Consumer complaint received 2026-04-15 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: CA

Complaint narrative:
Date : XX/XX/XXXX Via Certified Mail, Email, and CFPB Portal PennyMac Loan Services , LLC XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX Borrower : XXXX XXXX FORMAL DEMAND FOR ESCROW AUDIT RESPA VIOLATIONS AND NOTICE OF PENDING LITIGATION Dear XXXX, This correspondence serves as a formal demand for a complete escrow audit and constitutes notice of continuing violations of the Real Estate Settlement Procedures Act ( RESPA ), 12 U.S.C. 2601 et seq., and its implementing regulations, including 12 C.F.R. 1024.17. I. IMPROPER ESCROW MANAGEMENT AND FAILURE TO DISCLOSE Noticed Date : On XX/XX/XXXX, PennyMac issued correspondence stating that a supplemental, interim, corrected or new construction tax assessed bill was paid from my escrow account. However, PennyMac has failed to provide : A copy of the alleged tax bill The tax authority issuing the bill The tax year and basis for the assessment Any prior notice of such obligation A complete escrow analysis supporting the charge The subject property was constructed in XX/XX/XXXX. The assertion that a new construction or supplemental tax bill was issued in XXXX XXXX years laterraises serious concerns regarding the accuracy and legitimacy of this charge. Your failure to provide required disclosures and documentation constitutes a violation of RESPA, including 12 C.F.R. 1024.17 ( k ), which requires servicers to properly administer escrow accounts and provide accurate, timely disclosures. II. UNJUSTIFIED ESCROW SHORTAGE AND FINANCIAL HARM PennyMacs actions have resulted in : An unexpected escrow shortage of approximately $ XXXX Increased mortgage payment obligations Financial disruption and hardship This charge was imposed without sufficient explanation, documentation, or opportunity to verify its validity. Such conduct constitutes improper escrow management and has caused actual damages to the borrower. XXXX. PATTERN OF SERVICING FAILURES This escrow issue does not stand alone. It is part of a broader pattern of servicing failures by XXXX, including : Inaccurate and misleading credit reporting ( 120180 days delinquency during forbearance ) Failure to conduct a reasonable investigation following disputes Failure to respond to a valid Notice of Error dated XX/XX/XXXX Delayed correction of derogatory reporting after financial harm occurred This pattern demonstrates systemic noncompliance with federal servicing obligations and raises concerns under federal consumer protection standards, including unfair, deceptive, or abusive acts or practices. IV. FORMAL DEMAND FOR ESCROW AUDIT AND DOCUMENTATION Pursuant to RESPA and Regulation X, PennyMac is hereby required to provide the following within fifteen ( 15 ) days : A complete escrow account history from loan origination to present A detailed escrow analysis reflecting all deposits, disbursements, shortages, and surpluses A copy of the alleged supplemental tax bill, including issuing authority and tax period Proof of payment of the tax bill, including date and amount Documentation explaining why this charge was not anticipated or included in prior escrow analyses All communications and internal records relating to this tax assessment and escrow adjustment V. NOTICE OF RESPA VIOLATIONS AND LEGAL LIABILITY PennyMacs failure to : Properly manage escrow Provide required disclosures Respond to borrower inquiries Investigate and resolve servicing errors constitutes violations of RESPA ( 12 U.S.C. 2605 ; 12 C.F.R. 1024.17 and 1024.35 ). These violations expose XXXX to liability for : Actual damages Statutory damages ( pattern or practice of noncompliance ) Costs and attorneys fees VI. NOTICE OF PENDING LITIGATION Please be advised that if this matter is not fully and satisfactorily resolved within fifteen ( 15 ) days, I will proceed with filing a lawsuit asserting claims including, but not limited to : Violations of RESPA Violations of the Fair Credit Reporting Act ( FCRA ) Negligent servicing and misrepresentation Unfair and deceptive business practices This letter is sent in good faith as a final opportunity to resolve these issues prior to litigation. VII. OPPORTUNITY TO RESOLVE Notwithstanding the above, I remain open to resolving this matter without court intervention. Resolution must include : Correction of all escrow discrepancies Removal or reimbursement of improper charges Written confirmation of accurate account status Consideration of financial harm caused Failure to respond adequately will be interpreted as continued noncompliance and will be addressed accordingly. Sincerely, XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX, CA XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation