Consumer complaint received 2026-05-18 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: PENNYMAC LOAN SERVICES, LLC.
State: AL

Complaint narrative:
CFPB Complaint Narrative Company Name : PennyMac Loan Services , LLC Account Number : XXXX Property Address Sold : XXXX XXXX XXXX XXXX Complainant Contact Information : Current Primary Residence : XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX, FL XXXX Designated Mailing Address ( For Refund Check ) : XXXX XXXX XXXX, XXXX XXXX AL XXXX Phone Number : XXXX Description of Incident : I am filing this complaint against PennyMac Loan Services for egregious mortgage servicing errors, failure to maintain accurate account records, and a continuous violation of the Real Estate Settlement Procedures Act ( RESPA ), Regulation X, 12 CFR 1024.34 ( b ) for failing to properly return my escrow refund following a loan payoff in XX/XX/XXXX. Background and Account History : On XX/XX/XXXX, I purchased the primary, homesteaded residence located at XXXX XXXX XXXX XXXX as a single woman. My name was on the original deed and mortgage ( attached ). For estate planning purposes, my parents, XXXX XXXX and XXXX XXXX, were included on the deed and mortgage documents. I was the sole resident and made 100 % of the mortgage payments from inception. Following the passing of my parents, I contacted PennyMac in XXXX to remove their names from the account. I completed all required paperwork, paid PennyMacs fee, and provided extensive documentation proving my sole ownership, sole occupancy, and payment history. The Servicing Error : Instead of updating the account to reflect me as the sole surviving borrower, PennyMac erroneously altered the account name to a non-existent legal entity : " The Estate of XXXX XXXX XXXX. XXXX. '' I am the primary borrower, I am very much alive, and no such estate existed or had any legal claim to the property. I immediately and repeatedly notified PennyMac that this naming convention was incorrect, illegal, and factually wrong. PennyMac ignored my requests and refused to correct my account records. The Payoff and Un-Negotiable Refund : I sold the property on XX/XX/XXXX. The warranty deed from the sale ( attached ) clearly proves the property was sold solely by me, in my name, and not by any estate. On XX/XX/XXXX, PennyMac issued a check for my remaining escrow balance. However, due to their uncorrected records, they made the check payable to " The Estate of XXXX XXXX XXXX. XXXX. '' Because this entity does not exist, my financial institution rightfully rejected the check as non-negotiable ( bank refusal letter attached ). Failure to Remedy : Since XX/XX/XXXX, I have contacted PennyMac numerous times to resolve this. On at least four separate occasions, PennyMac representatives explicitly promised that a reissued check would be sent to me in my correct legal name. They have consistently failed to do so. By maintaining inaccurate records, inventing a fictional payee, and failing to reissue a negotiable check to the actual borrower for nearly five years, PennyMac remains in active violation of Regulation Xs 20-day escrow return mandate. They have effectively locked me out of my own funds with no internal remedy. Desired Resolution : I require the CFPB to compel PennyMac to : Immediately void the original check and reissue the full escrow refund balance solely in my name, XXXX XXXX. Mail the physical check explicitly to my designated mailing address : XXXX XXXX XXXX, XXXX XXXX, AL XXXX. Provide a full ledger detailing the exact escrow balance at the time of the XX/XX/XXXX payoff to ensure no funds or interest have been withheld.

Company response to consumer: Closed with non-monetary relief