Consumer complaint received 2026-03-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: GA

Complaint narrative:
Complaint Update / Consumer Narrative CFPB XXXX XXXX. XXXX I am submitting this additional complaint update regarding ongoing mortgage servicing errors by PennyMac Loan Services involving escrow mismanagement, improper lender-placed insurance, inaccurate accounting, and failure to reimburse borrower funds despite repeated requests. Despite several prior responses from PennyMac, the company continues to provide explanations that are incomplete, internally inconsistent, and unsupported by the escrow ledger or disbursement history required to verify their claims. To clarify the matter, the dispute involves three separate categories of funds. - First, borrower reimbursement for funds paid out of pocket. PennyMac failed to disburse my homeowners insurance premium from escrow even though sufficient escrow funds were available. Because of this servicing failure, I was forced to personally pay {$300.00} to XXXX XXXX to prevent cancellation of my insurance policy. I previously submitted a copy of the check issued to XXXX XXXX as proof of this payment. PennyMac has never acknowledged that documentation and has not reimbursed this amount. Amount owed : {$300.00}. - Second, compensation related to servicing errors. PennyMacs latest response refers to a {$750.00} amount described as a gesture of goodwill. This characterization is misleading. The amount arises directly from servicing failures acknowledged by PennyMac, including mishandling of my insurance renewal and the improper placement of lender-placed insurance. Amount owed : {$750.00}. - Third, escrow surplus identified by PennyMac. PennyMacs most recent response states that an escrow surplus of {$1400.00} was identified following adjustments to my escrow account. Under mortgage servicing rules, escrow surpluses must be refunded to the borrower. Amount owed : {$1400.00}. -- >Total amount requiring explanation and payment : {$2500.00}. However, PennyMacs response contains significant accounting inconsistencies. Their letter states that a total of {$2000.00} has been refunded and/or reimbursed. The individual figures referenced in their explanation are : {$720.00} LPP premium refund {$150.00} PMI refund {$590.00} escrow surplus allegedly issued electronically {$750.00} credit described as goodwill These figures do not clearly reconcile with the total PennyMac claims to have refunded. Additionally, the {$300.00} payment I made directly to XXXX XXXX is not included in their calculation despite having been documented and submitted to the servicer. This indicates that PennyMac is combining internal escrow adjustments, escrow surplus refunds, and borrower reimbursements into a single figure without providing the supporting escrow ledger necessary to verify the accounting. As of today I have not received any of the payments referenced in PennyMacs response. In addition, PennyMac continues to refuse to provide the documentation necessary to verify their accounting, including : The complete escrow analysis The full escrow account ledger The disbursement history showing dates, payees, and transaction references Without this documentation the borrower can not verify whether escrow funds were properly handled. I have formally requested that PennyMac issue the reimbursements owed to me by paper check so that there is a verifiable record of payment. I have also requested written confirmation specifying : The amount of each payment The reason for each payment The issuance date The check number To date, PennyMac has failed to provide this information. This ongoing lack of transparency raises concerns regarding compliance with federal mortgage servicing obligations under the Real Estate Settlement Procedures Act and related servicing regulations. At this time I am requesting CFPB assistance to require PennyMac to : 1. Provide a complete escrow ledger and escrow analysis showing all transactions affecting my escrow account. 2. Provide a verified written accounting explaining how each amount referenced in their responses was calculated. 3. Issue direct payment for the amounts owed to the borrower totaling {$2500.00}. 4. Confirm the issuance date and payment details for each reimbursement. Until these inconsistencies are fully resolved and proper reimbursement is issued, this complaint should remain open.

Company response to consumer: Closed with explanation