Consumer complaint received 02/15/2018 about Money transfer, virtual currency, or money service (Domestic (US) money transfer) with PENNYMAC LOAN SERVICES, LLC. (GA).
Issue: Fraud or scam

Complaint: We suffered water damage to our home in XX/XX/XXXX. The insurance company paid off the claim and sent a check payable to XXXX XXXX XXXX XXXX ( the contractor they referred to us to remove and re-install hardwood floors0 PennyMac our mortgage company and ourselves. They asked us to have it endorsed by XXXX XXXX, sign it ourselves and send it to PennyMac. 

PennyMac re-issued the check payable to XXXX XXXX XXXX XXXX and our selves and advised it to send it to XXXX XXXX, have them endorse it and send it back to us so we could make progress payments. XXXX XXXX refused to endorse the check and send it back to us. They held the check from XX/XX/2018 while we discussed remedial work required on the floors they installed and several thousand dollars damage to our furniture and household goods that was damaged when they moved the furniture out of our home, into storage and back to our home. 

XXXX XXXX subsequently cashed the check XX/XX/XXXX, without our signature and when we found this out PennyMac was going to send us copies of the front and back of the cashed check and conduct a fraud investigation. 

PennyMac later refused to conduct the fraud investigation into this check that was illegally cashed. The following is a draft of a letter that I have prepared to send to XXXX XXXX XXXX, Chief Executive Officer, XXXX XXXX XXXX, outlining PennyMac 's refusal to conduct this investigation and it includes names of PennyMac personnel that we discussed this issue with and dates of various conversations. 


XX/XX/XXXX XXXX XXXX XXXX XXXX President and Chief Executive Officer XXXX XXXX XXXX Corporate headquarters XXXX XXXX XXXX XXXX XXXX, CA XXXX XXXX XXXX, Please refer to the attached copy of check # XXXX. 

We suffered water damage to our home in XX/XX/XXXX and the insurance company paid off the claim in the amount of {$26000.00}, referenced in the attached check and sent it to us, payable to PennyMac and ourselves. We endorsed the check and sent it to PennyMac. 

PennyMac re-issued the check payable to XXXX XXXX XXXX. XXXX XXXX XXXX XXXX XXXX XXXX and advised us to send the check to XXXX XXXX, which I did XX/XX/XXXX, to have them endorse it and send it back to us so we could make progress payments. 

XXXX XXXX refused to endorse the check and send it back to us, choosing instead to hold it and subsequently cashed it XX/XX/XXXX,  without our endorsement. 

We became aware of this during a conversation with XXXX XXXX XXXX with your organization, XX/XX/XXXX. We requested a copy of the front and back of the check and XXXX XXXX also advised us that PennyMac would research further steps, including a fraud investigation and this review should be completed by Tuesday XX/XX/XXXX. 

We followed up with XXXX XXXX XX/XX/XXXX and was advised that our request for a copy of the front and back of the check had been approved and that PennyMac was still reviewing the fraud aspect. In addition, we were told PennyMac would send us a form that we could take to XXXX XXXX XXXX to obtain further information on the check. 

We followed up again XX/XX/XXXX and spoke with XXXX XXXX XXXX, Escalation Specialist, and she advised that she would have a manager call us within 24 t0 48 hours and she confirmed that a copy of the front and back of the check was requested from home office and mailed to us XX/XX/XXXX. 

To date a copy of that check has not been received, nor has the form for us to take to XXXX  XXXX XXXX to obtain more information on the cashed check. Have we been misinformed by PennyMac regarding mailing a copy of the cashed check and the form to take to XXXX XXXX XXXX? PennyMac claim to record theses calls so, so they can very easily confirm this conversation and verify who provided us with this information. 

We followed up further XX/XX/XXXX and spoke with XXXX XXXX XXXX. XXXX XXXX subsequently left us a voice mail message later that day advising ; she received a response back that PennyMac would not be involved in any investigation on the claim check # XXXX in the amount of {$26000.00} that was cashed by XXXX XXXX without our endorsement. 
We ( my wife and I ) may choose to get the police involved because we did not endorse the check that was payable to the contractor and ourselves. 

Suggested that we contact the insurance company and start with them to find out where we can proceed going forward regarding our claim funds. ( my wife and I do not understand this suggestion since our insurance company paid off the claim and the check was subsequently sent to PennyMac. PennyMac re-issued the check payable to XXXX XXXX and ourselves ). 

It is difficult to understand why PennyMac is refusing to conduct a fraud investigation into a check drawn on your XXXX XXXX XXXX account, payable to one of your mortgagors and XXXX XXXX, that was not endorsed by your mortgagor and illegally cashed by XXXX XXXX. ( This certainly appears to be a criminal matter ). 

Also, XXXX XXXX knew that there were funds in the check that should be paid to the Ishmaels and was, and is, aware that remedial work is required on the floors they installed and several thousand dollars damage was done to household goods during the move-out, move-in of our furniture, that needs to be made whole. 

Since PennyMac has refused to investigate criminal activity associated with the fraudulently cashed check, does this suggest that PennyMac may be complicate in this matter? 

In addition, we are locked out of our PennyMac account and we were told by XXXX XXXX that we were locked out because of the fraud investigation. However, since PennyMac has refused to conduct a fraud investigation, would you please let us know why we are still locked out of our account? 

XXXX XXXX, I would appreciate your review of this matter and hearing from you further on this? In addition, please let us know if this is a criminal matter that we should refer to the police for investigation, since PennyMac has refused to conduct a fraud investigation into the illegal cashing of this check XXXX XXXX, attached? 



Copy : Consumer Financial Protection Bureau XXXX XXXX XXXX   PennyMac XXXX XXXX XXXX ( via fax ) XXXX XXXX PennyMac ( via fax ) XXXX XXXX PennyMac ( via fax ) XXXX XXXX PennyMac ( via fax ) XXXX XXXX PennyMac ( via fax )

Company response to consumer: Closed with explanation