Consumer complaint received 2026-01-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: FL

Complaint narrative:
NATURE OF COMPLAINT : PennyMac engaged in gross negligence and multiple violations of RESPA, XXXX XXXX Servicing Guidelines, and fiduciary duties, resulting in wrongful foreclosure proceedings and loss of refinancing opportunity during historic low interest rates. 

CHRONOLOGY OF VIOLATIONS : XX/XX/XXXX : XXXX forbearance ended. We requested XXXX Payment Deferral per XXXX XXXX Lender Letter XXXX. XXXX failed to offer this option despite our qualification and multiple requests. PennyMac later admitted to us that they " didn't follow that process. '' XXXX XX/XX/XXXX : XXXX erroneously increased our escrow, claiming property taxes were {$28000.00} annually. Our actual XXXX XXXX property taxes were {$7000.00} ( confirmed by XXXX XXXX XXXXr XXXX XXXX notice and tax invoice ). PennyMac inflated our escrow by over XXXX %. 
XXXX XXXX XXXX : We notified PennyMac of this error " multiple times a month on a recorded line '' ( case reference # XXXX ). Despite : Receiving the TRIM notice Receiving the tax invoice from XXXX XXXX XXXX Actually PAYING the correct tax amount ( {$7000.00} ) in XX/XX/XXXX PennyMac refused to correct the escrow analysis or our account. The escrow analysis dated XX/XX/XXXX still contained the false {$28000.00} figure and XXXX statement still showed false {$28000.00} figure. 
Basis for False Escrow Increase : PennyMac received a notice that we had APPLIED for a XXXX loan for window replacement. We did not ultimately take this loan. Even if we had, the maximum annual tax increase would have been approximately {$2000.00} ( for a loan over XXXX years ), not {$28000.00}. For taxes to increase by PennyMac 's claimed amount, the XXXX loan would need to exceed $ XXXXwhich is impossible under XXXX program limits. 
Impact on Trial Payment Plan post XXXX : Because of the false escrow amount, the trial payment period became " financially unmanageable, '' more than doubling our monthly payment. PennyMac created false " past due '' amounts based entirely on their escrow error. Additional improper fees were charged ( inspection fees, etc. ). 
Foreclosure Proceedings : PennyMac initiated foreclosure proceedings based on these false escrow amounts and fabricated delinquency. 
XX/XX/XXXX Lost Refinance Opportunity : During XXXX, mortgage rates reached historic lows ( XXXX % ). We were attempting to refinance during this period but could not proceed due to PennyMac 's foreclosure filing and false reporting of our account status. Current rates are now XXXX % +. This servicer error will cost us approximately {$160000.00} in additional interest over the life of our loan. 
XXXX XXXX Escalation : On XX/XX/XXXX ( and XX/XX/XXXX ), we spoke with PennyMac XXXX XXXX XXXX, who acknowledged reviewing our loan per XXXX XXXX escalation. PennyMac agreed they did not follow proper XXXX XXXX servicing guidelines regarding XXXX payment deferral. 
Loan Modification Misrepresentation : The loan modification PennyMac presented to Fannie Mae omitted indication that it was related to XXXX forbearance. 
VIOLATIONS : XXXX. RESPA Violations ( 12 CFR 1024.17 ) : o Improper escrow analysis using false tax amounts o Failure to correct known error after multiple notifications o Failure to conduct accurate annual escrow analysis o Improper escrow cushion o Failure to respond to borrower inquiries with accurate information XXXX. XXXX XXXX Servicing Guide Violations : o Failed to offer required XXXX Payment Deferral ( XXXX ) o Misrepresented loan modification to XXXX XXXX XXXX XXXX Negligence/Breach of Fiduciary Duty : o Paid actual taxes of {$7000.00} in XX/XX/XXXX but continued to escrow based on false {$28000.00} amount o Ignored repeated notifications over XXXX months over their recorded line o Created false delinquency XXXX. Wrongful Foreclosure : o Initiated foreclosure based on servicer-created errors o Proceeded despite knowledge of error DAMAGES INCURRED : XXXX. Lost Refinance Opportunity : Approximately {$150000.00} in additional interest over XXXX-year loan term due to inability to refinance at XXXX rates XXXX. Excess Escrow Payments : Overpayment from XX/XX/XXXX to XX/XX/XXXX based on false tax amount XXXX. Improper Fees : Inspection fees and other charges assessed during false delinquency period XXXX Credit Damage XXXX. Emotional Distress : Catastrophic impact and tremendous stress from wrongful foreclosure threat and XXXX months of fighting servicer errors XXXX. Time and Effort : Countless hours spent on phone calls, emails, and documentation gathering

Company response to consumer: Closed with monetary relief