Consumer complaint received 2026-05-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: PLANET HOME LENDING, LLC
State: MO

Complaint narrative:
I am filing this complaint to bring attention to what I believe was an unfair or misleading mortgage-servicing practice that could harm other borrowers. I wired {$140000.00} to Planet Home Lending , LLC for my mortgage loan, loan number XXXX. The wire instructions specifically stated Apply to Principal. This was intended as a principal-only curtailment, not a payoff. After the funds were sent, I was contacted and told Planet Home Lending was treating the payment as a payoff. I clarified that this was incorrect and that the payment was intended to be applied to principal only. I was then told the funds would be returned unless I paid off the remaining balance within approximately 24 hours. Because of that pressure, I sent an additional wire for {$4400.00}. Unlike the first wire, this second wire was marked Apply to Payoff. The different instructions on the two wires show the difference in intent : the first payment was principal-only, and the second payment was only sent after I was told the first payment would be returned unless I completed the payoff. The total wired was {$140000.00}. My concern is that a borrower who makes a large principal-only payment should not be forced into an all-or-nothing payoff decision under threat of having the payment returned. This type of communication could pressure borrowers into sending funds they did not intend to send, or prevent borrowers from making legitimate principal-only payments. I am not primarily seeking personal financial relief. I am filing this complaint because I believe this payment-handling practice should be reviewed so it does not happen to other borrowers. I would like Planet Home Lending to review the handling of this transaction and provide a written explanation addressing the following : 1. Why a wire clearly marked Apply to Principal was treated as a payoff ; 2. Whether Planet Home Lending allows borrowers to make large principal-only payments without paying off the full loan ; 3. The policy, servicing rule, investor requirement, or other basis Planet relied on when it threatened to return the funds unless I paid off the remaining balance ; 4. Whether my loan was current at the time the {$140000.00} principal payment was received ; 5. How Planet trains representatives to handle large principal-only payments ; 6. Whether Planet will review the call handling and communication used in this matter ; 7. What steps Planet will take to ensure borrowers who clearly designate payments as principal-only are not misclassified as payoff borrowers or pressured into sending additional funds unnecessarily. My goal is for Planet Home Lending to review this process and ensure that future borrowers are clearly informed of their options when making a principal-only payment, especially when the payment is large. A principal-only payment should not be automatically treated as a payoff when the borrowers written instructions say otherwise. Attachment 1 shows the first wire request for {$140000.00}, which was marked Apply to Principal. Attachment 2 shows the second wire request for {$4400.00}, which was marked Apply to Payoff. These documents show that the first wire was intended as a principal-only payment, while the second wire was sent only after I was told the first payment would be returned unless I completed the payoff.

Company response to consumer: Closed with explanation