Consumer complaint received 2022-11-22 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC.
State: PA

Complaint narrative:
PennyMac Loan Services has consistently operated with incompetence, deceit and possible fraud in all of its dealings with me as a customer. Unfortunately, I must file a new complaint ( unrelated to previous issues raised ) regarding my latest dealings with the firm. 

My issues began in XXXX of XXXX, when PennyMac informed me that improvements I had made to my property which was purchased in XXXX of XXXX would count as " significant improvements '' that could qualify my loan for PMI deletion within 2 years of loan origination. At that time, I underwent their standard process, which involves them ordering a Broker Price Opinion ( BPO ) in order for them to establish an updated Loan-to-Value ( LTV ) ratio for the home. At that time, in the 2-year window after mortgage origination, an 80 % LTV along with significant improvements to the property would qualify for PMI deletion. The BPO, performed in XXXX, came in at {$270000.00}, resulting in my LTV at the time being under 72 %. I am attaching this BPO to this complaint. After the BPO came in, PennyMac stated that ( despite their previous communications ) the roof and chimneys would not count as " significant improvements '' per the loan 's owner, XXXX XXXX. We went back and forth on this for some time, and eventually they refunded my BPO fee and apologized for the misinformation they had provided and I moved on, figuring I could try again in a few months after the 2-year mark, after which point a 75 % or lower LTV ( which I knew I already had given the previous {$270000.00} BPO, resulting in a current LTV of 70 % ) would qualify me for PMI deletion. 

In XX/XX/XXXX, I reached back out to them to re-initiate the process as my 2-year loan origination anniversary was XX/XX/XXXX. Rather than relying on the {$270000.00} BPO, which, as stated, places my current LTV at 70 %, they informed me that the previous BPO was outside the needed 120-day window and they would need to order a new one. That was understandable, so I consented ; however, for the new BPO, they utilized a new provider. The BPO this time came back insultingly low at {$220000.00} - {$45000.00} less than the BPO from just 8 months prior, and, shockingly, {$5000.00} less than the appraisal FROM THE TIME OF SALE in XXXX of XXXX. While home price increases appear to have cooled and even dipped slightly throughout XXXX, the inference that my property DECREASED in value by {$45000.00} ( almost 17 % ) in 8 months is patently ridiculous. Even worse, the inference that it decreased by in value by {$5000.00} over the past two years - much of which saw some of the highest price increases in history, and also during which time I put on a new roof and made other improvements to the property, is utterly preposterous. I should also note that the individual supplying them with the BPO didn't even come to the property- he sent an employee to take photographs. Per my review of the BPO, the properties used as comps were in far inferior condition to mine and likely, given market conditions, sold by motivated sellers looking to get out.

It's clear that PennyMac is engaging in fraud, and likely is picking and choosing low-balling appraisers in order to defraud their customers into additional PMI payments. I have to admit, the brazenness of their fraud is almost admirable - claiming a {$45000.00} drop in value over 8 months ( and {$5000.00} drop over two of the hottest real estate market years ever tracked, in a very stable market at that ) is almost unbelievable. I've paid hundreds of extra dollars each month for most of my time as a customer of PennyMac, and this is what I get - continued fraud and deceit.

Company response to consumer: Closed with explanation