Consumer complaint received 2025-06-25 00:00:00
Product: Mortgage — USDA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: AL

Complaint narrative:
In XX/XX/XXXX, I filed a formal complaint with both PennyMac and the CFPB ( complaint ID XXXX which made reference to several issues, one being an almost {$900.00} increase in my monthly payment to cover an escrow shortage ( due to a cancelled homeowners insurance policy, repeated misinformation and lack of accurate communication. Part of this issue stemmed from fact that my insurance agent ( XXXX XXXX XXXX XXXX ) failed to notify me of the cancellation- which was due to an incomplete application and underwriting error, but I was also repeatedly given incorrect and contradictory information regarding my insurance coverage by PennyMac. I contacted PennyMac several times by phone, including on XX/XX/XXXX, at which time I uploaded documents to the required insurance verification system. PennyMac acknowledged receipt and accepted those documents via email on XX/XX/XXXX and confirmed there validity ( incorrectly ) on or about XX/XX/XXXX. 

Shortly after that I contacted PennyMac escrow department at which time an and updated escrow analysis was run and my mortgage payment was adjusted to the original amount ( give or take a few cents ). That issue was marked resolved in the above referenced complaint. 

Now, almost a year later, I am facing the exact same issue. Not only did PennyMac reverse that resolution stating that the insurance was invalid all along, they billed me ( again ) for lender-placed insurance retroactively for XXXX, ( in the amount of the escrow reversal/ XX/XX/XXXX ) and then they billed me for XXXX in XX/XX/XXXX. ( The XXXX insurance for XXXX has since been refunded due to my securing a policy. ) This issue has caused a significant escrow shortage, ( in the amount of {$4500.00} ) resulting in inflated payments to cover the escrow shortage and confusion regarding whats owed despite the fact that the original matter had been reviewed, adjusted, and closed in my favor. 

Additionally, the insurance agent failed to notify me about the cancellation but continued contacting me about other policies ( like auto insurance ), showing they had full ability to reach me. 

This is a clear case of double-charging, poor record keeping, failure to communicate effectively, and abusive escrow practices. It is very clear that PennyMac has zero regard for the decision issued last year and that they intend to do what they see fit, regardless of any rules or regulations. 

I have no issues with the charges incurred from the XXXX insurance ( from XX/XX/XXXX - XX/XX/XXXX ), however, the retroactive back payments charged less thank 60 days after the decision of the CFPB seems very much like retaliation to my prior complaint. PennyMac accepted documents, confirmed and assured me that they were valid, and adjusted escrow based on that. To reverse course later seems intentionally malicious and is the definition of. misrepresentation. 

These deceptive servicing practices are a violation of : RESPA servicing rules ( Reg X ), CFPB guidelines on force-placed insurance, and possibly my loan servicing agreement, and they beg the question of how many times PennyMac will be allowed to manipulate my escrow account to cover their mistakes. 

Finally, these repeated predatory practices have adversely affected my credit and have put a severe strain on me financially and I still have not recovered. I am unable to refinance due to the negative balance in my escrow account and I would like this made right.

Company response to consumer: Closed with explanation