, while the Escrow accounting was being corrected a different branch within PennyMac chose to begin instigating punitive measures. I am still unable to get in touch with anyone who can grasp the simple facts of this situation and perform the same audit on the main account, consistent with their own Escrow audit. 

Since I last replied to PennyMac, there have been no further communications and no action, other than negative credit reporting and an influx of mortgage relief letters. As I have repeatedly stressed, he actual money is no impediment to resolution, the only barrier is being able to determine an accurate standing of the account. 

No-one at PennyMac who answers a phone takes ownership or does what they say they will. I have taken to writing letters so that I have a record of resolution attempts, however after initially asserting infallibility, PennyMac now no longer replies to written communication either. 

In summary, despite continuing to make my full monthly mortgage payments, each month sees PennyMac inventing new fees and charges to apply to my account, now amounting to thousands of dollars, all because they made serious professional errors and have proven themselves incapable of engaging in meaningful, intelligent communication to resolve the problems accurately. PennyMac simply assert that their processes are infallible and insist that I take responsibility for anything they decide to add to the account as a fee, levy or fine