Consumer complaint received 2025-12-30 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: TX

Complaint narrative:
PennyMac Loan Services , LLC is mishandling my mortgage servicing related to a XXXX payment deferral and my request to remove escrow, and the prior CFPB case ( No. XXXX ) was closed even though the underlying servicing errors remain unresolved. In XX/XX/XXXX, XXXX placed me on a XXXX payment deferral and sent a written notice dated XX/XX/XXXX stating that the missed payments ( principal, interest, and negative escrow ) were moved to the end of my loan as a noninterestbearing balance, due only at maturity, sale, refinance, or payoff, and that the deferral will not change any other terms of my mortgage. 


However, in a letter dated XX/XX/XXXX, XXXX states that it is including this noninterestbearing deferred balance in my overall loan balance to calculate loantovalue ( XXXX ) and to deny my request to remove escrow. XXXX calculated my XXXX by adding the interestbearing unpaid principal balance and the entire deferred balance ( {$370000.00} ) and dividing that by the original value of my home ( {$440000.00} ), resulting in an XXXX of XXXX XXXX, and then used that number to deny escrow removal. This appears inconsistent with how a XXXX noninterestbearing deferral is supposed to work and effectively treats a balloon balance that is not due until maturity as if it were current principal for escroweligibility purposes. 


I have asked XXXX to ( XXXX ) confirm in writing that the deferred amount is truly noninterestbearing and separately tracked from the interestbearing principal, ( XXXX ) provide a clear breakdown of interestbearing principal versus noninterestbearing deferred amounts, and ( XXXX ) explain why the noninterestbearing deferred balance is being included in the XXXX used to deny escrow removal instead of using only the interestbearing unpaid principal balance. I also requested the specific XXXX XXXX XXXX XXXX provisions, lender letters, or investor directives that allegedly require inclusion of this noninterestbearing deferral in the XXXX calculation for escrow removal on a current, performing loan. XXXX has refused to provide this underlying investor guidance and has not provided a transparent, itemized calculation that shows how it derived both the current XXXX and the {$22000.00} lumpsum principal reduction it says I must pay to reach XXXX XXXX XXXX. 


This raises serious concerns about : Whether XXXX is correctly implementing the XXXX payment deferral as a noninterestbearing balance due at maturity, sale, refinance, or payoff. 


Whether XXXX is misapplying or exceeding XXXX XXXX requirements by counting the entire noninterestbearing deferral against me when deciding if I qualify to remove escrow. 


Whether my account information, XXXX, and escrow status are being reported and communicated accurately. 


I have also requested, as a qualified written request / notice of error / request for information under XXXX, a complete XXXX payment history, escrow history and analysis, current loan data screen showing interestbearing balance and noninterestbearing deferral separately, and the internal worksheets XXXX used to compute my XXXX and the required principal curtailment. XXXX has labeled some of these items unduly burdensome or proprietary, even though they go directly to my loan balance, escrow status, and the calculations XXXX is using to deny escrow removal. 


Because XXXX is not providing complete, guidelinebased documentation or correcting the apparent servicing errors, the matter remains unresolved and is impacting my ability to manage my mortgage and remove escrow as allowed by investor guidelines.

Company response to consumer: Closed with explanation