Consumer complaint received 2025-08-01 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: TX

Complaint narrative:
This complaint is a continuation and urgent escalation of previously submitted CFPB complaints XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX, and XXXX additional related filings which were closed without proper resolution. 

I am respectfully requesting that the CFPB reopen these complaints or treat this new submission as a formal continuation requiring supervisory intervention. The harm has escalated and I am now facing imminent foreclosure despite PennyMac acknowledging its own servicing errors in writing.

PennyMac improperly disbursed over {$34000.00} in property taxes from my escrow account between XXXX and XXXX despite a valid and active disability-based tax deferral on file since at least XXXX, in accordance with XXXX  XXXX XXXX XXXX. That deferral legally prohibits property tax disbursements unless the homeowner sells or passes away. These funds were disbursed without my consent or obligation, directly inflating my monthly mortgage payment by more than {$1500.00}.

PennyMac has admitted in writing that the tax disbursements were in error. They issued a partial escrow refund of {$11000.00} in XX/XX/XXXX and a separate letter with a {$100.00} gift card signed by representative XXXX XXXX. They also stated in writing that the loan modification would be unwound due to the servicing mistake. However, they then reversed course, falsely claiming I requested reinstatement of the modificationsomething I never didand have continued demanding inflated payments. The new loan modification includes {$15000.00} in escrow advances that stem directly from the illegal disbursements. 

These actions have caused : Imminent foreclosure despite my eligibility for relief Delays in XXXX disaster loan approval Emotional trauma and extreme distress, including while I was under a protective order as a survivor of XXXX XXXX Further harm while receiving XXXX  and recovering from disaster damage I have now been forced to restart this complaint process because all XXXX previous cases were closed prematurely. PennyMacs own documentation confirms wrongdoing. The loan modification should never have been required, and the disbursed escrow funds should have never left my account. Their internal communication has been contradictory, misleading, and at times coercive. 

Requested Relief : Immediate reopening or escalation of this and all prior linked complaints Full refund of all improper tax disbursements ( not just partial refund ) Reversal of all modifications based on escrow errors Correction of monthly payment based on actual legal obligations under tax deferral Regulatory review of PennyMacs handling of XXXX deferrals, misrepresentation, and failure to stop foreclosure actions despite documented servicing violations The Consumer Financial Protection Bureau was created to prevent exactly this kind of abuse. Please take this seriously. My home is at risk because of errors PennyMac admitted, yet never corrected. I am seeking protection, enforcement, and resolutionnot another dismissal.

Company response to consumer: Closed with explanation