Consumer complaint received 2026-03-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: PENNYMAC LOAN SERVICES, LLC.
State: NV

Complaint narrative:
In early XX/XX/2025, I contacted my mortgage servicer, PennyMac Loan Services, regarding transitioning from a forbearance to a loan modification. During the week of XX/XX/XXXX, I spoke with four separate PennyMac representatives to obtain clear and accurate information regarding the credit impact of proceeding with loss mitigation. On my first call, the representative provided fast-paced, scripted information that was difficult to understand. I repeatedly asked for clarification. I then asked a direct question : whether I had until XX/XX/XXXX to pay the arrears amount of {$9100.00} and whether my account would not be reported late to the credit bureaus before that date. The representative confirmed that was correct. To ensure accuracy, I called back the same day and spoke with another representative, who again confirmed that my credit would not be impacted and that I had until XX/XX/XXXX to resolve the arrears. I confirmed this same information with two additional representatives, for a total of four agents providing consistent assurances. During this period, I continued making monthly payments and was not more than 30 days delinquent. Although a compliance script was read during these calls, the representatives simultaneously provided assurances that directly conflicted with that script. Based on repeated confirmations that I was safe until XX/XX/XXXX, I reasonably relied on those representations in proceeding with the modification process. Despite these assurances, negative credit reporting occurred while I was actively engaged in the loss mitigation process. On XX/XX/XXXX, I submitted a written request to PennyMac asking that the negative reporting be corrected due to the conflicting and misleading statements. I did not receive a response. In XX/XX/2025, I submitted formal disputes to the credit reporting agencies requesting review and removal of the negative reporting. Those disputes were reviewed and denied, and no remediation was provided. I believe this conduct raises concerns under the Real Estate Settlement Procedures Act ( 12 U.S.C. 2605 ) and Regulation X ( 12 C.F.R. Part 1024 ), which require mortgage servicers to provide accurate information, maintain policies and procedures reasonably designed to ensure borrowers are not provided misleading information ( 1024.38 ), and properly administer loss mitigation communications ( 1024.41 ). Providing assurances that induced reliance, while failing to clearly disclose that delinquency reporting would occur during the review process, reflects inadequate servicing procedures and materially misleading communication. I am requesting that PennyMac correct the credit reporting and that the CFPB review whether PennyMacs loss mitigation communication practices and agent training comply with RESPA and Regulation X requirements.

Company response to consumer: Closed with explanation