Consumer complaint received 2026-04-10 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: GA

Complaint narrative:
I am filing this complaint due to ongoing unresolved issues and PennyMac Loan Services, LLCs continued failure to comply with its servicing obligations and prior acknowledgments regarding funds owed to me. This matter is not isolated. I have filed multiple complaints through the Consumer Financial Protection Bureau regarding similar issues with this servicer. For reference, my most recent complaint ( XXXX XXXX. XXXX ), submitted on XX/XX/year>, is part of a series of complaints I have filed since XX/XX/year>. In total, I have submitted five complaints regarding the same unresolved issues. Despite these repeated complaints, the company has consistently failed to provide a clear, complete, and actionable resolution. Instead, they have responded with vague, indirect, and incomplete explanations that do not address the core issues raised. This repeated need to escalate demonstrates a pattern of deficient servicing practices, lack of transparency, and negligent handling of my funds. In prior correspondence DATED XX/XX/year> PennyMac acknowledged that the following amounts are owed to me : {$300.00} related to a State Farm insurance payment that I paid out of pocket, which should have been covered through escrow. {$750.00}, which was separately identified and acknowledged as an outstanding balance owed to me. I explicitly requested that both amounts be issued via paper check mailed directly to my address for proper documentation and traceability. However, PennyMac has failed to comply. In its response da, the company introduced a new and inconsistent position regarding the {$750.00}, claiming that the funds were credited to my escrow account and/or that a payment had been issued and subsequently returned. I do not accept this claim. I have never received any such payment. My address on file is correct, and there is no valid reason for any alleged return. PennyMac has failed to provide any supporting documentation, including proof of mailing, tracking information, delivery confirmation, or evidence of return. Without such documentation, this claim is unsubstantiated and does not constitute fulfillment of their obligation. If a payment was in fact issued and returned, the company must provide verifiable evidence and immediately reissue the payment. Furthermore, even if a check had been issued and returned, PennyMacs unilateral decision to apply those funds to my escrow account is unacceptable and improper. Once the company has acknowledged that the funds are owed directly to me, those funds must be disbursed to me, not retained, redirected, or internally reallocated at the companys discretion. Any alleged return of a mailed check does not extinguish their obligation to pay me directly. Instead, they are required to promptly reissue the payment. Crediting funds to an escrow account does not constitute a disbursement to the borrower and does not satisfy the obligation owed to me. Under the Real Estate Settlement Procedures Act ( RESPA ), 12 U.S.C. 2605, and its implementing regulation, Regulation X ( 12 C.F.R. Part 1024 ), mortgage servicers are required to properly manage escrow accounts, accurately account for borrower funds, and promptly return any surplus or funds owed directly to the borrower. PennyMacs actionscrediting funds internally to escrow instead of issuing payment, failing to provide clear disbursement details, and offering inconsistent explanationsare inconsistent with these obligations and may constitute improper handling of escrow funds. With respect to the {$300.00}, PennyMac has also failed to provide any clear commitment to reimburse me. Their response merely references the underlying insurance payment but does not confirm payment to me, does not provide a disbursement date, and does not specify any method of reimbursement. This is unacceptable. These funds were paid directly out of my personal pocket due to a servicing failure. They must be reimbursed to me directly and must not be treated as an escrow adjustment, internal credit, or any form of indirect accounting entry. Additionally, PennyMac continues to attempt to require that I contact them by phone in order to request payment. I will not do so. Their telephone system is not a reliable or effective communication channel and creates an unnecessary burden on the consumer. Due to the companys repeated failures to properly address my concerns through standard customer service channels, I am using the CFPB complaint process as the only effective and documented means to obtain a resolution and enforce accountability. I require that all communication and resolution be handled in writing through this platform. At this stage, the issue is no longer whether the funds are owed, but PennyMacs failure to execute payment after acknowledgment and its continued use of vague, inconsistent, and incomplete responses. I will not accept further vague, confusing, or evasive responses, nor justifications that are inconsistent with the facts, particularly when the company has already acknowledged that these amounts are owed. To date, I have received no payment. Accordingly, I demand the following : Immediate disbursement of {$300.00} as a reimbursement, issued via check mailed directly to my address Immediate disbursement of {$750.00} previously acknowledged as owed, also via check mailed directly to my address Written confirmation of both disbursements, including exact mailing dates Verifiable proof of any prior alleged issuance or return of payment, if such claim is maintained Written confirmation that neither amount will be treated as an escrow adjustment, internal credit, or indirect accounting entry A clear, specific, and complete written response addressing each issue raised All communication and resolution to be provided in writing through this CFPB channel Finally, I must state that it is extremely exhausting and unacceptable to continue receiving responses that go in circles and fail to directly address my very specific and clearly stated concerns. I have filed five complaints since XX/XX/year>, including XXXX XXXX. XXXX, and in each case, the company has failed to provide a direct and effective resolution. I do not accept this pattern of behavior. My concerns are clear, specific, and limited to the proper disbursement of funds that have already been acknowledged as owed. I expect direct, concise, and fact-based responses addressing exactly what I am requesting. I can not accept that the company continues to avoid straightforward resolution and instead repeatedly provides responses that do not address the core issues. I am demanding immediate and full resolution of this matter without further delay.

Company response to consumer: Closed with explanation