Consumer complaint received 2025-06-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: PENTAGON FEDERAL CREDIT UNION
State: GA

Complaint narrative:
In XX/XX/XXXX, we refinanced our home loan with PenFed Credit Union, securing a 2.65 % interest rate on a XXXX loan with a maturity date of XX/XX/XXXX. We signed the closing documents on XX/XX/XXXX. These closing dates confirmed a XXXX loan and set forth " estimated '' monthly payment of principal, interest, and escrow. The company informed us of the amount due at closing, which we made manually, and we then set up XXXX on the account. My husband called PenFed in late XXXX to confirm the statement amount of {$4100.00} that was being automatically withdrawn from our bank account was accurate and included escrow, as the monthly P & I estimate from our closing disclosure was roughly that amount ( {$4100.00} ) and he was concerned that the bank was not accounting for the escrow, which had been estimated at approximately {$1500.00} per month. The PenFed representative reassured him that the statement and amount was accurate and accounted for escrow, and that the closing disclosure amounts were estimates and subject to change. PenFed continued to issue statements for this amount, with changes, including increases, from time to time as the escrow amount varied. 

On XX/XX/XXXX, I logged into our online account to calculate how much equity we currently had in our home. I was shocked to see that the remaining principal was much higher than I had anticipated, and after delving deep into the documents and making my own calculations, I was horrified to discover that the bank had been undercharging us, and had calculated our payments on a XXXX amortization schedule instead of 15 years. Our statement continued to list an XX/XX/XXXX maturity date, however, and this is also recorded on our deed. I immediately called XXXX to notify them and to request an explanation. We were now roughly {$70000.00} behind where we should have been in paying down principal, and also had paid excess interest and obviously would not be paid off by the XXXX maturity date if we continued to pay on the same schedule. 

I was told by the PenFed representative during that first phone call ( XX/XX/XXXX at XXXX, lasting for XXXX minutes ) that I was probably mistaken, but I insisted that I had done the math and there was an error. The representative promised to look into the matter, but noted that it might take some time to get an answer. I requested that I kindly receive an update before XX/XX/XXXX, when our next loan payment was due. 

I contacted PenFed again on XX/XX/XXXX, both by submitting a written complaint via email and by phone at XXXX ( XXXX minute duration ). I spoke with a different representative who said it was too soon for an update. I contact PenFed again on XX/XX/XXXX, at XXXX XXXX  This was a lengthier conversation, XXXX minutes long, and the representative listened more intently, seemed to be making notes, and said that the matter would need to be escalated to another department. 

On XX/XX/XXXX, the monthly payment due date for our loan, I called PenFed to request that they begin charging us the amount that we should have been paying, but I was told the matter was still being " investigated '' and that I could make additional payments to the principal if I wanted, or even hold of on paying at all while the bank figured things out. I declined to do that, fearing falling into default. We paid the amount on the statement and waited for further instructions. 

I realized around this time that in order to trigger formal obligations for the company to respond, I should send XXXX Fed a written Notice of XXXX to its designated address. I sent that Notice on XX/XX/XXXX, and received a letter from XXXX confirming receipt of the Notice on or about XX/XX/XXXX. 

After additional telephone calls with XXXX ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX ), we received a call from a newly assigned agent, XXXX. She informed us that the " investigation '' had been completed, that the bank had made an error and indeed had sent us inaccurate statements and undercharged us for a period of XXXX and a half years. XXXX informed us that the loan was now in loss mitigation, and asked us if we would consider an agreement in which our loan would be modified to a XXXX loan starting on XX/XX/XXXX, with a monthly payment of {$5700.00}, consisting of {$3700.00} in principal and interest and {$1900.00}. 





and are still awaiting a resolution. 
was correct, and that we were paying sufficient escrow, because the amount was slightly lower than the estimated payment from the closing documents. XXXX confirmed the amount was accurate, and we continued to receive statements On XX/XX/XXXX, I accessed my online mortgage account to see how much equity we had in our house. I noticed that the outstanding principal amount seemed very high,, we realized that XXXX has been undercharging us on our monthly mortgage payments, mistakenly basing our P & I payments on a XXXX rather than the XXXX schedule agreed to in our closing documents, ever since we refinanced our mortgage with PenFed in XXXX. The loan matures in XX/XX/XXXX, but based on the amount PenFed has been charging us, we realized that our loan will not be paid off at the proper time. 

The XXXX & I estimated payment amount in our closing documents is approximately {$1500.00} more than the XXXX & I amount PenFed has been charging us on a monthly basis. Please rectify this situation immediately by beginning to charge us the proper monthly amount, and contact us to discuss how to address the unpaid principal that should previously have been charged to us, as well as the excess interest we have paid to XXXX due in part or in whole, to the companys own negligence. 

Upon realizing the error, we immediately notified XXXX via telephone on Monday, XX/XX/XXXX. We followed up several times with PenFed by telephone on XX/XX/XXXX, and XX/XX/XXXX, and then sent the Company a Notice of Error on XX/XX/XXXX. They acknowledged receipt of the Notice via return mail that we received on our about XX/XX/XXXX. 

After numerous additional telephone calls with PenFed ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX ), we received a call from the newly assigned agent to our case, XXXX. She informed us that the loan was now in loss mitigation, and asked us if we would consider an agreement in which our loan would be modified to a XXXX loan starting on XX/XX/XXXX, with a monthly payment of {$5700.00}, consisting of {$3700.00} in principal and interest and {$1900.00} in taxes and insurance. Eager to resolve the matter once and for all, I agreed in principle, subject obviously to my review of the document, and asked that the documents be sent as soon as possible. 

On XX/XX/XXXX, my husband called me to inform me that our monthly mortgage payment had not been withdrawn from our XXXX account the day before, XX/XX/XXXX, the monthly payment due date. I logged into our PenFed account, and discovered that without any notice to us, the company had XXXX our autopay and online payment capabilities entirely. 

Also on XX/XX/XXXX, we finally received the loan modification documents from XXXX via XXXX overnight delivery. The cover letter was dated XX/XX/XXXX, but the documents had been sent on XX/XX/XXXX. PenFed requested that we sign, notarize, and return the documents within 15 days. I noticed right away that while the agreement generally acknowledged the terms to which we had agreed in principle, it assumed that the XXXX payment would not be paid, and that the existing principal balance on XX/XX/XXXX, would be {$550000.00}, which was what it had been on XX/XX/XXXX. We never agreed not to pay in XXXX ; indeed, our original loan terms were still in effect and our account still showed {$4900.00} due XX/XX/XXXX. The proposed loan modification also provided, without explanation, for the amount of {$7000.00} to be added to our existing principal balance, resulting in a new unpaid principal balance of {$560000.00}. 

On XX/XX/XXXX, that same day, I called XXXX at PenFed to ( 1 ) request an explanation for the disabling, without notice, of our autopay and online payment options ; ( XXXX ) make a payment on our account so that we would not be in default; and ( XXXX ) obtain an explanation for the loan modification documents ( a ) omitting our XXXX payment and ( b ) adding {$7000.00} to be added to our principal balance. XXXX responded that because the loan was now being overseen by their XXXX XXXX Department, online payments would no longer be accepted. She did not have any answers, and said she would reach out to the underwriting team for an explanation and call me back later that day. She did not call back. I was able to make a full monthly payment over the phone, however. Our online account states that the payment was " applied '' effective XX/XX/XXXX, well within the XXXX grace period. However, that payment still has not been reflected in our principal balance. I called XXXX at XXXX again today, XX/XX/XXXX, to inquire about the failure of the payment to reflect in the balance, and she said it would take longer because the loan was in " loss mitigation. '' She said she still did not have any answers about the omission of the XXXX payment from the modification documents, or about the addition of {$7000.00} to the principal. I informed XXXX that PenFed 's negligence in the handling of our loan and in responding to our complaint was unacceptable and that I would be filing a complaint with the CFPB.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with monetary relief