Consumer complaint received 2026-05-12 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: PENNYMAC LOAN SERVICES, LLC.
State: UT

Complaint narrative:
I entered into a 2-month forbearance agreement with Pennymac beginning XX/XX/year>. Under the agreement, I was required to make reduced payments of {$200.00} during the forbearance period, which I attempted to do in compliance with the agreement. Throughout this process, I contacted Pennymac numerous times seeking clarification regarding the terms of the forbearance and what would happen after the 2-month period ended. During multiple conversations with representatives, I specifically communicated that I did not want to proceed with a loan modification or ongoing mortgage assistance plan and instead wanted to return to normal payments after the temporary forbearance period. During several of these conversations, representatives discussed a payment deferral option in which the missed amounts would be moved to the end of the loan term, which I understood would be the resolution after the 2-month forbearance period. Despite these repeated communications, I later discovered that the account had been placed into a mortgage assistance/loan modification review process that I did not intend to pursue. I have since received conflicting information regarding repayment expectations and no representative has been able to clearly explain the current status of the account, what repayment option was actually applied, or why the discussed payment deferral was not completed. Most recently, I received a phone call stating that the full amount owed under the forbearance would need to be repaid immediately. This directly conflicts with prior communications from multiple representatives regarding payment deferral options and has added further confusion regarding the handling and status of the account. At this point, the communication regarding the account has been consistently inconsistent and contradictory. Additionally, the written forbearance agreement specifically states that late fees would not be assessed during the active term of the plan. However, a late charge of {$180.00} was still assessed on XX/XX/year>. I had attempted to make the required {$200.00} reduced payment before the XXXX, but later discovered the payment had not been properly processed by Pennymac, which required an additional follow-up call on XX/XX/year> to have the payment processed again. The agreement also referenced a due date of XX/XX/year> for the reduced payment period, which made the assessment of a late fee during the active forbearance term even more confusing. Throughout this process, I made repeated good-faith efforts to comply with the agreement and communicate directly with Pennymac. However, despite numerous calls and attempts to resolve these issues, I continued to receive inconsistent and conflicting information from representatives. I am requesting a formal review of the account, clarification regarding the current post-forbearance handling of the loan, review of the improperly assessed late fees, and review of why the account was placed into a mortgage assistance/loan modification process despite repeated communications that I did not intend to proceed with that option. Please see attached supporting documentation.

Company response to consumer: Closed with non-monetary relief