Consumer complaint received 2026-03-25 00:00:00
Product: Mortgage — USDA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: PLANET HOME LENDING, LLC
State: MO

Complaint narrative:
To Whom It May Concern : My name is blank, and USDAbacked mortgage borrower under Loan # blank. I am filing this formal grievance due to Planet Home Lendings refusal to release or disburse the insurance proceeds in a reasonable manor that XXXX XXXX issued to them after catastrophic fire damage to my home. My insurer, XXXX XXXX, has agreed to pay under Claim # blank totaling {$360000.00}, intended solely for the repair and restoration of my home. Despite providing the necessary documentation and on XX/XX/year> received proceeds in the amount of {$260000.00} from XXXX XXXX, ( XXXX XXXX will release the balance once they see that the repairs are underway ) Planet Home Lending has withheld these funds and will only disperse a maximum of {$20000.00} at one time, which must be followed up by an inspection that takes a minimum of a month for them to process due to all of their Policies and Procedures. My contractor is not opposed to inspections. In fact, XXXX XXXX ( XXXX XXXX in which the home resides ) is well known for its strict building codes so my contractor is well accustomed to them and my home will have to be rebuilt under these strict codes. But these egregious {$20000.00} maximum draw restrictions are preventing my home from being repaired and leaving the home uninhabitable. Rain is leaking into the basement ( where the intense heat caused a crack in the foundation ) causing more damage and will eventually create a total loss of the home. The insurance company will not cover any of this ongoing damage because of Planet Home Lending and USDAs neglect. Servicer NonCompliance and Harm Planet Home Lendings obligations under USDAbacked loan servicing guidelines require timely processing and monitored draw disbursements for losses over {$20000.00}. Attempts to resolve this through Planet Homes Loss Claims Department ( XXXX ) have resulted in only being told that {$20000.00} is the maximum draw they will pay. My contractor will not agree to do the work under these egregious constraints nor will any other contractor. The fact no one from XXXX XXXX, other financing institutions, all of the insurance contractors that I have spoken with, nor anyone else I know for that matter, has ever heard of such ridiculous constraints. The only conclusion that I can come to is possibly either fraud because they intend for my house to never be restored and could be sitting on my funds along with numerous other claimants earning interest or possibly discrimination because I am a single mother of XXXX children and they assume I can be bullied into tolerating their inhumane treatment. Im stuck living in a motel with XXXX kids while those making these decisions get to go to their respective homes each night. Requested Actions I respectfully request : 1. Immediate USDA intervention to compel Planet Home Lending to comply with required lossdraft procedures for USDA loans. 2. Immediate release or monitored disbursement of the insurance funds tied to Loan # blank so repairs can begin. 3. Formal investigation of Planet Home Lendings handling of this claim and other USDA claims to determine if they have a practice of discrimination or of any fraud. 4. Written confirmation from Planet Home Lending acknowledging corrective steps. 5. Review by USDA OIG if mishandling or abusive servicing practices are found. Impact The home remains uninhabitable due to Planet Home Lendings refusal to release funds already issued by XXXX XXXX for the sole purpose of repair.

Company response to consumer: Closed with explanation