Consumer complaint received 2020-11-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: PENNYMAC LOAN SERVICES, LLC.
State: CA

Complaint narrative:
Entered forbearance program on ~XX/XX/2020 for an approved 3 months ( 90 days ). We explicitly stated at onset that if the only solution upon emergence from forbearance was going to increase my mortgage payments, I wasn't interested in using the program. I was ASSURED there would be other options. 

After the first " forbearance '' approved payment statements were issued, we contacted Pennymac immediately. I had concerns regarding data on the statement ( s ) during the forbearance timeframe ( amounts stated past due, threatening letters, etc ). I repeatedly called proactively, and each time I was told " all is ok '', it's automatic, and once you emerge from the forbearance period, all will be corrected. This matter continued to grow in dollars they claimed owed - somehow they got to 4 months, when we only missed 3 payments - again, after multiple concerned calls to the department handling this process, I was ASSURED this would all be corrected. 

At the end of XXXX, I called to state I didn't need the forbearance program anymore and requested a termination of forbearance, and application to resolve the missed payments, reminding them I am unable to make higher payments. It was like pulling teeth to get them to allow me to me to exit from the program. Finally I received documents ( application ) to complete that would provide my current status, from which they could determine what solution would fit. Immediately we were told that we were approved to add the missed payments on top of the current mortgage payments, as if they never heard me the first 3x I said that wasn't an option. In a period of 45 days, I received an additional 2 " approval '' documents saying that I was going to receive a deferment, moving all missed P & I into a non-interest bearing account separate from the mortgage. The first stating we had only missed 2 payments, which elicited yet another call to them, and a few weeks later stating 4 payments were being deferred and to continue to make our payments. We had already resumed payments in XX/XX/XXXX yet called again to try and correct the timelines and # of missed payments. 

With each call, I was essentially told that this process finalization is taking around 60 days due to the high demand from distressed COVID borrowers. As time went on, into XXXX, I saw the timeline for this process, as shown on their website stuck at " final stages '', yet we continued to get threatening notes, statements showing I was 4+ months past due, etc. At this point, I was making calls 2x-4x/month to proactively resolve this issue. 

Meanwhile, and unbeknownst to me, a job situation necessitated a relocation. I put my house on the market and notified Pennymac what had happened, requesting info on how this would impact the deferral. We were told multiple times it would not have any impact, but it did present some additional difficulty regarding numbers, etc., which I understood. 

By the beginning of XXXX, the website status changed to completed, yet we had not receive formal written notice from Pennymac about process going forward. Multiple calls to customer service ( the XXXX team ) confirmed that we had been approved and they were in the process of correcting the balance sheets to reflect their contracted obligation to move the CORRECT amount into the deferral account. 

During this time, the house had been placed on the market - XXXX and sold within 14 days with a 45 day close. Title and escrow began requesting the appropriate documents from all parties : the initial payoff demand, fees, taxes, title, escrow amounts, expected payments from escrow during the contract period. Title immediately noticed that something was wrong when the first payoff demand was received with past due interest, and then the final demand included 157 days of past due interest, representing XXXX - XXXX. Please understand that the loan was in service from XX/XX/XXXX to XX/XX/XXXX - a period of 12 months and 6 days ( not 4 months ) wherein I made 9 payments in full with an additional $ XXXX/payment. The extra 6 days in Pennymac 's calculation of {$41.00} of interest per day XXXX the period from XXXX - XXXX ) amounted to ~ {$170.00} in the overall transaction. 

Title wired the EXACT amount requested on the payment demand, still confused by large changes between the initial and final payoff demand letters that didn't reconcile with the time between the initial demand request and the final demand. Yet, this was a matter left for post close reconciliation. Again, title paid the final demand in full, wired the money and confirmed receipt on XX/XX/XXXX ( a full day before the payoff expired ). 

On XXXX, title received a very strange call from Pennymac demanding an additional ~ {$1200.00} because they had supposedly made a property tax payment on XX/XX/XXXX. Title immediately stated that this was completely irregular because the tax payment should have been calculated into the final payoff demand which expired on XXXX, because the final payoff was requested prior to the payment XXXX yet 6 days after the payment had been made ). On my account activity page, it actually showed the tax payment was made on XX/XX/XXXX - 17 days earlier. 

Somewhere shortly thereafter, Pennymac again called title demanding another 4 days of interest because the loan wasn't actually paid in full until XXXX when they received the supposed " escrow shortfall '' or the additional ~ {$1200.00}. Remember, daily interest on the FULL outstanding principle was $ XXXX/day. Pennymac demanded the FULL amount of daily interest, as if they had not received any prior wire from title essentially paying off the principal and the fraudulently calculated 157 days in past due interest. 

As I understand it, escrow accounts are separate from the P & I on the mortgage - escrow accounts don't receive interest nor are they charged interest. So title argued with them, and refused to spend more time with a PennyMac rep, again on a voice call versus a fax or written demand, who couldn't explain how this had all happened - so they paid the interest out of their own pocket so they could just move on. 

Separately, I couldn't understand why the loan wasn't closed properly on XXXX and, again, called PennyMac where I received another series of lies, fabrications, excuses, etc., each contradicting the prior - but insisting their calculations were proper and correct. Each time I ended the call with, if you can't explain these transactions, the issues, etc., how do you know they are correct and defensible? Awkward silence each time, saying they would work to get me an explanation on their calculations, but that the calculations were correct. I was never ONCE told it was a title/escrow issue. I had to call title to ask why they made so many wires to Pennymac, and initially accusing them of error ( s ). 

From the get go ( beginning of the forbearance program ) XXXX mad well over 70+ calls starting in XXXX - each handled by the SPOC XXXX the ones who handle forbearance programs and deferrals for distressed buyers ... These people are the ones who are supposed to be able to explain this stuff - the only difference from a year ago is that they had more volume due to COVID, but these processes were NOT new.

My final call to them on Friday ( XX/XX/XXXX ), a 3.5 hour long call, the XXXX SUPERVISOR stated very insistently that our Deferral had NEVER been approved and ALL prior reps were wrong, with apologies. Our response was - we have the deferment approval in writing, dated XXXX, a month after your website showed approved ( XXXX ). To which he stated that a VP had gotten involved and stated I wasn't really approved and all amounts were correct, essentially implying that the VP had stated this arbitrarily and with some amount of anger, and no explanation. This supervisor was also provided with multiple calculations showing that PennyMac was wrong, likely in violation of their contracts, and clearly in violation of multiple federal lending, consumer protections laws, and the CARES act ( suspicions confirmed by title ). 

I actually see the deferral amount being entered into my transaction history around XX/XX/XXXX ( a full month after the deferral approval appeared on the PennyMac website, 7 days after our written confirmation that the deferral had been approved, yet a full 24 hours before Pennymac knew that we were actually closing the loan based on the expiration of the final payoff demand ). The same amount was then backed out of our account some 2 weeks later!!!!! Interestingly enough, the written approval still showed FOUR MISSED PAYMENTS. 

Well, a ) it was never 4 months, and b ) they never actually processed our XXXX payment received by them on XX/XX/XXXX, in the amount of {$2500.00}. 

XXXX has now been supplied with payment history directly from our bank showing the 9 payments sent and received. Title confirms the loan only existed for 12 months and a 6 day period after the XXXX month - the latter six day amounts to about {$250.00} in interest ( XXXX payment would have been due XXXX, but late on XX/XX/XXXX ). 

After 70+ calls, proactively and then reactively, you'd think someone could explain this. Even the final supervisor we spoke with admitted that it shouldn't be this hard to reconcile but claimed that HE had more information that I was being shown on their own website 's transaction history. He also stopped short of making any direct comment that something was wrong ... A prior supervisor had already looked at this, weeks before, and stated something was clearly wrong, but couldn't determine what it was .... 

In the end, I've provided Pennymac with calculation after calculation proving that even with the small amount of information they claim we have, that their principle payoff demands were incorrect, there's no explanation on how/why we were ever considered past due during an official forbearance program, and why, upon emergency, did 3 months of interest on the forbearance protected payments ( approx. {$3600.00} ) become $ XXXX dollars and 5+ months. The final supervisor stated it was because starting in XXXX, we hadn't been current : meaning my XXXX Payment applied to XXXX, the XXXX payment applied to XXXX, and the XXXX payment applied to XXXX. Still, showing the maximum amount we were EVER past due was 90 days, and still contractually protected from being considered late under the approved forbearance and the latter approved deferral. 

The outstanding principal shown on Pennymac 's website 100 % reconciled with the correct outstanding principal amount throughout the loan, until XX/XX/XXXX - when it became clear the XX/XX/XXXX payment was never applied. 

Title is now involved and will likely get involved with any civil or criminal lawsuits against Pennymac. Title clearly stated that the way this appears, and the lack of knowledge on the part of the department who is supposed to be responsible for this 24/7, proves we are NOT an isolated incident. 

In reading over other pending litigation, including 2 class action suits, etc., against PennyMac this behavior does appear systemic but with slight nuances. All of these lawsuits seem to imply that PennyMac 's goal was to find a way to foreclose, any way they could - even successfully, in some cases - destroying people 's credit, lives, etc.

Pennymac has a banner on their website I paraphrase as " We're here to help. '' That's just another lie. They claim they are researching things, but clearly not doing a thing - just appeasing us with people who say untruthful things, implying the fault is on the borrower in a nice way, like that would make any intelligent person just go away. 

How many people have been a victim to this, especially during COVID, without even realizing it and being convinced by narratives that contradict themselves to try and get them to go away .... shameful. 

Please also remember - Pennymac, as is stated at the beginning of every call, both when the XXXX answers as well as when the reps finally pick up, that they record all calls. As far as I can tell, multiple lawsuits against Pennymac show that these documents were subpoenaed and proven to show Pennymac 's fraud, deceit and attempts to cover up this behavior.

Company response to consumer: Closed with explanation