Consumer complaint received 2025-11-01 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: PENNYMAC LOAN SERVICES, LLC.
State: TX

Complaint narrative:
My husband and I, both XXXX veterans, purchased a home from XXXX XXXX XXXX XXXX XXXX XXXX in Texas, financed through XXXX XXXX as a VA-backed loan. We signed our closing documents with XXXX on XX/XX/XXXX. Shortly after closing, without any written notice, the loan was immediately sold and transferred to PennyMac Loan Services, which violated RESPA 6 ( 12 U.S.C. 2605 ) requiring advance notice of servicing transfer. 

We would have been open to working with PennyMac since they were our prior mortgage servicer, but the loan was sold at an enormously inflated interest rateeffectively over 121 % on a {$370000.00} property that the VA has since appraised at {$330000.00}. The excessive rate and lack of communication made our first payment confusing, causing us to fall behind by one payment almost immediately. PennyMac also placed one of our mortgage payments entirely into escrow without explanation, which forced us to have it reallocatedplacing us two months behind through no fault of our own. 

From the beginning, XXXX XXXX XXXX XXXX XXXX falsely advertised this property as being part of a XXXX XXXX  community. That lagoon was never built, and the developer has since confirmed it was canceled. This amounts to false advertising and misrepresentation under the Texas Deceptive Trade Practices Act ( Tex. Bus. & Com. Code 17.46 [ b ] ), and it destroyed the expected beachfront-style property value that justified the original price. 

We listed the home for sale in XX/XX/XXXX and entered a valid short-sale contract for the VA-appraised amount XXXX {$330000.00}. Since XX/XX/XXXX, we have sent PennyMac every document requestedincluding wet-ink authorization forms to communicate with our realtorbut they keep claiming they need the same forms again. Our realtor and we have email proof of delivery. The VA confirmed the appraisal was completed on XX/XX/XXXX, yet PennyMac continues to delay, stating they are waiting on the appraisal. 

Our assigned representative, XXXX XXXX, rarely responds. Her supervisor only replies after we escalate. On XX/XX/XXXX, the buyers second extension expired because PennyMac failed to act. If the sale collapses, we will tender a deed-in-lieu of foreclosure, as this situation is entirely due to PennyMacs negligence and bad faith. 

We have done everything required to complete this short sale, and it is unfair that we are being penalized by constant delay tactics. The property has been on the market for over seven months, and the loss of the promised lagoon amenity has already diminished its value. 

We request : 1. A full federal and state investigation into XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX, and PennyMac Loan Services for predatory and deceptive practices. 

2. Immediate approval of our short sale and cancellation of any foreclosure proceedings.

3. Full release from the VA loan with no remaining debt or credit damage.

4. Restoration of our VA entitlement and payment of the {$1500.00} relocation assistance confirmed by the VA. 

5. Correction of payment history and restitution for losses caused by these violations.

Company response to consumer: Closed with explanation