Consumer complaint received 2025-12-16 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: PENNYMAC LOAN SERVICES, LLC.
State: VA

Complaint narrative:
Company : Pennymac Loan Services , LLC Loan Number : XXXX Property Address : XXXX XXXX XXXX, XXXX, VA XXXX Loan Type : VA-guaranteed loan pooled in a Ginnie Mae ( GNMA ) security Issue Summary ( short description field ) Mortgage servicer is refusing to properly evaluate a VA payment deferral after a temporary federal government shutdown hardship and is instead conditioning loss mitigation on an interest-rate increase, higher monthly payment, and 40-year loan term. 

What happened ( main narrative ) I am submitting this complaint regarding Pennymac Loan Services, LLCs handling of post-forbearance loss mitigation on my VA-guaranteed mortgage loan, which is pooled in a Ginnie Mae ( GNMA ) security. 

I was approved for a Special Forbearance Plan due to a federal government shutdown that temporarily interrupted my pay as a federal employee. The hardship was temporary and involuntary and has since been resolved. I am able to resume my contractual monthly mortgage payment. 

Pennymacs forbearance agreement expressly states that, upon resolution of hardship, the servicer will work with the borrower to bring the loan current through reinstatement, repayment, or loan modification. 

Despite this, Pennymac has advised that the only available loan modification would : Increase my interest rate Increase my monthly payment Extend my loan term from 30 years to 40 years I am not requesting an affordability-based modification. I have formally declined this proposal in writing and requested evaluation for a VA payment deferral or VA loan modification that defers the forbearance balance to loan maturity, without changing my interest rate, loan term, or monthly payment. 

Pennymac has not provided any VA or Ginnie Mae authority stating that a VA payment deferral or deferred-balance modification is unavailable in my case. 

For VA-guaranteed loans, particularly those pooled in GNMA securities, applicable servicing requirements require evaluation of home-retention options, including payment deferral, when the hardship is temporary and the borrower can resume payments. Conditioning resolution solely on a re-amortizing modification with higher long-term cost appears inconsistent with these requirements. 

I believe Pennymac has failed to properly evaluate all available loss-mitigation options as required under 12 CFR 1024.41 ( RESPA ) and is improperly steering me toward a less favorable outcome.

What I want Pennymac to do ( resolution request ) I am requesting that Pennymac : Properly evaluate my loan under VA loss-mitigation requirements applicable to GNMA-pooled VA loans Consider and offer a VA payment deferral or VA loan modification that defers the forbearance balance to loan maturity without increasing my interest rate, monthly payment, or loan term Provide a written explanation citing specific VA or Ginnie Mae authority if such a deferral is denied Ensure that any approved modification cures delinquency for credit-reporting purposes, consistent with the Fair Credit Reporting Act Why this is urgent If unresolved, I may be forced to choose between : Accepting a modification that permanently increases my borrowing costs despite a temporary hardship, or Remaining delinquent due to improper servicing Neither outcome is consistent with VA and federal mortgage-servicing requirements.

Company response to consumer: Closed with explanation