Consumer complaint received 2024-07-29 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: FL

Complaint narrative:
I had a Mortgage with XXXX. They applied forced placed wind insurance without my knowledge and tried to foreclose on my property. So when I finally resolved that issue, I made sure when I refinanced away from XXXX to Penny Mac using my VA, I was not required to have wind insurance. 
They have applied forced placed wind insurance without my knowledge and have notified me that they have accelerated my loan and are threatening foreclosure. 
When I went to pay my mortgage payment in XXXX of XXXX, it was {$1000.00} more than it was supposed to be. After hours of being on the phone and multiple departments, it was explained that Penny Mac purchased forced placed wind insurance in XXXX of XXXX. When I pointed out that wind insurance was not required, I was told that all Penny Mac mortgages in the state of Florida are required to have wind insurance. I asked for copies of their company policy stating this, I never received them. I then pointed out that I never signed anything in the closing stating that wind insurance was required and that I had " reasonable '' and " addiquit '' home owners insurance with XXXX. At which point I was told that my insurance was not enough and that it was recommended I have wind insurance. I stated that recommended is not required and they need to remove the policy. At some point they told me I signed something in my closing paperwork that required me to have wind insurance and transferred me to there documents department and they could not find anything stating I was required to have wind insurance. I have gone round and round with them and still NO answers or any proof that I agreed to carry wind insurance. 
When I finally did receive copies of the letters they claim to have sent. It clearly states that " This insurance will only cover the value of your property up to the current principal balance of all mortgage liens against the Property that are serviced by us, '' Well this statement alone presents a major problem. I owe {$260000.00} on my mortgage, The wind insurance policy they took out is for around {$800000.00}. Making my forced placed wind insurance monthly payment 3 times more than it should be even if I accepted the forced placed wind insurance was justified. When I asked how in the wold they reached the {$800000.00} number, I was told they based it on my insufficient XXXX home owners policy. Huh? 
Since XXXX I have repeatedly attempted to pay my agreed upon monthly mortgage payment. They have refused to let me. I have asked that the the insurance payment be put aside until the dispute I have with it is resolved. They refused. I have asked multiple time to speak with someone who has the authority to remove the insurance. I was told they could not remove it because it was placed automatically. I was informed that any payment I made would go to paying for the policy and I would have to pay any remaining balance to bring my mortgage to current. They did offer me a personal loan so I could pay for the insurance and then I could pay my mortgage payment. All of this is insane and unreasonable. If wind insurance is a requirement, than it should have to be a part of your home owners policy. If it is not a requirement, and is a special " add on '' insurance, than mortgage companies should not be allowed to force place it. Let alone purchase an {$800000.00} policy in my name that I have to pay for were the only legal requirement is to say that they sent 2 letters. No certified letter, no tracking number showing they actually sent it, nothing. Just their word. And boom, your mortgage payment goes up {$1000.00} a month. 
I thought what XXXX tried to do was just because they where a corrupt company, I am starting to think it is the mortgage industry. I have {$400000.00} of equity in my home. That is why I am being targeted. This is another attempt to steal my home.

Company response to consumer: Closed with explanation