Consumer complaint received 2026-06-01 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: PENNYMAC LOAN SERVICES, LLC.
State: VA

Complaint narrative:
Company : PennyMac Loan Services , LLC Loan Number : Property Address : VA XXXX Complaint Type : Home equity loan / mortgage servicing / incorrect lien or deed of trust filing/ failure to correct title record I am filing this complaint because PennyMac Loan Services , LLC caused an incorrect deed of trust to be recorded against property that was not supposed to secure my new home equity loan. PennyMacs error has clouded title to a separate XXXX parcel, caused my son and daughter-in-law to lose their construction-to-permanent loan, and has created immediate financial harm. My husband and I own a home parcel consisting of approximately XXXX acres. We also owned a separate adjoining parcel of approximately XXXX acres. The two parcels were originally included in the same deed when we purchased the property in XXXX, even though the XXXX-acre parcel was not intended to be part of the loan collateral. In XXXX, my son and daughter-in-law planned to build a home on the XXXX parcel. I worked to separate that parcel from the loan collateral. After repeated difficulty getting PennyMac to respond, XXXX XXXX became involved and PennyMac eventually processed a partial satisfaction/release of the XXXX-acre parcel from the prior deed of trust. That release was recorded in XXXX XXXX, Virginia. After the XXXX-acre parcel had been released, I refinanced our existing HELOC into a new XXXX XXXX . I made clear to PennyMac that the new XXXX was to be secured only by the XXXX-acre home parcel, and not include the separate XXXX-acre parcel. PennyMac required a new appraisal of the house and XXXXacre parcel. The loan documents available through PennyMac show the property address as the XXXX-acres. When the traveling notary presented documents for signature on XX/XX/XXXX, I specifically reviewed the note because I wanted to confirm that only the home parcel was being used for the loan. The note did not identify the separate XXXX parcel as collateral. PennyMac then sold the XXXX to XXXX XXXX XXXX. on or about XX/XX/XXXX, while PennyMac remained the servicer. Despite that sale, PennyMac caused a deed of trust to be recorded in XXXX XXXX on XX/XX/XXXX. The recorded deed of trust incorrectly lists both the XXXX-acre home parcel and the separate XXXX-acre parcel/PINs. This filing directly contradicts what I requested, and what PennyMacs own customer service representative later said she could see in the loan records. From the dates on the deed of trust, it appears that it was revised on XX/XX/XXXX after we signed the documents on XXXX. The timing of PennyMacs incorrect filing caused serious harm. After the old HELOC was paid off and the XXXXacre parcel had been released, we had our attorney prepare a deed of gift so that my husband and I, along with my son and daughter-in-law, would own the XXXXacre parcel. My son and daughter-in-law then obtained a construction-to-permanent loan to build their home. We signed loan documents on XX/XX/XXXX. On XX/XX/XXXX, the settlement agent notified me that PennyMac had recorded a XXXX against the XXXX parcel on XX/XX/XXXX. Because of PennyMacs incorrect filing, my son and daughter-in-law lost their construction-to-permanent loan. This has caused immediate and foreseeable damages. We will have to pay or reimburse settlement costs and insurance related to the failed loan. My son and daughter-in-law may lose their builder deposit. They will have to restart the loan process later in the year, and the delay is especially damaging because my daughter-in-law has already submitted her retirement from the federal government in reliance on the planned construction and move. I contacted PennyMac after learning of the incorrect Deed of Trust. I could not reach the person who prepared or filed the deed of trust. I contacted the loan officer, who said he could not help because it was handled by another department. I called customer service and spoke with XXXX, who said the records she could see showed only the XXXX parcel on the loan and that she would open a ticket. I also contacted a Penny Mac priority complaint specialist who had previously helped with escrow issues. She said she could not see where the properties had been separated in PennyMacs records and would have to contact another department. I have not received a timely correction, release, or meaningful response. This is not a minor paperwork issue. PennyMacs incorrect deed of trust has clouded title to land that should not secure the XXXX and has already caused the loss of a separate construction loan. PennyMac had actual notice that the XXXX parcel was not intended to secure the new XXXX, the appraisal for the XXXX was only on the house and XXXX parcel, we never received a copy of the documents that we signed from the settlement company, the note on PennyMacs website does not include the XXXX parcel only the XXXX parcel with the house, the release of lien for our old HELOC on both parcels and the new deed for the XXXX parcel had already been recorded before PennyMac recorded the new deed of trust.

Company response to consumer: Closed with explanation