Consumer complaint received 2016-06-22
Product: Mortgage — VA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: PENNYMAC LOAN SERVICES, LLC. (WA)

I was one month behind on my VA Mortgage in XXXX XXXX. My mortgage servicing co, PennyMac Loan Services offered to do a modification of my mortgage. This modification would reduce my payment and give me a 2 month hiatus in mortgage payments to get my house in order. I asked how this period would be reported to the Credit Bureaus. They advised it would be reported as my making partial payments. As a retired Commercial Banker, I did n't think this reflected the true status of the modification, as I would always be making full payments at the new reduced amount but I had no choice in the matter. I started this program in XXXX XXXX, with XXXX and XXXX being the no payment period which they called a " Forbearance ''. My three trial payments Started in XXXX to XXXX XXXX. After that I continued making payments while my Modification Agreement was sent and returned. This whole process took three months and my first regular payment started in XXXX XXXX. In XXXX XXXX I received an Alert from my XXXX service that my mortgage payment was reported as delinquent. I emailed XXXX XXXX my assigned contact at PennyMac and he told me in a email response that I had not yet made my 1st Trial Payment and as soon as I did the payments would be reported as " Partial payments being made ''. The first payment had been scheduled by me for XXXX/XXXX/XXXX and paid at that time.This was because the partial payments could be made any time during the month and it was more convenient for me to pay them during the trial period when we received our Social Security checks around the XXXX and XXXX. All payments after the trial payments were made before the XXXX. Around XXXX XXXX I was in the initial stages of applying for a VA Cash Out Refinance so I could consolidate my short term revolving debt incurred by the repairs we were doing on the home we purchased in XXXX XXXX. Unfortunately, these expense grew incrementally over a years time and we found ourselves overextended. The gentleman I was working with called me and told me there was nothing he could do as my Credit Bureau Reports showed late mortgage payments over the Modification period of 60 to 120 days delinquent. ( See Exhibit XXXX in package I included ). He further told me no lender could make any time of loan to me with this record. As a XXXX I agreed. After that I sent my complaint with a full package of information to the XXXX Credit Bureau asking them to contact PennyMac and correct the reporting on my account. 

Page XXXX CFPB Complaint Shortly thereafter I received from XXXX a copy of my PennyMac credit report with no changes made and no explanation. This was obviously a waste of time. I then contacted the PennyMac Customer Service people on XXXX/XXXX/XXXX ( Exhibit XXXX ). They were actually quite helpful. They contacted XXXX XXXX, my primary contact at PennyMac and he confirmed to them that I was correct about the Credit Bureau Reporting. They also CC 'd their Supervisors on this and I received the impression the reporting would be fixed. They made a request to the PennyMac Dispute Department to correct the reporting and were told after a few days that the Dispute Department was leaving the reporting as is. I next contacted the U. S. Department of Veteran Affairs. They sent an email to PennyMac inquiring about my complaint on XXXX/XXXX/XXXX. As of XXXX/XXXX/XXXX, they never received an answer from PennyMac. I now am contacting the CFPB as my local Banker advised me that what PennyMac is doing is a violation of CFBB regulations. In addition we are struggling with Bill Payments, our own fault and we badly need to do Debt Consolidation Loan, which is presently impossible.