Consumer complaint received 2024-06-18 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: PENNYMAC LOAN SERVICES, LLC.
State: CO

Complaint narrative:
I am writing in regard to my mortgage account XXXX serviced by PennyMac. It has come to my attention that I have not yet received the original promissory note associated with my mortgage. As a borrower, it is my right to possess the original promissory note, and I demand its immediate return in accordance with 7 CFR 1951.15, Despite multiple attempts, PennyMac has not fulfilled the obligations of the agreement, and continue to deny us our rights. They are in violation of several provisions of their indenture agreement, prospectus, TILA, RESPA, State laws, and FDCPA. I had a Forensic Loan Audit done by a certified XXXX XXXX, he conducted an audit and it uncovered a lot of foul play, I have attached these findings. From XX/XX/XXXX to XX/XX/XXXX the {$490000.00} loan had made {>= $1,000,000} and I have yet to receive a penny of that and we originated the loan, we created the note, they borrowed from us, they are Bankrupt, they didnt invest a dime in this transaction. 
On XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX executed a negotiable promissory note and a security interest in the form of a DEED OF TRUST in the amount of {$490000.00}. This document was filed as document number XXXX in the XXXX XXXX of XXXX XXXX. The original lender of the promissory note is SXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX ( hereafter MERS ) is not named as the payee of the note but is named as acting solely as a nominee for the lender as the beneficiary of the security interest Security Deed. The Note Kuristin and I, XXXX XXXX signed, held a cash value of {$490000.00}, enough to pay the so called loan which we never seen nor received, the lender in fact took the note created a bond and received credit from the federal reserve for around XXXX times the value, monetizing it creating millions of dollars then took out a loan for the {$490000.00} and told us it was our responsibility when we actually bought the house from XXXX XXXX for the sum of {$10.00} as it states in the Bill Of Sale ( ATTACHED ). They did this without our knowledge or authorization through wrongful acts of fraud, fraudulent inducement, concealment and fraudulent misrepresentation. 
We unknowingly gave the loan servicer, XXXX XXXX XXXX {$490000.00} with nothing in return, had we received the XXXX check we would have paid the promissory note, and would not be in the process of illegal foreclosure from PennyMac, XXXX the XXXX supreme court ruled the note must travel with the mortgage or they become null and void seeing as the note and the mortgage have been Bifurcated I am under no obligation to tender any payment to PennyMac. Not only that they are not reporting any of this income to the SEC, they have been collecting all of these funds tax free, furthermore, 90 days after the loan defaulted, insurance paid the off the loan so there is nothing left to pay, PennyMac is being greedy, and gluttonous trying to force me and my children out of our home with coercion, when we in good faith supplied them with cash value for a loan we never received with the Endorsed Promissory Note. 
To this date, XX/XX/XXXX the Lender has never provided Borrower with true, complete, accurate or timely documents as required. ONLY AFTER such provision has been complied with can the 3 DAY RIGHT TO CANCEL period begin. If the required full Disclosures have not been provided, then the period in which to CANCEL is extended for up to XXXX ( XXXX ) years, or until Lender moves to foreclose. The records thus far evidence that Borrower has requested to cancel within the XXXX ( XXXX ) year stipulated time period, while still waiting to receive all truth-in-lending disclosures as required by Federal Law, the same of which has never been received. 


On XX/XX/XXXX, I XXXX XXXX sent a notarized Notice Of Right To Cancel, canceling the right to collect the security interest we had authorized them to collect unknowingly and also revoking the right for them to transfer the note. TILA ( Truth In Lending Act allows XXXX ( XXXX ) days to review Disclosure Documents. The referenced Three Day Right To Cancel must have a trigger to begin. That trigger is, when the Lender has provided the Borrower with ALL of the required Disclosures under TILA, and that the same are true, complete, accurate, and timely provided. Being as the entire loan/mortgage process and Mortgage Note referenced herein and throughout, was obtained by wrongful acts of fraud, fraudulent inducement, concealment and fraudulent misrepresentation, the Borrower has other recourse, right, and cause of action under numerous State and Federal statutes.

Under the Federal Reserve Act Section 29 there are 3 tiers under which you can assess companies for violating the provisions of that act. Under the First Tier any member bank which, and any institution-affiliated party with respect to such member bank who, violates any provision of section XXXX, XXXX, or XXXX, or any regulation issued pursuant thereto, shall forfeit and pay a civil penalty of not more than {$5000.00} for each day during which such violation continues. So if you send your instrument to the trustee and they don't respond or perform within 21 days you can begin to assess them according to the XXXX tier. After that when you send your second notice also known as the notice of dishonor with opportunity to cure you can begin assessing them according to the fees under the XXXX tier. Under the XXXX tier you can charge a civil penalty of not more than {$25000.00} for each day during which such violation, practice, or breach continues. If they are still not performing after your XXXX letter you move on to the final letter which is the notice of default and you assess them according to the fees listed in the XXXX tier. Under the XXXX tier they are required to forfeit and pay a civil penalty in an amount not to exceed the applicable maximum amount determined under subsection ( d ) for each day during which such violation, practice, or breach continues. Under section D you can assess XXXX dollars a day for non member banks and XXXX dollars or XXXX percent of the banks assets for member banks. An assessment is any penalty imposed under subsection ( a ), ( b ), or ( c ). The assessment shall be collected by in the case of a national bank, by the Comptroller of the Currency ; and in the case of a State member bank, by the Board of said bank. Once you have secured a default judgment, file a complaint with the OCC and begin all enforcement measures including arbitration or court actions depending on which is applicable to your situation. All penalties collected shall be deposited into the Treasury. 
Tomorrow XX/XX/XXXX marks 60 days, allowing me to increase the {$5000.00} penalty to {$25000.00}, {$25000.00} x XXXX is {>= $1,000,000}, I will be sending the final letter and notice of default tomorrow and {>= $1,000,000} a day penalty will be assessed for your negligence.

Company response to consumer: Closed with explanation