Consumer complaint received 2025-06-09 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: TX

Complaint narrative:
This complaint supplements my previous submission regarding my mortgage serviced by PennyMac Loan Services ( Loan # XXXX ) for the property at XXXXXXXX XXXX XXXX XXXX XXXX XXXX 

In their response dated XX/XX/XXXX, PennyMac admitted to making over {$26000.00} in unauthorized property tax disbursements between XXXX and XXXX, despite a valid and active XXXX tax deferral on file with XXXX XXXX. These disbursements were made without my consent and directly violated state law and federal servicing regulations. 

RESULTING HARM : My monthly mortgage payment was inflated to over {$3500.00}, which I could not afford. 
I was pressured into signing a loan modification in XX/XX/XXXX based on a falsely inflated escrow balance including over {$18000.00} in delinquent charges now acknowledged as caused by PennyMacs own errors. 
I was denied an XXXX disaster loan for critical tornado damage repairs after being pre-approved, due solely to the inflated mortgage payment. 
I experienced severe emotional distress, and was undergoing XXXX and XXXX treatments due to trauma and mental health decline worsened by PennyMacs conduct. 

CONTEXT MATTERS XXXX  XXXX & XXXX : I am a XXXX XXXX XXXX, granted a protective order and divorced under Texas cruelty laws due to my ex-husbands XXXX XXXX XXXX XXXX 
My children and I fled the home in XX/XX/XXXX, living in a hotel for 60 days. 
I was approved for the Texas XXXX XXXX XXXX XXXX, but PennyMac repeatedly ignored my protected status, despite full documentation.

RESPONSE FROM PENNYMAC : In their XX/XX/XXXX letter, XXXX : Admitted wrongdoing Promised to unwind the invalid modification Refunded {$11000.00} Attempted to minimize the harm by offering me a {$100.00} gift card as a courtesy for the hardship I endured due to their repeated violations This gesture is not only inadequate but insulting given the scale of financial and emotional damage, including lost disaster funding, inflated debt, and the threat of foreclosure on a home that was my only safe space after escaping abuse. 

VIOLATIONS COMMITTED : RESPA XXXX ( k ) ( XXXX ) ( C ) Failure to properly manage escrow accounts TILA Misrepresentation of loan balance and modification terms Texas XXXX XXXX XXXX XXXX Paying deferred taxes in violation of law Fair Housing Act & ECOA Disregarding protected XXXX and survivor status Federal Disaster Relief Law Blocking access to recovery funds due to false financial data Failure to accommodate XXXX and trauma history resulting in undue hardship RECENT ABUSE : In a recent call, I was told that my payment wasnt inflated and that my loan modification was still active contradicting their own written admission. The agent spoke dismissively and triggered an emotional breakdown. I ended the call in tears. 



WHAT I AM REQUESTING : XXXX. Full rescission of the XX/XX/XXXX modification XXXX. Correction of escrow balance to remove all improper tax disbursements XXXX. Restoration of my original mortgage payment XXXX. Formal commitment that no tax payments will be made while my deferral remains active XXXX. A full regulatory investigation into PennyMacs handling of this case, especially regarding vulnerable borrowers I have attached the XX/XX/XXXX letter from PennyMac as proof of their admission.

Company response to consumer: Closed with explanation