Consumer complaint received 2019-06-24 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC.
State: MI

Complaint narrative:
Dear CFPB, Please find my Complaint against PennyMac Loan Servicing LLC ( PennyMac ) for fraud with XXXX XXXX XXXX ; theft of the loan ; identity theft ; conspiracy to defraud ; violation of TILA, RESPA, UCC and RICO Act ; and other misconduct. 

On XX/XX/XXXX my loan was purportedly transferred to PennyMac by XXXX XXXX XXXX ( XXXX ). Both suppose to be Subservicers for the loan originator XXXX XXXX XXXX XXXX. ( " XXXX '' ) On XX/XX/XXXX PennyMac sent me a billing statement claiming that PennyMac is " owner/investor '' - which is not true because my loan is a VA loan thus is a subject of very strict XXXX XXXX guidelines ; and all documents are held by XXXX approved Custodian. PennyMac is  not on XXXX-approved Custodians, nor on Subservicer 's list. See attached. 

On XX/XX/XXXX I sent a Debt Validation Request to PennyMac, in accordance with FDCPA. As of today, XX/XX/XXXX PennyMac failed to provide me ANY proof ( except their empty words claiming " ownership '' of my loan. 

I have reasons to believe that I am a victim of a massive fraud with XXXX securities ; Ponzi scheme, theft of the loan and identity theft, since I believe that my loan was stolen from XXXX  custody by XXXX and PennyMac, both are in fact a renamed predatory lender Countywide financial who acts in conspiracy with certain investment Banks, particularly XXXX XXXX, whose executive XXXX is not CEO for XXXX. According to XX/XX/XXXX Report from House Finance Committee, XXXX XXXX, who recently paid {$13.00} XXXX fine and who was an underwriter to XXXXXXXX XXXX {$1.00} XXXX junk Securities in XXXX is currently engaged in " in an unrelenting crime spree '' - which I experienced first hands dealing with current XXXX XXXX RICO enterprise - XXXX, PennyMac and XXXX who sells my identity to predatory lender who swamped me with unsolicited refinancing offers. 

On XX/XX/XXXX I requested PennyMac to validate my debt and their legal rights to collect, particularly provide me a proof of full chain of assignment as required by XXXX Guide. 

PennyMac failed to provide me any proof, thus, I conclude that PennyMac is engaged in an unlawful collection activity, commonly known as racket under RICO Act. 

In my request I specifically asked following questions : Debt Validation notice sent to me on XX/XX/XXXX where you informed that PennyMac Loan Services LLC ( PennyMac ), Servicer for this loan, is the current creditor to whom I owe {$120000.00} ; and the current owner/investor in loan # XXXX, ( but not PennyMac Financial Services Inc., or PennyMac Mortgage Investment Trust ; or PNMAC Capital Management, LLC, or any other PennyMac subsidiary ). According to your Companys XXXX Report, The conventional loans we acquire through our correspondent production operations are purchased, pooled for sale, sold and/or securitized on a fee-for-service basis by another PennyMac Financial subsidiary, PennyMac Loan Services , LLC, which also services most of the loans in our investment portfolio and the loans for which we retain the obligation to service. In short, PennyMac SOLD my debt to other parties which you now try to collect from me ; while you already received a payment for it. However, my loan is XXXX-guaranteed, thus not  conventional and differently regulated, where PennyMac maybe a Servicer, not owner. 

Since you did not attach any documents in support to your Notice which can prove that PennyMac is a legit owner/investor/creditor/beneficiary for my loan with XXXX XXXX  XXXX XXXX ( XXXX ) # XXXX signed on XX/XX/XXXX ; which was sold or otherwise transferred to XXXX XXXX XXXX, XXXX ( XXXX ) as Loan # XXXX on XX/XX/XXXX ; and purportedly sold or otherwise transferred to PennyMac on or about XX/XX/XXXX or earlier as Loan # XXXX ; I respectfully request a validation to confirm if PennyMac is entitled to receive payments of {$120000.00} in the amount of {$850.00} per month. Also, you failed to provide me how this debt was calculated, which I have reasons to believe was incorrect from the origination ; and continue to be incorrect as of today. 

Furthermore, PennyMac said in XXXX Report We have a strong history as a prudent steward of shareholders capital which is not true. PennyMac is in fact a renamed XXXX XXXX who created a biggest housing crisis by their fraudulent lending activities including loans issues by a fake Americas Wholesale Lender which XXXX represented as a incorporated under laws of NY while AWL was never incorporated. It resulted in trillions of $ $ $ losses for investors and taxpayers. PennyMacs President Mr. XXXX is XXXX robo-signer whose stamped signatures are currently pending in numerous bogus foreclosures across the County, which Mr. XXXX must know. PennyMacs co-owner/investor is XXXX XXXX whose entire business is based on predatory foreclosures. In XX/XX/XXXX founder of XXXX XXXX filed a lawsuit against XXXX accusing them in covert criminal conspiracy perpetrated with the specific intent and purpose of gouging enormous profits from the forced foreclosures and confiscation of the homes of hundreds of thousands of struggling families all across the United States. These facts are not consisted with PennyMacs image as a prudent steward of shareholders capital, but create the totally opposite impression of RICO Enterprise on crime-spree. PennyMac is swamped legal cases and customers complaints for fraud, dishonesty, abuses ; corruption ; and the exactly the same scheme with escrow accounts to push borrowers under hardship to foreclose which I experienced with XXXX XXXX XXXX, another branch of XXXX XXXX. Thus, a full documented validation of this debt is reasonable and supported by numerous laws since I believe I am a victim of fraud, conspiracy, corruption and a huge Ponzi scheme. 

Be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 ( b ) RESPA, TILA, UCC Art. 9 ; Section 401 ( a ) of the Sarbanes-Oxley Act ; and other applicable laws that your claim is disputed and validation is requested. 

Please be further advised that I reserve my rights to place on hold all payments during this validation, pursuant to FDCPA which provides me 30 days to respond to your Debt Validation letter ; and 30 days to review your answer ; and RESPA 60-days allowance during Servicing Transfer, presuming that the transfer was lawful. All payments will resume in full, as agreed under the Contract, as soon as this Debt is validated. No late fees must be posted ; no harassing phone calls can be made ; and all overdue amounts must be refunded to me within 30 days from validation.

This is NOT a request for verification or proof of my mailing address, but a request for VALIDATION made pursuant to the above named Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you.

On XX/XX/XXXX I signed contact to purchase a Mortgage loan, governed by UCC Art. 3, secured  by a house as collateral where I was a Borrower/Mortgagor ; and XXXX was a creditor/Mortgagee. I was not informed about my real role as an Issuer/Guarantor for Mortgage-Backed Securities ( MBS ) and many other trading products ; and profits received by selling my name, my signature, my reputation, my home on the open markets several times a day, in small tranches, including but not limited to thin-air securities like Mortgage Servicing Rights ( MSR ). All of these transactions are subjects of SEC Act ; Sarbanes-Oxley Act, Federal Acquisition Regulation ( my mortgage is guaranteed by XXXX XXXX ) ; TILA, RESPA and UCC - all of which require FULL disclosures to borrowers who buy mortgages. 

These disclosures were not provided to me, as well as compensation received from trades on my name and signature. No need to say, nobody offered to share profits from $ $ $ millions produced by sales of unsecured trading products. Each sale represented profits arising from my name used on loan documentation that originated the loan. Hence the profits represent undisclosed compensation that according to TILA and RESPA should have been disclosed at closing. I was never told that my {>= $1,000,000} loan would be generating $ 2+ million in profits for the bank, on top of my $ XXXX interest. Negotiations over the loan would likely be different but in any event the Truth in Lending Act requires the real players ( Investment bank ) and the real compensation ( all profits, fees and commissions ) to be disclosed to me. 

( 1 ) Please provide me a copy of my Mortgage which states that I was informed and gave my consent to be an Issuer/Guarantor for Mortgage-Backed Securities using my name and my house as collateral ; who was the real player in this Transaction  ( I suspect that XXXX was an intermediary who never invested a cent in this loan but to the contrary received a full benefit for their participation even before this loan was closed ). Please provide my the full amount of real compensation, including all profits, fees, commission, ect received from numerous resales and trades of myriad of various securities arose from my names used on the loan. 

XXXX XXXX XXXX ( XXXX ), who was likely acting as XXXX correspondent production operator, offered me monthly payments of {$890.00} as the price for the loan. A big chunk of this payment was my escrow account which included {$1100.00} ( now {$1100.00} ) per year FEMA Flood Insurance, policy # XXXX, for properties located in a flood zone. However, based on consultation and a survey from two local Companies, my property is not even included in FEMA Flood Map, so my {$98.00} per month payment for FEMA 's Flood insurance was obviously a fraudulent attempt to extort more money. Moreover, XXXX intentionally ignored my Map Amendment Letter which I mailed them several times beginning from XX/XX/XXXX ; and did not remove Flood Insurance from my escrow account as of today, which resulted in a significant overpayment. XXXX is well-known for their deceptive servicing practices, specially manipulations with escrow accounts, which resulted in numerous Class Actions, like XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

( 2 ) Please request from XXXX/XXXX all documents based on which my property was determined in a flood zone ; remove flood insurance from my account ; recalculate my payments ; and refund me unjustly collected money. The Map Amendment letter is enclosed. 

XXXX was the original Servicer of my loan where XXXX was a Guarantor. As you know, XXXX does not directly issue, sell or buy pass-through MBS nor does it purchase mortgage loans. Instead, private lenders approved by XXXX XXXX originate loans that are eligible, pool them into securities, and issue the instruments. The bank collects mortgage payments from borrowers and passes payments to XXXX XXXX, which passes them through to investors. All transactions are strictly governed by XXXX XXXX Guide ; documents are held in a special Custodian Account ; all custodians must be XXXX approved ; all Servicers must have a Mortgage Servicing Agreement with XXXX. 

On XX/XX/XXXX, XXXX claimed to be the current Note Holder and the loan is in a pooled security guaranteed by XXXX. On XX/XX/XXXX PennyMac claimed to be owner/investor in my loan with XXXX. I suspect that this information is not true since all Notes must held by a Custodian and XXXX   or PennyMac are not on the list of approved by XXXX  Custodians ; and under no circumstances XXXX can be a current holder on XX/XX/XXXX since they sold or transferred this loan to PennyMac about two months earlier. 

( 3 ) Please provide me proof that you have rights and standing as owner/investor/third-party beneficiary or in other capacity, to collect from me on the Loan XXXX, along with copies of all original documents signed by me, such as a Copy of the Note with full chain of assignments from XXXX to all parties, including PennyMac who claims to be owner of my loan at the same time as XXXX ; the name of the original Trust where XXXX placed my loan to hold as a pooled security ( in fact, myriad of different securities ), similar to PennyMacs Subordination, Acknowledgment and Pledge Agreement as of XX/XX/XXXX, between PNMAC XXXX ISSUER TRUST ( the Buyer ), and PENNYMAC HOLDINGS, LLC, as Pledgor ; Copy of Pooling and Servicing Agreement for the Trust ; the name and contact information for the Issuer ; Indenture Trustee ; Trusts Administrator/Board of Directors ; name of Custodian for XXXX who holds documents related to my loan ; copies of Subordinate Servicers Agreement between XXXX, XXXX and PennyMac ; copies of Transfer of Mortgage Servicing Rights between XXXX and PennyMac. 

( 4 ) Please also provide me a proof that my loan is still in Good Standing with XXXX and was not removed from XXXX custody by misrepresentation and deceit, similar to First Mortgage Corporations scheme to defraud investors in the sale of RMBS guaranteed by the XXXX XXXX. According to SEC investigation, XXXX pulled current, performing loans out of XXXX XXXX RMBS by falsely claiming they were delinquent in order to sell them at a profit into newly-issued RMBS. It is not a secret that PennyMac on XX/XX/XXXX issued XXXX XXXX shares of its Company where used my name and my signature on the loan as an asset/guarantee to attract investors. Please also provide me proof that I was informed about my role as a co-issuer/guarantor for PennyMacs Initial Public Offering ; and how much is my proportional share in this transaction. PennyMac expects to receive about {$190.00} XXXX using my name, my signature and my loan as collateral for this sale. Please also provide Affidavits in support of all charges ; and the full amortization of payments made on this loan, from the origination of the Loan XXXX until the present time, along with applicable interests ; all other documents required from Servicers/Owners/Investors in XXXX XXXX under XXXX XXXX Guide. If my loan was repurchased either by PennyMac or/and XXXX please state the reason why XXXXs sold XXXX securities backed by my loan ; and provide me a copy of re-purchasing Agreement along with the sale price. This is not private information since this information belongs to me as well, due to the Contract signed by me on XX/XX/XXXX with XXXX ; and disclosures mandated by many laws, rules and regulations ( 5 ) Please further explain why I owe you {$120000.00} if PennyMac even IF legitimately obtained rights to this debt already received a full benefit from their purchase, which was facilitated with other people money ( investors ) by secretly reselling my name, signature and reputation on the many times on the open market, without any TILA, RESPA, UCC disclosures about compensation received and without my consent. Moreover, PennyMac obtained additional benefit from selling shares of its Company to investors using my signature on the loan as a collateral for which PennyMac collected over {$21.00} per share, with a total amount XXXX shares, and generated over {$190.00} XXXX, none of which was disclosed to me and asked for my consent ; or shared with me as a profit from trading my name. Looks like PennyMac actually owes me a lot of money from trades, not I owe you anything. 
PennyMacs demand for debt payments claiming to be owner/investor constitutes that PennyMac is a third-party beneficiary under the Contract ( mortgage ) I signed with XXXX. Lender always has higher bargaining power when they sell mortgages and have access to all borrowers information. I do not have the same options since all operations are conducted in the highly secretive manner and create an inequality which put Lender in a greater negotiating position resulting in a disproportionate level of freedom between parties. While I as a borrower/promisor comply with my obligation under the contract and pay my bills, the Promise ( original Lender ) immediately received the full benefit of the bargain. I suspect that XXXX never invested any funds into this transaction and merely worked for XXXX for a fee. XXXX also immediately received a full benefit from their investment within 30 days after they packaged loans into securities, supposedly placed them in Trusts, including their XXXX XXXX XXXX Issuer Trust ( DE Statutory Trust ) where XXXX sells its thin-air Mortgage Servicing Rights in 1031 Exchange manner, in conflict with XXXX XXXX  Guide ; and sold my loan to thousands of parties thus breached their obligation to disclose that here are other beneficiarieswho are not a part of this contract but who act like they are creditor beneficiaries. I did not found if my mortgage specifically named these beneficiaries as a party who expressed their assent to my contract with XXXX as required by UCC, TILA and RESPA.

( 6 ) Please provide me proof that PennyMac is a legitimate beneficiary to my Contract with XXXX ; and at the time of Closing manifested their awareness and assent as third-parties beneficiaries who will receive benefits of this bargain, backed by my home as a security for my loan ; and provided me disclosures under TILA ; RESPA ; and other laws. I am not aware about any PennyMacs detrimental reliance either.

( 7 ) Provide me copies of Purchase Agreements between XXXX, XXXX and PennyMac to prove that my loan with XXXX was actually sold and PennyMac is a legitimate owner/investor, along with copies of any papers that show I agreed to pay what you say I owe you ; the name of Trust which currently holds my loan as a security for benefit of PennyMac ; Trust Pooling and Servicing Agreement ; as required by IRS Rule 26-860G ; and SEC Exchange Act of 1934 ; proof of Trusts valid registration with SEC and IRS Directory ( Pub. 938 ) Show me that you are licensed to collect in my state Provide me with your license numbers and Registered Agent At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major Credit Bureaus ( XXXX, XXXX or XXXX ) this action might constitute fraud under both Federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent I will not hesitate in bringing legal action against you for the following : Violation of the Fair Credit Reporting Act ; Violation of the Fair Debt Collection Practices Act ; Defamation of Character If your offices are able to provide the proper documentation as requested in the following Declaration, I will require at least 30 days to investigate this information and during such time all collection activity must cease and desist. 
Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes any late fees on my loan ; any harassing phone calls ; listing any information to a credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is. 
If your offices fail to respond to this validation request within 30 days from the date of your receipt, I assume that this debt is not valid and your demand to collect was unlawful and void. 
I would also like to request, in writing, that no telephone contact be made by your offices to my home or to my place of employment. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with any third parties, it will be considered harassment and I will have no choice but to file suit. All future communications with me MUST be done in writing and sent to the address noted in this letter by USPS. 

It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records, any information obtained shall be used for that purpose. 

Best Regards, XXXX XXXX

Company response to consumer: Closed with explanation