Consumer complaint received 2025-11-17 00:00:00
Product: Mortgage — FHA 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: MD

Complaint narrative:
CFPB COMPLAINT TEXT FOR ONLINE PORTAL Company : PennyMac Loan Services , LLC Product : Mortgage Issue : Servicing, loss mitigation, transfer notices, and credit reporting Dates : XXXX to XXXX Facts I hold an FHA mortgage serviced by PennyMac Loan Services , LLC . On XXXX, PennyMac approved a Special Forbearance Plan. The written plan states they would report my loan as current and in a forbearance plan through XXXX as long as I met the terms. 

On XXXX, PennyMac issued a letter marking the Special Forbearance Plan complete and instructing me to resume the regular monthly payment. On XXXX, PennyMac sent a XXXX  letter stating my loss mitigation application was complete and that they would send a loan modification offer. 

Before and during this period I notified PennyMac of a divorce court order. The order bars either spouse from signing any document that extends the loan term. I also reported reduced income and medical limits on my work hours.

The forbearance required monthly check in calls. PennyMac later claimed I failed those check ins. That statement is false. My own call log and PennyMacs notes and recordings show that I called and completed each monthly check in within the required time. At least XXXX PennyMac employee confirmed this to me on the phone. 

Despite the written forbearance plan and my compliance, PennyMac furnished about XXXX  months of late payment codes to the credit bureaus. Before this, my scores were about XXXX. After the late codes, my scores dropped into the low XXXX. My credit card limits were reduced. Some long term accounts were closed or restricted. 

When I questioned the late reporting, PennyMac told me the late marks would be removed if I signed a modification agreement. I refused to sign any modification that extends the loan term because of the court order. In XX/XX/XXXX PennyMac sent a letter stating they corrected XXXX late report, but they did not address the full pattern of misreporting. 

On XXXX, I sent PennyMac a written complaint and servicing request. I asked for a full explanation of how they handled the forbearance, credit reporting, and loss mitigation review. On XXXX, PennyMac sent an acknowledgement letter that they received my request. They did not provide the full RESPA response or the records I requested within the required time. 

I sent an additional written information request on XXXX. PennyMac again did not provide the promised servicing records, call recordings, or XXXX XXXX data. 

On recent calls I received conflicting statements about a transfer of my loan. XXXX supervisor refused to take my regular monthly payment and said they could not accept payments because of an upcoming transfer. Another agent told me goodbye letters are sent XXXX  days before a transfer. A different representative said transfer letters would arrive soon. Only after XXXX escalations did a representative accept my payment over the phone. As of today I have not received any written transfer notice from PennyMac or from a new servicer, only verbal statements. 

My XX/XX/XXXX mortgage statement shows that a XXXX dollar payment was placed in suspense instead of being applied to the amount PennyMac told me was due under the court order. This creates a risk of wrongful default while they are also furnishing late data. 

I also requested, by certified mail, copies of the financial analysis PennyMac used to select the modification they offered. PennyMac has not provided this analysis or any clear explanation of why they placed me in the current plan instead of other available FHA options. 

I believe PennyMac has violated RESPA, FCRA, and CFPB mortgage servicing rules. They misrepresented my performance on the forbearance plan, failed to honor the credit reporting language in their own letters, used negative credit reporting to pressure me to sign a modification that conflicts with a court order, failed to provide timely and complete responses to my written servicing requests, mishandled payments during a planned transfer, and failed to send clear written transfer notices.

Company response to consumer: Closed with explanation