Consumer complaint received 2026-05-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: MD

Complaint narrative:
I have a non-escrow mortgage loan serviced by PennyMac. This complaint concerns the improper establishment and continued maintenance of an escrow account related to property taxes, despite the underlying duplicate payment never being negotiated or applied. I independently manage and pay my property taxes directly. In XXXX, I temporarily delayed payment while awaiting application of a newly implemented public safety tax credit from XXXX XXXX XXXX, XXXX, which significantly reduced the amount owed. I submitted payment directly to the county tax office, and my payment was accepted and cleared on XX/XX/year>, satisfying the tax obligation in full. PennyMac subsequently attempted to issue a duplicate payment to the county ; however, because the taxes had already been satisfied, the county did not negotiate or apply PennyMacs payment and returned the check with written confirmation that the taxes had already been paid. After the payment attempt, PennyMac also sent correspondence stating that the matter was under investigation, further confirming that the issue had not been finalized and remained under review. On XX/XX/year>, a PennyMac supervisor named XXXX instructed me to destroy the returned check because she stated a stop payment was being placed on it. During that conversation, she advised me that once the stop payment was completed, the escrow advance would be reversed to reflect that no lender advance existed, after which the escrow account would be removed. As of XX/XX/year>, this has still not been corrected. Despite numerous phone calls and repeated requests for assistance, I continue receiving inconsistent information and no meaningful resolution. I have not received promised callbacks, and PennyMac continues maintaining escrow-related account treatment despite : XXXX. The taxes being paid directly by me, XXXX. PennyMacs payment never being negotiated, 3. The county confirming the duplicate payment was not applied, 4. PennyMac acknowledging the matter was under investigation, and 5. PennyMac representing that a stop payment and escrow reversal would occur. PennyMac representatives have recently stated they are still attempting to confirm the status of the tax account with the county, despite the tax payment status being publicly available online and despite PennyMac being able to verify internally that its own check was never negotiated. Additionally, I experienced a decline in my credit score after PennyMac added the escrow-related balance to my account. The reported increase appears to be tied to the unresolved escrow and tax advance issue, despite the duplicate payment never being negotiated or applied. I am requesting : 1. Immediate removal of the escrow account, 2. Reversal of all escrow-related payment adjustments, 3. Correction of servicing and accounting records to reflect that no lender tax advance remains outstanding, 4. Correction of any inaccurate credit or account reporting related to this matter, 5. Written confirmation that this issue has been fully resolved, and 6. Assurance that no negative servicing consequences resulted from this matter. Additional supporting documentation, including the returned PennyMac check and county correspondence confirming that PennyMacs payment was not negotiated or applied, is available and can be provided upon request.

Company response to consumer: Closed with non-monetary relief