Consumer complaint received 2026-05-26 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: PENNYMAC LOAN SERVICES, LLC.
State: VA

Complaint narrative:
COMPLAINT AGAINST : PennyMac Loan Services , LLC RE : Systematic Violations of RESPA Regulation X ( 12 CFR 1024.41 ) and Loss Mitigation Interventions for a Confirmed Successor in Interest I, XXXX XXXX ( XXXX XXXX prior to XXXX ), am writing to file a formal complaint against Pennymac for flagrant violations of federal mortgage servicing rules that are actively placing my home at risk of foreclosure. I am the sole deed-holder of the property located at XXXX XXXX XXXX XXXX VA XXXX and a legally confirmed XXXX XXXX XXXX ( XXXX ) on Pennymac Account Number XXXX ( original mortgage holder XXXX XXXX XXXX XXXX XXXX ) recognized by Pennymac on or about XX/XX/XXXX. I also provided my final XXXX court order including Property Settlement Agreement awarding me full ownership, as well as the Quitclaim Deed filed with XXXX XXXX. The mortgage is currently XXXX months delinquent. I have not been allowed to make payments due to the status of the mortgage when I became XXXX and full owner. For the past XXXX months, since XXXX, I have repeatedly attempted to resolve this delinquency by submitting a complete Mortgage Assistance Application to Pennymac 's Loss Mitigation department to secure a retention loan modification. My steady W-2 income is {$120000.00} per year, and the monthly mortgage payment is {$3400.00}. This places my front-end debt-to-income ( DTI ) ratio at XXXX %, demonstrating an undeniable financial capacity to sustain this home independently. Despite my qualified financial profile, Pennymacs XXXX XXXX department has repeatedly refused to evaluate my loss mitigation packet. Instead, they have continually redirected me to the XXXX XXXX Department. The XXXX XXXX ( including XXXX XXXX XXXX ) and the XXXX XXXX Department have explicitly told me that I will be denied for an assumption because my credit score is below XXXX. My credit score is under XXXX due to the severe financial hardship sustained during a prolonged XXXX from my XXXX XXXX who was unable to attend to financial obligations leading up to the divorce due to mental health. This constitutes a severe regulatory violation. Under 12 CFR 1024.30 and 1024.41, as a confirmed XXXX XXXX XXXX, I am legally entitled to the same loss mitigation protections as the original borrower. Pennymac is actively " dual-tracking '' and denying me access to foreclosure prevention by forcing me as successor of a property with a delinquent mortgage into a retail purchase assumption track bound by a XXXX credit overlay. I have been sent back and forth between these departments since XXXX. I have provided every document they have asked for and stated that I am a confirmed XXXX seeking LOSS MITIGATION with no credit score overlay. Per Fannie Mae Servicing Guide XXXX, Pennymac is required to evaluate a delinquent transferee for a Simultaneous Loan Modification and Assumption Workout Option, which waives standard retail credit score requirements in favor of income-capacity evaluation. By running me in a XXXX-day department loop since I became XXXX, received ownership of the property via XXXX XXXX XXXX, Pennymac has misdirected me XXXX delayed my assistance, and jeopardized my housing security. My home has been placed back in a foreclosure status as of XX/XX/XXXX because I have not submitted my credit score, which I fear will result in a denial given Assumptions has stated as such. I demand that Pennymac immediately stop foreclosure actions, assign a dedicated Single Point of Contact ( SPOC ) in Loss Mitigation, and manually underwrite my complete financial packet for a simultaneous modification and assumption based strictly on my W-2 income. I have attached my most recent pay stub, XXXX W2, Quitclaim Deed with certification of record of filing with XXXX XXXX XXXX XXXX with the property in my name, signed copy of Property Settlement Agreement. I also have the Final Divorce Decree signed by XXXX XX/XX/XXXX if needed. XXXX XXXX ( formerly XXXX prior to XXXX )

Company response to consumer: Closed with explanation