Consumer complaint received 2025-11-04 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: WA

Complaint narrative:
Unknown date, but around the XXXX week of XX/XX/XXXX I called Pennymac because I wanted to find out if I removed my insurance from escrow if they could return the funds they added to my reserve to cover insurance. This person told me no. That was incorrect. 

I changed my insurance from XXXX to XXXX XXXX around the same time and paid XXXX XXXX outside of escrow in a bundle with my car. The insurance was effective XX/XX/XXXX. 

I called XX/XX/XXXX because for some reason the system still showed I had XXXX. They said they didn't receive the information from the insurance company. I told the customer service I am paying XXXX XXXX  outside of escrow and I will provide the new insurance information but I DO NOT want it included in escrow. She said in order to accomplish this I need to upload the receipt as proof of payment. I did that. On the same day they used the RECEIPT OF PAYMENT to charge my escrow for the full year of insurance I TOLD THEM I DO NOT WANT IN ESCROW and PROVED I PAID. I saw this deduction in my escrow account and called them THE SAME DAY XX/XX/XXXX to tell them to refund the insurance as I am paying insurance outside of escrow. They told me they couldn't do that. I demanded to speak to a manager who told me she also was unable to pull the funds back but that she would request the check be pulled. 

XXXX I just received a call from the manager telling me that her request for the check to be pulled ( the SAME DAY IT WAS WRITTEN ) failed and the check went out to State Farm. 

So now I have to fight with XXXX XXXX for a refund, so that I can get that money to pay Pennymac back because my escrow balance is negative. 

This also means that for XXXX Escrow payment I just paid another insurance payment in my escrow payment that I shouldn't have which means I paid my insurance TWICE. If I don't get this nightmare rectified this month I will double pay my insurance again next month because I am paying it in Escrow and outside of Escrow. 

Following getting my money back and paying Pennymac back I need them to perform a CORRECT escrow analysis 1 ) refunding my insurance over payment {$140.00} for XX/XX/XXXX since I already paid that outside of escrow 2 ) removing the $ XXXX. they charge for reserves as I have already paid over {$600.00} ( XX/XX/XXXX of my escrow ) and per law that is the XXXX they can hold now that I am paying insurance outside of escrow ) 3 ) refunding the overage in reserves that I've already paid since that amount can only be based off my mortgage and not insurance. 4 ) Removing the {$140.00} each month from my escrow payment for insurance since I am paying it outside of escrow. 

I think that is everything. But I am REALLY ANGRY that they did this and put me in a place that I am now paying insurance inside and outside of escrow and I have to fight with my insurance to get my money back to get my escrow balance correct. 

The fact that they 1 ) deducted my insurance FROM A RECEIPT is incompetence at the highest level 2 ) couldn't stop the payment that day - XXXX 3 ) couldn't stop the check that day - XXXX  I do not trust them at this point to calculate my mortgage correctly and give me my correct refund and I need help because they are INCOMPETENT.

Thank you.

Company response to consumer: Closed with explanation