Consumer complaint received 2018-12-12 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC.
State: VA

Complaint narrative:
I received an escrow shortfall statement in XXXX from PennyMac,  my mortgage company, stating that my escrow balance was short by {$440.00} and should be paid by XXXX XXXX. On XXXX XXXX I submitted via my bank account bill pay an escrow payment in the amount of {$450.00}, with a note that the payment was to be applied to escrow. The bank mistakenly applied the payment to my principal. In late XXXX I asked the mortgage company, via my electronic messaging account and a separate phone call, that the payment should be applied to my escrow and not to my principal, and that I wanted to make sure the escrow payment was properly credited so my account would not be penalized. I then paid the amount the mortgage company estimated I should pay if the escrow balance was paid in full ( XXXX ). In the meantime, I checked my account online and saw that the escrow balance was level and the payment had appeared to be corrected. 

On XXXX XXXX, I received a letter from PennyMac dated XXXX XXXX and stating that I owed another {$37.00} on my mortgage payment, making the amount due the same ( XXXX ) as if I had not paid my escrow balance. On XXXX XXXX, I called PennyMac and was told that " the system '' had kicked out my escrow payment because it was more than the amount owed and that my payment would be increasing to {$1700.00} ( despite no notice of this new payment ) because the local property tax payment ( which was made while my escrow payment was mischaracterized as principal reduction ) further depleted my escrow account. When I asked how I could get the monthly mortgage payment down further, I was told I could submit a {$140.00} payment to escrow on the spot ( I said I could pay but would do it later ). 

Referring to the XXXX XXXX letter, I asked if PennyMac would guarantee that I would not receive a late fee because I had paid my escrow payment and mortgage on time. I was told that that if I did not pay the {$37.00} PennyMac had requested in its XXXX XXXX letter ( which is in error because the total mortgage payment of {$1700.00} STILL assumes I did NOT pay the escrow balance ), I would be risking late fees and negative marks on my credit report, although I have paid all amounts on time. 

I told the representative I would pay and then file this complaint with CFPB because I was tired of PennyMac claiming " the system '' had made mistakes but would take no responsibility for mischaracterizing my payment ; ( 2 ) I was tired of being made to feel I had erred when I sent in my escrow payment and that everything they did was a result of my error ; ( 3 ) that they could not backdate my account to show the escrow payment when it was actually made ; and ( 4 ) that I was at risk of further penalties when I had paid all amounts on time.

PennyMac refuses to properly credit my escrow payment, saying it can not backdate the payment, although it was made in advance of the XXXX XXXX due date. It also mistakenly requests additional funds for my mortgage payment, despite my paying the mortgage and escrow payments on time. 

I request that that PennyMac : ( 1 ) properly credit the escrow payment to XXXX XXXX ; ( 2 ) adjust ALL payments and credits from XXXX XXXX to the present accordingly ; and ( 3 ) credit any overpayment of my mortgage to my principal.

I further request a written apology from PennyMac for the inconvenience they have imposed upon me despite my paying the mortgage and escrow shortfall on time. This chain of events is unacceptable. I have NEVER been late with my mortgage payments and it is ABSOLUTELY UNPROFESSIONAL that PennyMac would threaten me with late fees and negative credit marks when I am contacting THEM in an effort to correct my account. I DO NOT ACCEPT THIS UNPROFESSIONAL BEHAVIOR FROM PENNYMAC, and as a result of this, I can no longer trust PennyMac in my dealings with them.

Company response to consumer: Closed with explanation