Consumer complaint received 2026-03-09 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: PENNYMAC LOAN SERVICES, LLC.
State: GA

Complaint narrative:
On XX/XX/XXXX, a VA-guaranteed mortgage loan was originated by The Federal Savings Bank ( TFSB ) for {$250000.00}. On the same day as closing, the Promissory Note was endorsed " Without Recourse '' to XXXX XXXX with no disclosure to the borrowers at closing. No notification of this transfer was received until XXXX XXXX XXXX XXXX to XXXX days after the transfer, violating RESPA 's XXXX notice requirement. On XX/XX/XXXX, XXXX sent a payment notice directing the borrowers to pay {$1500.00} to XXXX directly, with no clear disclosure the loan had been sold. On XX/XX/XXXX, XXXX collected that {$1500.00} mortgage payment at their own address under their own loan reference number contradicting their later court representation of " no involvement '' after XX/XX/XXXX. The XX/XX/XXXX transfer letter from XXXX XXXX XXXX explicitly states the transfers " have not been publicly recorded. '' At closing, XXXX required the borrowers to sign a Waiver of Borrowers ' Rights Rider that waived XXXX XXXX XXXX Amendment rights to notice and judicial hearing before nonjudicial foreclosure. The CFPB 's own Supervisory Highlights Issue XXXX, XXXX XXXX, XXXX XXXX identified this exact type of instrument as deceptive. The borrowers were never notified of this finding. The waiver is also defectively notarized it contains a signature on a line labeled " XXXX '' with no acknowledgment language, no seal, and no commission number and it contains a false attestation that the borrowers had been afforded an opportunity to consult independent counsel, which was not true. The closing was conducted in the borrowers ' living room during COVID-19 with no independent counsel present. On XX/XX/XXXX, XXXX XXXX XXXX issued a Payoff Demand Statement. XXXX days later, on XX/XX/XXXX, MERS executed an Assignment of Security Deed on behalf of XXXX through document preparation company XXXX XXXX ( Nationwide Title Clearing ), XXXX XXXX, FL, signed by XXXX XXXX as " Vice President '' of MERS. This assignment was void because XXXX had no interest to assign since XX/XX/XXXX. The assignment was executed in XXXX XXXX, Florida the XXXX XXXX as XXXX XXXX and directed to be returned to XXXX XXXX XXXX, the foreclosing party. On XX/XX/XXXX, XXXX XXXX XXXX, through foreclosure counsel XXXX XXXX XXXX, foreclosed on the property. No evidence exists that mandatory VA pre-foreclosure loss mitigation was offered as required under 38 C.F.R. 36.4350. On XX/XX/XXXX XXXX days after foreclosure the VA 's property management XXXX XXXX sent written notice stating the property " is now owned by the XXXX of XXXX XXXX through loan termination action. '' XXXX XXXX XXXX simultaneously retains the deed. XXXX VA XXXX XXXX XXXX issued XX/XX/XXXX confirms the VA recorded a loss on this loan. These actions resulted in the wrongful foreclosure of the borrowers ' primary residence while federal guaranty funds may have been improperly claimed. This matter is currently on appeal in the Georgia XXXX XXXX XXXX, XXXX XXXX. XXXX. A full detailed complaint with XXXX exhibit references is attached.

Company response to consumer: Closed with explanation