Consumer complaint received 2022-10-07 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC.
State: TX

Complaint narrative:
On XX/XX/2022 the Texas XXXX opened applications and I applied for assistance. On XX/XX/2022 PennyMac, my mortgage servicer, got notified of my application to the Texas XXXX from the state of Texas. 
The forebearance period on my loan was set to be exhausted in XX/XX/2022. PennyMac offered me a loss mitigation option in the form of a partial claim to pay for my delinquent payments during my forbearance. PennyMac has known about my application to the Texas XXXX since XX/XX/2022. 
I expressed my concern for going through with the partial claim if my assistance from the state was going to be helping me pay my past due amount. I did not want to do the partial claim, to make me current on my loan, and then have the assistance from the state not go through just because I was forced to do a partial claim. 
In the end, PennyMac pressured me to sign the paperwork for the partial claim, while telling me that if the money from the state were to come in, they would know to apply the funds correctly so that I would not have to do a partial claim. I foolishly trusted them to do the right thing. 
They did not, ( 1 ) citing that they did not have policies and procedures in place at the time my assistance of {$40000.00} from the state came to know how to handle the payment. ( 2 ) placing the blame on the state for their negligence in handling my loan. 

XX/XX/2022 I signed the partial claim paperwork after being falsely assured by PennyMac that they would do the right thing. 

XX/XX/2022 Payment of {$40000.00} from Texas XXXX was received by PennyMac. 

XX/XX/2022 I called PennyMac to make sure that they got the money, and to please apply it correctly as my partial claim was not yet completed. PennyMac confirmed they received the money, but it has not been credited to my account. 

Last two weeks of XX/XX/2022, I am frequently calling PennyMac asking why the payment has not posted to my account? I am concerned about making my XX/XX/2022 mortgage payment. I will have to borrow money from title loans company in order to pay. PennyMac assured me that the payment was there and that I was ok with them. 

XX/XX/2022 the ALL of the {$40000.00} was reported on my online account under reinstatement /fees. I was only behind about {$7500.00}. 

XX/XX/2022 I called and asked why was the payment misrepresented to me like that. PennyMac confirmed that they did not have policies and procedures to deal with my case, so they are still deciding on how to apply it. They also made it very clear to me that they could NOT even attempt to apply the {$40000.00} until I pay my XX/XX/2022 payment. I express my hardship and that I have been in constant contact with them about this since XX/XX/2022, but they did not care. In the end, I had to get a title loan in order to make the payment just so that they can apply the {$40000.00} correctly. I was wrongfully I informed that another reason as to why they have not applied the {$40000.00} payment is that my partial claim had NOT finished on their end yet even though the XXXX County Clerk reported my second lien on my home on XX/XX/2022. I foolishly gave them the benefit of the doubt and trusted that they would do the right thing. They did not. 

The during XXXX and XX/XX/2022 I was terrified to communicate with PennyMac after I broke down and was shaking with fear of losing my home on the phone with PennyMac. They did not consider my situation at all and again demanded I pay my mortgage payment. I again struggled to pay the amount but I was able to sell my plasma in order to make the payment. 

I made the payment XX/XX/2022, PennyMac reversed the {$40000.00} payment from the state on XX/XX/2022 to Texas XXXX withOUT giving me or the state any explanation as to why it was reversed. I finally was able to draft a written request letter asking them why and also addressing their negligence in handling my mortgage. I have attached my letter as well as PennyMacs answers and supporting documents to my complaint.

PennyMac violation with my mortgage includes : ( 1 ) failure to promptly credit my account after getting a conforming payment of {$40000.00} from Texas XXXX, and then returning ( with no explanation ) the {$40000.00} back to Texas XXXX after processing it in their system for two months without correctly crediting to my account. 
( XXXX ) Charging my mortgage unauthorized amounts. 
( XXXX ) Misrepresenting mortgage loan transactions and payment history in online accounts. 
( XXXX ) Incorrect handling of partial payments. Moving my assistance from the Texas XXXX ( {$40000.00} ) from fees/reinstatement to payment to suspense to reversal of payment ( XXXX ) Reporting false information to credit reporting agencies XXXX and XXXX. PennyMac reported the {$40000.00} payment to the credit report companies showing that they payment was applied to my mortgage, but never truly applied it. 

My financial hardship began when my husband passed away and then the pandemic came. I lost his income as well as mine and I have been just barely surviving to pay my mortgage and bills. I get pregnant and have complications that resulted in an XXXX XXXX to give birth to a XXXX baby. I could not work my normal hours to earn my normal wages since all my life events happened. When I originally applied for this program and got approved for {$40000.00}, I was so relieved. However it was short lived as my mortgage company accepted your payment, and did not apply it accordingly or in a timely manner. The last four months has been the worst part of my hardship and I foresee more fraudulent and predatory actions from my mortgage servicer because they have violated my consumer rights. I desperately ask your department to please look into this matter for me and please communicate to PennyMac to help them with their policies and procedures on how to deal with Texas XXXX funds so this does not happen to others. I can no longer make my monthly payments as they have made me exhaust my entire life savings. PennyMacs actions in handling my case with Texas XXXX is not how a prominent mortgage servicer should handle it. Their lack of preparation of policies and procedures to handle Texas XXXX program funds to me, has caused me permanent emotional damage and stress that I can no longer speak to them on the phone without breaking down and crying. That is not normal behavior for a person having an adult conversation, the emotional pain I have been going through since my husbands death keeps coming in waves of financial hardships I am going through. The reason as to why the payment was reversed is still unclear to me even after my mortgage servicer replied to my written request asking them why. Pennymac claimed that the state of Texas was the one who asked for the payment back. Please see additional documents attached for a continuation of my hardship.

Company response to consumer: Closed with explanation