Consumer complaint received 2025-08-13 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Fees charged
Company: PENNYMAC LOAN SERVICES, LLC.
State: TX

Complaint narrative:
I am filing this complaint against PennyMac regarding property preservation charges that I believe are unnecessary, unreasonable, excessive, and not properly documented. Additionally, PennyMac has denied my request for invoices or documentation on XXXX separate occasions so that I can review the charges assessed to the account/payoff. 

Upon my father 's death, I became the successor in interest on his property. He did not have a will, so had to go through a lengthy and costly legal process to get this completed and the finalized documentation was provided in XX/XX/XXXX to PennyMac.

I had been in communication the lender that I was doing repairs to the property to prepare it for sale, eventually requesting a payoff. To be transparent, I had missed a few payments due to my husbands job loss, but maintained communication with PennyMac on my efforts to get caught up and my intentions with the property. I was able to get caught up in the 2nd week in XXXX on all payments as well as gave them a timeline that I would be paying off the property at the end of the month. 

Two weeks ago I went to the property with contractors to do additional work on the house and discovered the lock had been changed, sewer caps on the lines in addition to a sticker on the door saying the property was vacant or abandoned. I called the number on the sticker who advised me the lender had ordered this to occur. I called PennyMac and they stated that they did this to secure the property from break-ins, etc. At that time, I submitted a request to have the lock box code released to me so that I could access the property and continue my renovation work. I still have not received approval or any communication from PennyMac on this request. I then called and submitted a request through the 3rd party vendor XXXX, to see if they could get me access. 

Last Monday XXXX, logged into my account to payoff the balance of the loan of approximately {$9000.00}. Upon logging in, I found that PennyMac had added property preservation charges totaling {$5800.00} unbeknownst to me of work done on the property to secure it. This amount was shocking to me to change the locks and cap water/sewer lines.

I called PennyMac and was on the phone for 1.5 hours to research where these came from. At that time, they told me these were the incurred charges of property preservation fees from the 3rd party vendor that get passed to the consumer. I requested a detailed, itemized invoice for these charges and was told they do not provide invoices on property preservation fees without a court order. I asked why they would not notify me in advance that these charges were going to be added and give me time to respond, the agent responded that they do not have to notify the successor of interest, only the borrower. The agent at that time gave me a few lines items off of the invoice verbally which included {$4500.00} labeled as " overgrowth removal ''. This charge raises several red flags, as I was physically present at the property and can confirm that there was no significant overgrowth present that would justify such a substantial service. A {$4500.00} charge implies an extensive amount of labor and equipment use, which simply does not align with the actual condition of the property. Furthermore, based on the location and local market rates, this amount appears to be both excessive and potentially deceptive.

Following my initial phone call, I ended the conversation and began researching my options. Later that same day, I called back a second time to again request any supporting documentation related to the {$4500.00} charge. I was told once more that no documentation would be provided, but that I was still responsible for the charges as the successor in interest.

Within the next day or so, I formally disputed the charges with PennyMac and again requested documentation of the alleged work. I even offered to provide photographs of the property that clearly show no such work was performed or necessary. Despite this, I was again denied access to any documentation. To date, I have not received any before-and-after photographs, a breakdown of the work performed, the dates of service, or the identity of the vendor who allegedly completed the work. Additionally, nothing has been uploaded to the borrower portal for my review nor responses to my submitted emails. There seems to be no consideration or rights for successor in interest in these situations where a death has occurred. PennyMac will not respond to my requests for access to the property nor will they provide me with documentation of the charges assessed.

Lastly, these property preservation charges now make up approximately 65 % of the total loan payoff amount ( payoff approx. {$9000.00} and adding an additional {$5800.00} in fees ), which is deeply concerning. This has created a significant and unexpected financial burden, making it extremely difficult to pay off my father 's loan. What should have been a manageable resolution is now being obstructed by unexplained and inflated charges, with no transparency or documentation to support them.

I believe these charges may violate RESPA ( Real Estate Settlement Procedures Act ) servicing requirements and may constitute unfair or deceptive practices under consumer protection laws Regulation X. 

I appreciate the CFPBs assistance in ensuring that mortgage servicers provide clear, accurate, and transparent information, especially in situations where costs are passed onto consumers without proper documentation. In addition, to not taking advantage of the successor in interest situations where there is no accountability/regulation of charges assessed by 3rd party. I mailed a Notice of Error certified letter to PennyMac on XX/XX/XXXX and have attached it for your review.

Company response to consumer: Closed with non-monetary relief