Consumer complaint received 2025-07-18 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: PENNYMAC LOAN SERVICES, LLC.
State: MD

Complaint narrative:
I am filing this complaint regarding a mishandled mortgage assumption and refinance process by XXXX XXXX XXXX XXXX following the death of my mother. 

I became a confirmed successor in interest in XX/XX/year>, and the title to the home was transferred into my name in XX/XX/year>. Despite this, I was told by the lenders assumption department that I could not assume the mortgage because I had not held the title for XXXX XXXX  which I later confirmed with that same department was inaccurate. This misinformation caused unnecessary delays and prevented me from assuming the mortgage when I was legally eligible. 

I later applied for a refinance, which was denied, even though I had : Made over XXXX XXXX of consistent, on-time mortgage payments Held legal title to the property Provided supporting records including XXXX statements and property deed Demonstrated sufficient financial reserves Although the application was labeled as a manual underwrite, no one requested documentation that could have verified my payment history, such as bank or credit card statements. When I proactively asked whether additional documentation would be needed, I was told that XXXX months of bank statements would be fine and that more would be requested if needed. That never happened. 

Before submitting the application, I also received misleading interest rate quotes and monthly payment estimates from a loan XXXX in the lenders sales department. Specifically, I was quoted : Conventional loan approval despite my XXXX XXXX not meeting minimum requirements A monthly payment over {$400.00} lower than my current one And most notably, interest rates that were significantly below market at the time These representations were not based on a full review of my creditworthiness or financial profile, and they created false expectations that directly influenced my decision to move forward. 

Only after I pointed out these errors including their failure to verify my payment history, the misinformation about assumption eligibility, and the inaccurate loan terms I was quoted did the lender begin reconsidering my file. Their decision to reevaluate only occurred because I had to advocate for myself, not because they followed proper procedures or complied with regulatory requirements. 

I believe their actions raise serious concerns under the following laws : Regulation X ( RESPA ) For failing to honor my rights as a successor in interest Regulation B ( ECOA ) For failing to conduct a fair and complete evaluation of my refinance application UDAAP For quoting inaccurate, below-market interest rates and payment terms that I was not qualified for TILA and RESPA For not clearly disclosing my refinance options or accurately explaining the process This experience has caused unnecessary delay, financial stress, emotional distress, and XXXX have impacted my credit and future mortgage options. I respectfully request that the CFPB investigate this case and ensure the lender is held accountable for failing to comply with fair lending, servicing, and consumer protection regulations.

Company response to consumer: Closed with explanation