Consumer complaint received 2017-01-08
Product: Mortgage — Conventional fixed mortgage
Issue: Credit decision / Underwriting — 
Company: PENNYMAC LOAN SERVICES, LLC. (OR)

In XXXX 2016, I contacted my current mortgage company, PennyMac USA to refinance my condo. While they warned me that it would take 6 weeks to get an appraisal due to the real estate market in my city, they assured me it would take no longer than that. I was upfront with the lender that I was temporarily working away from my primary residence for another 3 months. I still considered the residence my primary home - I was traveling extensively for work, did not establish another residence, and was not paying rent on another unit. I explained that while I was away, my mail was being forwarded to a family member 's home to ensure that it was being received and taken care of timely. Over the course of almost the entire process, I was told that this would not be an issue. 

After two and a half months, at the end of XXXX 2016, an appraisal had still not been completed, and I was informed at that point that the underwriter wanted statements verifying why my mail was going to another location, including submitting utility statements. Because my HOA handled almost all of the utilities, the only utility that I would have paid for was on a freeze. I reactivated the service, and submitted proof to the mortgage company. At this point, I was also required to submit even more documentation, such as my XXXX and income documents for a third or fourth time, as well as updated paystubs and bank statements ( putting the total information they had on me at more than six months ). I was ensured that this would be the last batch of information that they needed, and that as soon as the appraisal had been completed, the refinance would be approved and processed. 

The appraisal was finally ordered, which took almost two weeks for completion. At that point, I was told I needed to submit updated bank statements again, to prove that I had an arbitrary amount of money on hand. I was never told why that number was important, or how it was calculated. Unfortunately, because of the timing of the bank statements, no new statements were available to provide since the end of XXXX 2016. While I was told that would n't be an issue, less than a week later, I was told that the underwriter would not be approving my refinance because she did n't feel that there was sufficient documentation or explanation to prove that this was n't my primary residence. I offered to submit written statements from family members and any documentation that I might have from my job, but I was ignored and the file was closed out. I never heard back from the underwriter, and it took almost two weeks for the loan officer to inform me by phone that the refinance had been rejected. 

The entire process was disastrous and a disgrace. The mortgage company took far too long to review the case, and if they had done so in a timely manner, I would have been able to provide any documentation they requested to show that I traveled extensively for work. At best, the loan officers and processors had placed my file on the backburner, figuring that the appraisal would n't be done for a while, and at worst, they lied to me and purposefully refused to respond to me about the status of the loan. 

PennyMac USA essentially promised me that this refinance would be approved, as well as the financial benefits that would come along with it, such as having the current escrow account closed out and having the first payment pushed back by one month. Because of that, and other changes in my circumstances, PennyMac USA has dealt me a significant financial blow. At this exact moment, I am unable to pursue a refinance with another lender, and even if I were able to do so, the rates have changed significantly - putting the 30-year refinance at anywhere from .25 % to .5 % higher than the rate I was offered.