Consumer complaint received 2024-11-13 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: PENNYMAC LOAN SERVICES, LLC.
State: DE

Complaint narrative:
To whom this may concern - I have a mortgage on my primary residence that is currently with PennyMac. Earlier this year ( on or approximately on XX/XX/XXXX ), I was laid-off from work at XXXX XXXX XXXX XXXX XXXX XXXX I soon thereafter ( approximately XX/XX/XXXX ) contacted PennyMac regarding my inability to pay, and was approved for a forbearance plan, which allowed me to miss payments for a period of time. I recently ( as of XX/XX/XXXX ) started working again, and as required, called PennyMac to notify them of my employment status. I spoke extensively with a PennyMac representative regarding my repayment options & was approved for a program that did the following : 1 ) the balance for my missed payments was collated & added to the account as a new lien- to be due at term end ; 2 ) I would resume my regular scheduled monthly mortgage payments, with the first payment being due on XX/XX/XXXX ; XXXX ) my account would be brought current from a reporting perspective & regular credit reporting would resume with my payments starting in XXXX. I agreed & accepted this loan modification program during the phone conversation. I will emphasize here - I specifically asked the PennyMac representative, and was specifically told that my account ( upon acceptance of this modified loan program ) that my account would be reported as current with the major credit reporting agencies. Earlier this week ( the week of XX/XX/XXXX ), I received a XXXX XXXX notification that my mortgage loan with PennyMac was now being reported as 120 days late. This significantly impacted my credit score - dropping over XXXX points. Let it be known that I was not even 120 days late before I started the forbearance plan. I spoke with multiple PennyMac representatives today to try and correct the incorrect credit reporting and was told the following : 1 ) my past due balance ( i.e., the balance accrued during my time in forbearance ) would be reported as delinquent ; 2 ) I would not be reported as current until that past due balance was satisfied. This makes absolutely NO sense considering ( as noted previously ) the balance for payments missed during time in forbearance were added as a second lien on my account- with that balance being due at term end. I questioned this process with PennyMac representatives & eventually ended up speaking with a manager. The manager advised that my account will be reported current once two ( 2 ) separate things occur - XXXX ) I have to receive in paper form a modification agreement from PennyMac- sign & return it ; XXXX ) resume my regular monthly payments on XX/XX/XXXX. The PennyMac manager advised that the paper modification agreement was mailed to be on XX/XX/XXXX - I still as of today ( XX/XX/XXXX ) have not received it. Again, this makes absolutely NO sense - How can PennyMac update their credit reporting before they even send me the modification agreement. How can PennyMac update their credit reporting to show me as 120 days past due when my first payment isnt due until XX/XX/XXXX - AND the accrued forbearance balance isnt due till term end? I have been working in consumer financial services for XXXX years & this process with PennyMac is completed flawed, misconstrued, and a clear violation of the rules & regulations set forth within XXXX. I expect PennyMac to comply with the information that I was told ( I would assume this is on a recorded phone conversation ), and update the credit reporting on my mortgage loan account to show as CURRENT and NEVER 120 days late. Thank you for your attention to this matter.

Company response to consumer: Closed with explanation