Consumer complaint received 2025-04-14 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: PENNYMAC LOAN SERVICES, LLC.
State: IL

Complaint narrative:
In XXXX of XXXX I requested an application be started for a HELOC through the company that bought my initial mortgage, Pennymac. I knew I was on the low but acceptable range of XXXX XXXX ( XXXX ), and had the equity in my house to pull from. I paid the application fee ( $ XXXX {$460.00} ) ( was told they would guide me through the process ), and then the agent immediately spent 2 straight days pushing me to do a cash out refinance at much worse terms, trying to convince me that I wouldn't be eligible, for several reasons. In fact, it was mostly over the fact that she said I needed to use the entirety of the remaining loan to pay off my car, and it would make more sense to do a cash out refinance at the worse rate ( not true, this really doesn't factor in the way CC debt does, and that's how she categorized my car loan for some reason ). I continued through the process and was constantly re-requested of things I had already submitted to their processing team, which, after painfully pointing these things they needed out on the documents, they were accepted. I would get nearly a half hour call a day, if not 2, to ask me to correct the information, and provide x thing, which I would reiterate that was already submitted. They would open it, and deny it within the day, not looking at what I would send in. They then had the appraisal done, and with the appraisal coming in XXXX short of the estimated market value ( 1 bed 1 bath ), I asked to do a reconsideration of value. I then responded to the email with my 3 comps ( within 15 minutes of my house as there aren't many lake neighborhood houses on double lots with no rear neighbors due to a forest preserve and access to the private lake ), and asked if there could be a reconsideration. I sent these in to my loan officer, received no word back. I called, was given no call back, just an email. Received an email about documents to sign that contained the denial letter. I called my loan officer, left a message on the number in her signature, and let her know I didn't hear back from her the whole last week and I felt I was denied my right to an ROV through this process. I even found the house that they comped it to. It was literally sold a month before for the same value as they gave mine, and it is in a much worse area, with worse schools, no lake, no side lot and no comparison to our fit and finish.

I was still pretty upset about this and looked into making a complaint with the CFPB and I was told to try and mediate this with them. Which is fine. I respect that. I took this to the attention of a young woman ( XX/XX/XXXX @ XXXX ), who I believe said she was in TN, and was tracking down my LO and her branch manager for me. Branch manager said she was free for a chat and then ignored my call. Called me back 20 minutes later ( XXXX ) and essentially told me I was insane, and that her LO wouldn't take a knee on my ROV to push me into the cash out refinance. She hands me off to a Tier 3 Manager of Client Relations, who, seemingly did not get the whole story before calling me and emailing me the following Monday, 3/31. She was essentially talking like they had a weird sticky situation with an in process loan, rather than addressing a complaint. She insisted I provide the ROV emails that went unanswered and stated that she can not find any record of me ever leaving a voicemail for my LO after the denial, where I requested to file a complaint. I sent these the unanswered email chain about the ROV 3/31 at 7pm, during my dinner, to the T3 CR manager. She then did not respond or call me at all for 2 weeks. I sent an email looking for follow up last Friday ( 4/11 ), and received an email today, 4/14 saying that they couldn't use the comps I provided them, and too bad, so sad, we wont reconsider. And that wasn't really the point, though, as I had intended to get my money back for the terrible service on my loan application ( what they literally told me I paid for ) and submit a complaint. She insisted when I contacted her by phone today, that there wasn't anything wrong with the fact I wasn't told the comps wouldn't work. She didn't seem to think the 2 week wait from when she saw that email chain with the LO go unanswered, to today, was a problem, either. She said they would rather use average home value sales for similar homes, than comps, which again, stacks the deck against a very rare find in real estate, and I think, between my low loan value, income, and general age, I was discriminated against. I think they saw someone who they could force into a terrible cash out refinance, and pounded that idea until the point it normally works for them with other people my age. They have made it clear, that if you have any kind of unique features to your house, know they don't care. If you live on a house with no rear neighbors but trees, in a lake neighborhood, with a larger than normal lot, they will comp your house to a crack house across town, and try to force you into a cash out refinance to get any loan at all.

As of now, they are refusing to let me know what my complaint number is, and wont actually let me submit the complaint myself in writing, they just keep insisting that it is tied to the loan, which they have denied again, against my wishes of even reopening this.

Company response to consumer: Closed with monetary relief