Consumer complaint received 2026-03-04 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Lien release
Company: PENNYMAC LOAN SERVICES, LLC.
State: FL

Complaint narrative:
I am a veteran homeowner. My VA guaranteed mortgage ( Loan # XXXX ) was serviced by PennyMac Loan Services LLC. PennyMacs own online portal confirms a current balance of {$0.00} and reflects a last payment received on XX/XX/XXXX. PennyMac reported to all three credit bureaus in XX/XX/XXXX that the account was closed, transferred, and sold to another lender. I never received any written notice of a servicing transfer from either PennyMac or XXXX XXXX XXXX XXXX as required under RESPA Section 6, 12 U.S.C. 2605. I discovered the transfer entirely by accident. Without my knowledge, consent, or any new authorization, XXXX XXXX XXXX XXXX withdrew {$990.00} from my XXXX XXXX XXXX XXXX checking account on XX/XX/XXXX and again on XX/XX/XXXX, using banking credentials I had provided exclusively to PennyMac. I never contracted with XXXX, never enrolled in any payment program with XXXX, and never authorized XXXX to access my bank account in any way. XXXX letter dated XX/XX/XXXX falsely claims I chose to enroll in their AutoPay program. The first unauthorized withdrawal occurred XX/XX/XXXX one day before this letter was even sent making enrollment impossible. XXXX letter dated XX/XX/XXXX claims the payment was returned by my financial institution. This directly contradicts my bank records confirming the funds were withdrawn without authorization. On XX/XX/XXXX, I submitted notarized Qualified Written Request letters to both PennyMac and XXXX demanding loan payoff documentation, servicing transfer records, ACH authorization records, complete payment history, identity of the investor or trustee, chain of title of the original promissory note, and confirmation of Satisfaction of Mortgage recording with XXXX XXXX. On XX/XX/XXXX, I submitted a notarized Regulation E dispute letter to XXXX XXXX XXXX XXXX disputing the unauthorized withdrawals. PennyMac acknowledged receipt of my QWR on XX/XX/XXXX but has provided no substantive response. As of XX/XX/XXXX the 30 business day statutory deadline under RESPA has expired. PennyMac is in active violation today. XXXX acknowledged receipt on XX/XX/XXXX but self-extended their response deadline to XX/XX/XXXX, exceeding the 30 business day statutory limit under RESPA. I have personally verified with the XXXX XXXX XXXX XXXX XXXX that no Satisfaction of Mortgage, no Assignment of Mortgage, no Release of Lien, and no transfer documents of any kind have been recorded against my property at XXXX XXXX XXXX XXXX XXXX XXXX XXXX by either PennyMac or XXXX. Under Florida Statute 701.04 PennyMac was required to record a Satisfaction of Mortgage within 60 days of the XX/XX/XXXX payoff date. The recording deadline was XX/XX/XXXX. As of XX/XX/XXXX the penalty is {$500.00} per day payable directly to me as the homeowner. {$2000.00} has already accrued and grows daily. My three bureau credit report confirms this is a Veterans Administration guaranteed real estate mortgage. PennyMac is reporting the account as closed with a {$0.00} balance. XXXX is simultaneously reporting the same loan as open with a balance of {$240000.00} and a monthly payment of {$1900.00} on all three bureaus XXXX, XXXX, and XXXX. Both reports were made in XX/XX/XXXX about the same property. These two reports directly contradict each other and can not both be true. XXXX has no recorded legal claim to my property whatsoever. Nothing has been recorded at XXXX XXXX. Yet XXXX is reporting a {$240000.00} mortgage balance against my property on all three credit bureaus, preventing me from selling or refinancing my home. This is a VA guaranteed mortgage. Neither PennyMac nor XXXX has confirmed whether the Department of Veterans Affairs was notified of this transfer or payoff as required under VA Lender Handbook guidelines. Our VA entitlement has not been restored despite the loan showing a {$0.00} balance. We are unable to use our VA benefit for any future transaction because of PennyMacs failure to properly close out the loan guarantee. The loan appears to have been securitized. XXXX own correspondence states they are servicing the loan on behalf of an investor or trustee whose identity they have refused to disclose. If the original lender was already paid full value by investors when the loan was securitized, and payments have been collected throughout the life of the loan, and the loan is now showing as paid off, there is a serious question of who has legal standing to collect anything further and whether any monies collected after the securitization and subsequent payoff must be returned. Neither company has clean hands in this matter. PennyMac violated RESPA by failing to provide transfer notice and failing to respond to my QWR within the statutory deadline. PennyMac violated Florida Statute 701.04 by failing to record the Satisfaction of Mortgage. XXXX violated Regulation E and XXXX XXXX rules by taking unauthorized payments from my bank account. XXXX made false written statements about my enrollment in their AutoPay program. XXXX is reporting false and contradictory credit information. Neither company has identified the investor or trustee. Neither company has produced the chain of title of the original promissory note. Neither company has confirmed VA notification. I am a veteran homeowner who did everything right. I made my payments faithfully. I followed the proper dispute process. I submitted notarized legal requests. I have been stonewalled, had money taken from my account without authorization, had my property title clouded, had my VA entitlement tied up, and received false written statements from both companies. I am asking the CFPB to compel full compliance and full restitution immediately.

Company response to consumer: Closed with explanation