Consumer complaint received 2025-07-08 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Fees or costs after closing
Company: PENNYMAC LOAN SERVICES, LLC.
State: VA

Complaint narrative:
Background : I started the process of evaluating refinancing with PennyMac in XXXX when they sent me through email a 5.99 % rate to refinance as I was an existing customer. I called in to take advantage of it and was initially told ( on a recorded line ) that it was not an option and I could not have received that rate. I was informed the only way to honor it was to provide a copy of that rate through email. I proceeded to forward this email to my loan specialist, and they honored it. While refinancing, they charged me a non-refundable and one-time fee to refinance, a cost of {$250.00}. While working with the loan specialist, I was informed of several things that turned out to be false on the recorded line for which Pennymac has taken no effort to rectify them. I have already filed a complaint and have received XXXX communication on it since filing the initial issue in XXXX. On recorded lines, I was informed that I would have 60 days to close due to being out of the country ( this was later reduced to 30 days, but they would not honor it ). I was also told that my XXXX remaining buy-down would be refunded to me at the time of closing. I had asked for it to be applied to the principal amount and was told that was not a possibility. The third issue was that no points or closing costs were included. Finally, my escrow would still be paid before the refinance. I discovered after the loan closed that they used both my buy-down amount and my escrow to pay off the loan. 

Status : I filed a complaint on the buydown funds not being returned to me at closing as promised, in the amount of {$1500.00}. I was told they were used to my payment in refinancing. Furthermore, I received a letter from my country regarding my real estate taxes, which were due in the amount of {$4400.00} ( plus a late fee of {$220.00} ). I thought it was odd. I called Pennymac today and was informed that the escrow amount was used in the payoff amount. They used the full amount in that fund, which was over {$7000.00} in " paying off my loan ''. I had to make the payment to my country to not be fined. Pennymac confirmed that they would make the escrow payment on XX/XX/XXXX, as per XXXX XXXX. I have filed a complaint with Pennymac and gotten shifted around over a XXXX period to XXXX different people, with no one taking ownership of this issue. I have also requested that this be escalated, as it was unethical and illegal, given that those funds were always marked as escrow. 
Furthermore, the loan amount at the time of the refinance was $ XXXX and with the new loan amount its $ XXXX. I was informed that closing costs were removed from this refinance on the recorded line. Furthermore, I was told a payment was not due until XXXX, and now XXXX was required for XXXX. 

Pennymac has told me there is no reference number and case number until they speak with the account specialist. 

I am happy to provide any statements and information to back up the above information I have already filed a Better Business Bureau Complaint and a complaint with PennyMac regarding this issue

Company response to consumer: Closed with explanation