Consumer complaint received 2020-06-05 00:00:00
Product: Debt collection — Mortgage debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: PENNYMAC LOAN SERVICES, LLC.
State: MI

Complaint narrative:
Dear CFPB ( cc Senate, AG, media ) Please find my complaint against PennyMac Loan Services , LLC for theft, including identity theft, fraud, illegal collection, racket, conspiracy to defraud, false claims, and other crimes. 

On XX/XX/XXXX PennyMac approached me falsely claiming to be a " buyer/investor '' in my loan as well as a Servicer for some mysterious XXXX XXXX XXXX. 

On XX/XX/XXXX PennyMac XXXX XXXX sold to investors over {$190.00} XXXX worth of securities CERTIFICATES which I have reason to believe were backed by my stolen identity after PennyMac robbed XXXX XXXX ( former XXXX XXXX XXXX/XXXX   ) whose system Big Banks use to assign passwords to their sham conduits like XXXX XXXX XXXX  and PennyMac. Anyone who knows about foreclosure litigation and securitization of residential debt knows that the only way the banks could succeed is if they had a central repository and central command center from which all documents were fabricated and all instructions were issued. 

For nearly all loans the central command was XXXX XXXX XXXX, aided by XXXX. While XXXX is technically defunct and XXXX XXXX went to XXXX  taking one for the team, the functions of XXXX  remained the same. 

XXXX  changed its name to XXXX XXXX. XXXX at XXXX XXXX include data processing on virtually all residential loans subject to claims of securitization many of which are represented by data on the MERS  Platform which is a workaround to hide separate split transfers of the debt, the note and the mortgage or deed of trust. 

The systems on XXXX/XXXX  XXXX are designed for the the express purpose of presenting consistent data in foreclosure claims. As such it also enables the rotation of apparent servicers, none of whom perform bookkeeping functions even if some of them interact with borrowers as if they were actually the servicers. 

The rotation of servicers comes with the false representation and illusion of boarding in which the process is falsely represented as meaning that the new servicer inspected, audited, reviewed and input the data into their own system. None of that occurred. Instead the new servicer merely gained access to the same XXXX  XXXX  as the last servicer with a new login and password. 

All evidence shows that the functions for fabricated, forging and robosigning documents continue to be performed under the direction of XXXX/XXXX  XXXX which receives all instructions from various investment banks who have each started their own securitization scheme masking apparent trades in the secondary market for loans and trades in the shadow banking market where private contracts are regularly traded without any securities regulation. 

PennyMac decided to create its own system, similar to XXXX XXXX, and STOLE their data to use it for its own unjust enrichment purposes. 

It is evident that information about my loan was obtained by PennyMac in illegal manner while they can not even respond to the very basic question - who SOLD PennyMac my loan. 

Because nobody sold it. Bear to repeat, PennyMac and its co-conspirators, XXXX XXXX XXXX, used its access to XXXX XXXX data to STEAL information about certain loans, falsely claim them as Defaulted Loans, so PennyMac can resell this information to its own investors without paying fees to XXXX XXXX. 

Based on the law suit filed by XXXX XXXX  against PennyMac in XX/XX/XXXX, XXXX XXXX  XXXX  XXXX  delivers a central, comprehensive platform for mortgage and home-equity loans. It automates multiple areas of loan servicing from loan onboarding to disposition, including setup and maintenance, customer service, cashiering, escrow administration, investor accounting, and default management. 

In other words, ALL money-related activities such as collection of payments, escrow administration, Notices of Default- are handled by XXXX XXXX who uses self-proclaimed servicers identity to defraud borrowers like myself. 

It is evident from most recent correspondence where my Escrow Review and Approval for Forbearance were mailed to me from XXXX XXXX Florida, zip code XXXX, where XXXX  has no offices, while the address on the envelope indicates that they were mailed from PennyMac office in XXXX XXXX CA to create a false impression that the review and approval came from PennyMac, not XXXX XXXX according to the case, serves large banks who issue securities. 

The case further stated that PennyMac is one of many mortgage servicers to which XXXX XXXX has granted a limited right to access and use the XXXX XXXX for processing mortgage transactions, in exchange for and subject to the payment of contractual fees and compliance with other contractual obligations. 

Which contradicts with PennyMac 's claim regarding their " ownership '' of my loan ; and " purchase '' of my loan from some mysterious Seller. PennyMac merely received FEES for posing as a " Servicer '' - while PennyMac decided to enrich themselves further by stealing borrowers data from XXXX XXXX to enrich themselves. 

PennyMac must keep all informtion regarding XXXX XXXX  involvement secretive from the borrowers, which is a violation of TILA and RESPA law ; while the main function of BK is to defraud borrowers whose Titles are fatally damages via series of illegal transfers to impersonatos like PennyMac. 

According to XXXX XXXX, It is essential to XXXX XXXX that this system and the technology that drives it be kept confidential by XXXX XXXX  customers, such as PennyMac. 

Because the following specific aspects of the XXXX XXXX contribute to its unique value : data schema and fields ; user experiences and interfaces ; files and records ; transaction-type codes and sequence codes ; input, processing and output transactions ; workstation guides ; technical support services ; and documentation of the foregoing. Data collected are organized in specific files incorporated in a table that includes multiple records, each of which is a row that also includes a series of fields or cells, each of which has a specific name and position range. The confidential logic and business rules that drive the collection and manipulation of the data provide XXXX XXXX a competitive advantage. 

In other words, based on XXXX XXXX system, borrowers DATA can be manipulated by different companies, which was apparently used by XXXX and PennyMac - to pass my information to PennyMac and their own scheme to defraud borrowers and investors. 

Another confidential and valuable component of the XXXX XXXX is the XXXX XXXX XXXX ( XXXX ). XXXX uses confidential and proprietary logic that translates data from an origination system into transactional dataincluding tax, insurance and payment recordsthat allow loans to be loaded into the XXXX XXXX. Unlike the XXXX XXXX generally, XXXX is provided to customers in executable code, but with the same restrictions on use that apply to other aspects of the XXXX  XXXX. 

Which makes absolutely clear that PennyMac only has an access to my data and payment records - with limited use of the information and systemit to perform their job functions, by using unique user names and passwords to access the XXXX XXXX and related documentation.without ANY other capacity such as " owner/issuer/buyer '', ect. 

This lies are created by PennyMac employee XXXX who is TRAINED to defraud homeowners, as stated in the case ( PennyMac shall conduct employee training to protect the confidentiality of the information ). 

According to XXXX XXXX, The parties relationship began in early XXXX, when PennyMac and XXXX XXXX predecessor-in-interest, XXXX XXXX XXXX , XXXX ( XXXX ), entered into the Master Agreement by which PennyMac was granted a limited right to access and use the XXXX  XXXX  to process mortgage loans. 

Worth to emphasize - LIMITED RIGHT TO ACCESS. 
Which is inconsistent with PennyMac 's claim regarding its " ownership '' According to XXXX XXXX, Shortly after the Master Agreement was executed, PennyMac was given access to the XXXX  XXXX  and related confidential documentation, which at all relevant times was hosted and maintained by XXXX XXXX  and its software developers within either Florida or Virginia. 
The Master Agreement granted PennyMac a limited right to access and use the XXXX XXXX for specific uses and purposes related to the processing of mortgage transactions by PennyMac, in exchange for payment of access fees. 

Unbeknownst to XXXX XXXX, however, PennyMac began to develop, through its access to the XXXX  XXXX  and related support services, its own modules that are intended to mimic the XXXX  XXXX. These modules were specifically designed to mirror the architecture, data structure, and functioning of the XXXX XXXX and, as XXXX XXXX believes, were run in parallel with the XXXX XXXX so that it could be used, not for the limited purposes permitted by contract, but instead as a benchmark against which to test and fine-tune the results produced by the facsimile modules, with the goal of eventually replacing the corresponding modules of the XXXX  XXXX. 

It is very evident why nobody claims to be a " Seller '' of my loan to PennyMac. 

According to the case, PennyMac concealed its intentions and efforts from XXXX XXXX, regulators, government-sponsored enterprises, and other third-party providers. 

This is why XXXX XXXX has no information regarding PennyMac role as an " Issuer ''. 

PennyMacs parallel development was carefully planned to incrementally incorporate XXXX  functionality into PennyMacs imitation system, in order to avoid detection. From the XXXX XXXX confidential material to which it had been given access, including the XXXX  application, PennyMac was able to extract highly useful information about the functionality and structure of the XXXX XXXX. Incredibly, it is now apparent that it did this in part through third parties who were not authorized to access the system but who were improperly provided credentials by PennyMac. It gleaned additional information by sending queries to XXXX XXXX  customer support system. 

In other words, PennyMac uses sytemic thievery to defraud homeowners whom they send bogus demands for payment uner glimpse to be " owner '' of the debt ; but also co-conspirators like XXXX XXXX whose system is used by Big Banks to defraud homeowners with illegal collections and foreclosures. 

As XXXX XXXX stated, data from multiple months in XXXX and XXXX indicate that PennyMac processed tens of millions of different transactions using the XXXX XXXX for fewer than two million loans. This ratio of more than one transaction per loan per day over an entire month dwarfs the typical number of transactions processed in the normal course of business for a similarly situated mortgage-loan servicer. Even during its final months on the XXXX XXXX, PennyMac continued to run an unexpected pattern of cash transactions through the XXXX XXXX, reflecting testing of the XXXX XXXX  results against those produced by its own system. 

I once again demand PennyMac to provide me the name of the Seller of my loan ; proof of legit transfer, REFUND of all illegally connected payments ; treble damages for fraud ; treble damages for racket ; and punitive damages for extreme emotional distress, in the total amount no less than {$50.00} ( XXXX ) XXXX, to prevent others from similar conduct. 

CC. XXXX XXXX, as co-conspirator REgards, XXXX XXXX

Company response to consumer: Closed with explanation