Consumer complaint received 2026-04-28 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Fees or costs after closing
Company: PENNYMAC LOAN SERVICES, LLC.
State: NC

Complaint narrative:
To Whom It May Concern, I am filing a formal complaint regarding my mortgage servicing experience with PennyMac and the handling of hardship forbearance assistance tied to my home loan. In XXXX, after losing employment, I entered a short forbearance plan for approximately XXXX to XXXX months before returning to work and resuming normal payments. In XXXX, XXXX, I again lost employment and entered another forbearance plan during an extended hardship period. I remained unemployed throughout XX/XX/XXXX, all of XXXX, and continue to experience financial hardship. During this period, PennyMac required me to provide monthly updates on my employment and financial status. I consistently complied with these required check-ins. Despite these repeated communications over a year, I was never clearly informed that a separate HUD-related partial claim, subordinate lien, or secondary payoff obligation had been created. Throughout these interactions, I was left with the understanding that deferred amounts from the forbearance plan would be added to the back of my existing mortgage loan. If written disclosures were sent at any point, they were not clearly explained or meaningfully reinforced during the many direct servicing conversations that took place over an extended period. When I sold my home in XXXX, I was informed by the closing attorney, not XXXX, that an additional payoff was required through a separate loan obligation. I then learned that approximatley {$55000.00} was owed through this secondary claim. This came as a major surprise and dramatically reduced my expected sale proceeds. After satisfying the primary mortgage, the additional lien, realtor commissions, and closing costs, I was left with approximatley {$2500.00} from the sale of my home, in an inflated real estate market. I had reasonably expected to retain substantial equity that would have allowed me to secure housing and financial stability during unemployment. Instead, I have had to move in with my elderly father and restart financially at age XXXX. My complaint is not simply about hardship assistance programs themselves, but about the lack of clear communication, transparency, and meaningful disclosure regarding the structure and consequences of this additional debt obligation. I respectfully request : \n 1. A full review of my account history and servicing communications. 2. Copies of all documents allegedly disclosing or authorizing the partial claim / subordinate lien. 3. Preservation and review of any call recordings or servicing notes related to my monthly hardship check-ins. 4. A determination of whether proper notice and explanation were provided. 5. Any relief, reimbursement, fee review, or corrective action deemed appropriate. 6. Review of servicing practices so that other borrowers do not experience similar surprises during the sale of their homes. 7. A plain-language explanation of how the {$55000.00} balance was calculated. Thank you for your time and attention to this matter. I look forward to your response.

Company response to consumer: Closed with explanation