Consumer complaint received 2025-08-18 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: PENNYMAC LOAN SERVICES, LLC.
State: AL

Complaint narrative:
Dear Consumer Financial Protection Bureau Representative : I am writing to formally submit a complaint against PennyMac Loan Services , LLC ( PennyMac ) regarding their handling of my mortgage assistance requests. My case involves repeated verbal approvals, followed by denial letters, refusal to provide clear justification, and repeated failure to follow through on promised documentationpractices I believe are deceptive and likely violate federal mortgage servicing rules.

Summary of Events Verbal Approval & Advice to Stop Payments I applied multiple times for mortgage assistance options. On two separate occasions, PennyMac representatives verbally approved my request and instructed me not to make the next two monthly payments, assuring me that a formal agreement letter would be sent by mail. No such agreement ever arrived. Instead, I received denial letters stating I did not qualify for any assistance program.

Lack of Explanation & Delayed Appeal Response After filing an appeal, it took several weeks to receive a vague denial letter stating merely that information could not be verified. I contacted customer service asking what specifically could not be verifiedsince no documentation had been requested from mebut the representative could not provide details. I requested a supervisor, who promised a return call within 2448 hours. That call never occurred, and no additional explanation was provided. 

Repeat Scenario with Catch-Up Program I then applied for a different hardship assistance option that would allow a partial payment addition to catch up on missed payments. Again, PennyMac verbally approved me, told me not to pay for two months, and said I would receive the agreement by mail. Once again, I instead received a denial letter with no specifics as to why. 

XXXX XXXX XXXX & Legal Guidance I am currently under XXXX XXXX and, per my attorneys guidance, working directly with the mortgage servicer. My attorney advised that this type of issue is not within the scope of his office.

Unlawful Conduct & Consumer Harm The repeated pattern of verbal approvals, instructions not to pay, failure to send agreement documentation, vague denials, and lack of follow-through from PennyMac appears to me both deceptive and unfair. I have received no meaningful explanation for multiple denials, which prevents me from addressing any deficiencies and seeking legitimate relief.

Prior Cases & Similar Complaints Involving PennyMac Consumer Complaint Examples A homeowner on a mortgage forbearance was told they were protected from credit reporting, yet PennyMac later reported them as delinquent. After the consumer filed with the CFPB, PennyMac admitted the misrepresentation and reversed the reporting.

Another borrower reported being instructed to default by stopping payments, and subsequently suffered escrow/account issues. 
Consumer Financial Protection Bureau Court Case : XXXX XXXX PennyMac Loan Services , LLC In this case, a borrower alleged that PennyMac violated Regulation Xs continuity of contact requirements ( 12 C.F.R. 1024.40 ) under the Real Estate Settlement Procedures Act ( RESPA ). The borrower claimed they were repeatedly transferred and could not speak with a consistent personnel, despite promises of calls back.

vLex Request for CFPB Intervention I request the CFPB take the following actions : Investigate PennyMacs pattern of repeated verbal approvals followed by denials without explanation.

Assess whether PennyMacs conduct violates CFPBs RESPA/Regulation X requirements for clear communication, documentation, and borrower rights to appeal ( e.g., timely written responses ).

Require PennyMac to cease this deceptive practice and comply with all servicing rulesincluding providing written decisions with specific reasons and honoring verbal commitments or properly documenting denials.

Assist me with obtaining a clear explanation for my denials and, if applicable, an opportunity to correct or complete any necessary information to qualify.

Thank you for your attention to this matter. I look forward to your response and appreciate your assistance in helping ensure fair mortgage servicing.

Company response to consumer: Closed with explanation