Consumer complaint received 2020-10-15 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC.
State: FL

Complaint narrative:
We purchased a house that was financed through XXXX XXXX Mortgage on XX/XX/XXXX. The loan was sold to PennyMac on XX/XX/XXXX and we continued making payments and had no problems with the mortgage company until now. We initiated a refinancing process with XXXX XXXX  and PennyMac was  requested to provide XXXX XXXX  with loan payoff information. This action resulted in PennyMac 's offer to consider them for the refinancing process. We had learned through XXXX that we did not have windstorm insurance and that in order to proceed with the refinancing process we needed to have windstorm insurance, so we immediately proceeded to purchase the windstorm insurance on XX/XX/XXXX. During the refinancing process with XXXX, we spoke to a representative from PennyMac who was able to lock in a better interest rate and we continued the process and closed with them on XX/XX/XXXX. 

During the process of refinancing, we received a letter dated XX/XX/XXXX advising us that windstorm, hurricane, and hail insurance is required on our property and that they were planning on purchasing on our behalf. We provided proof of the insurance on XX/XX/XXXX via electronic mail and thought the matter to have been settled. Another letter was received dated XX/XX/XXXX thanking us for providing evidence of the wind insurance and that they had updated their records to reflect this current information but also mentioned that their records show that there was a lapse in coverage from XX/XX/XXXX to XX/XX/XXXX and that {$5100.00} may be charged to our account for the period of time that the coverage was in force. The letter advised that in order to avoid this charge or have it reversed from our account to provide evidence. I contacted PennyMac on XX/XX/XXXX and advised once again that we did not have wind insurance for the dates requested and that I had contacted the insurance company and was not allowed to purchase backdated insurance and want to know how is the lender able to purchase retroactive insurance and we are not able to. I requested to have a manager contact me to be considered for not having that amount charged to our account since we were never formally advised that the wind insurance was a requirement until the refinancing process. I was requested to allow 24 hours for a manager to contact me and no calls were ever received. 

I received a second and final notice from PennyMac dated  XX/XX/XXXX requesting proof of insurance again or they will buy insurance to cover the XXXX to XX/XX/XXXX at our expense, which came with the promise of being billed against our escrow account. I contacted PennyMac again on XX/XX/XXXX and explained that we did not have insurance and we were not aware that we needed to have windstorm insurance until XXXX brought it to our attention during the refinancing process and we expeditiously purchased the required insurance. I understand that this demonstrates our willingness to comply with the requirements. I explained that we have been in contact with them before and I am still expecting a manager to return my call. I also advised that I had contacted the XXXX XXXX XXXX XXXX XXXX and the Florida Office of Insurance Commission to initiate formal complaints against a lender  imposed insurance that I understand to be frivolous and fraudulent in nature. I also asked for a formal investigation or complaint to be initiated and that their lack of a proper response or resolution will result in us seeking legal counsel. 

On the many attempts to have this situation settled, I also contacted the insurance company and tried to purchase insurance for the dates on the letter and was denied. How come a mortgage company purchase backdated insurance and I the consumer can't? We failed to have windstorm insurance on the property and PennyMac is holding us accountable for their negligence and lack of communication. I have tried to speak to a Manager in an  attempt to prevent from having them impose the {$5100.00} to our escrow or loan accounts and was told that a complaint will be filed and to allow additional time for a response. 

Please assist in having this matter resolved as soon as possible. 

Thanking you in advance for your prompt attention to this matter.

Company response to consumer: Closed with explanation