Consumer complaint received 2024-12-12 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: PENNYMAC LOAN SERVICES, LLC.
State: MI

Complaint narrative:
I am writing to formally file a complaint regarding my mortgage account with PennyMac Financial Services. Despite my efforts to resolve this matter directly with the company, I have not received a response, and the situation has caused significant financial harm to my family. I am seeking your assistance to address and correct the reporting of late payments on my credit report and my wifes credit report. 

In XXXX, my family and I faced an exceptionally difficult series of events that caused severe financial hardship. I was forced to leave my job after being XXXX, and I was subsequently denied XXXX XXXX benefits. My wifes work hours were reduced to part-time, significantly reducing our household income, and our mortgage payment increased by {$400.00} per month. On top of these challenges, we also welcomed our first child, which brought additional financial and emotional responsibilities during an already tumultuous time. 

During this period, we were extremely grateful for the hardship programs offered by PennyMac, which allowed us to defer payments temporarily while navigating these circumstances. I remained in constant communication with PennyMac, submitting all required paperwork on time and meeting every check-in request. Unfortunately, while awaiting approval for an additional hardship program, there was a miscommunication. I was under the impression that payments during this period would not be reported as late ; however, they were, and those late payments now appear on our credit reports. 

Despite these difficulties, I worked tirelessly to resolve the situation, including borrowing funds to catch up on payments. Ultimately, we made the difficult decision to sell our home to prevent further financial fallout. The mortgage has since been paid in full, yet the reported late payments continue to impact our credit. 

The consequences of these inaccurate or unnecessary derogatory marks have been devastating. XXXX XXXX  recently closed a credit card account with a {$20000.00} limit after I paid off the {$4800.00} balance in fullan account that has never been lateciting the " delinquent '' mortgage account reported to the credit bureaus. This closure has further harmed my credit utilization ratio, compounding the damage to my credit score. 

With both my wifes and my credit scores severely affected, we are unable to qualify for another mortgage, even for a more affordable home. We have a XXXX son and are now unsure where to go once the 30 days granted after closing are up. I have always prided myself on being diligent with my financial obligations and rarely, if ever, miss payments. This situation is completely out of character and a result of extraordinary circumstances. 

I respectfully request that the CFPB assist in resolving this matter by urging PennyMac to remove the late payments from our credit reports. This correction would help my family move forward, secure housing, and rebuild our financial stability. 

Thank you for your time and attention to this matter. I truly hope for your assistance in making things right for my family.

Company response to consumer: Closed with explanation