Consumer complaint received 2025-07-11 00:00:00
Product: Mortgage — FHA 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: PA

Complaint narrative:
I have a previous complaint in. This complaint is to the manner the PennyMac agents spoke to me with trying to question why I was considered delinquent on my account, why I owed so much when I was in a forbearance program which I successfully completed, why there were no other programs available when I specifically told there was. I also questioned how I was in foreclosure from XXXX of XXXX? 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX, PA XXXX Date : XX/XX/XXXX Loan Number : XXXX To Whom It May Concern : I am filing a formal complaint against my mortgage servicer, PennyMac Loan Services, regarding their handling of my FHA-insured mortgage, especially in relation to my participation in a COVID-19 Special Forbearance Program. 

The conduct of their agents and the company 's policies appear to violate multiple federal laws and HUD servicing guidelines. 

Background : - I entered a Special Forbearance Program with PennyMac in XX/XX/XXXX due to financial hardship. 

- I complied fully with the forbearance terms and made all required payments through the end of the plan in XX/XX/XXXX. 

- Despite compliance, I received notice that I was allegedly in foreclosure dating back to XXXX XXXX. and that I owed over {$24000.00}. 
- I contacted HUD, who advised I may qualify for multiple COVID-19 Recovery programs and directed me to speak again with PennyMac. 

Details of Servicer Misconduct : On XX/XX/XXXX, I spoke with three PennyMac representatives : XXXX ( Collections ), XXXX ( Customer Service ), and XXXX ( Loss Mitigation ). Their behavior raised serious legal and ethical concerns : 1. XXXX, called from Collections ( XXXXXXXX XXXX ) - Stated I was delinquent and in foreclosure, despite being on a confirmed forbearance plan. 
- Repeatedly suggested a short sale as my only option. 

- Denied any other assistance programs were available. 

2. XXXX ( XXXX XXXX  ) - Claimed I was too far behind on payments to qualify for help. 

- Told me to ask my family, friends, or church for money. 

- Suggested a personal loan and recommended using a 401 ( k ) to pay off the {$24000.00}. 

- Repeated the foreclosure claim and pushed a short sale multiple times. 

3. XXXX ( XXXXXXXX XXXX ) - I read HUD/FHA policy stating foreclosure must pause upon forbearance enrollment and compliance. 

- She denied my eligibility for any programs despite HUD 's guidance. 

- When I said I was going to contact a lawyer because none of the information seemed she was saying was true she reiterated very smugly that I had 'no options ' and said calling a lawyer would be a waste of money. They aren't going to be able to do anything. 

Requested Action : - Immediate investigation into PennyMac 's servicing conduct.

- Enforcement of HUD/FHA guidelines ensuring borrower rights.

- Demand that PennyMac provide written clarification of all assistance options available to me. 

- Halt any foreclosure activity while this complaint is under review. 

I am prepared to provide phone records, written documentation, and additional evidence to support my complaint. I request urgent attention due to the severity and potential legal violations involved. 

Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation