Consumer complaint received 2025-04-25 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: PENNYMAC LOAN SERVICES, LLC.
State: FL

Complaint narrative:
I am requesting escalation and reinvestigation of CFPB complaint # XXXX regarding PennyMac 's handling of my FHA-insured mortgage as a confirmed successor in interest. PennyMac has repeatedly misrepresented my eligibility for a partial claim, failed to cite any regulatory basis for denial, and is pushing loan modification as the only available option.

In its written response, PennyMac stated : " In accordance with FHA guidelines, there is no option to assume the loan in a delinquent state and then complete a partial claim to resolve the delinquency. '' This is a mischaracterization of my request. I am not attempting to assume the loan and then seek a partial claim. I am requesting a partial claim first, to bring the loan current, followed by assumption. This is consistent with HUD servicing policy.

While prior correspondence may have included multiple concerns, I want to be clear that my primary and consistently stated request has been to resolve the loan through a partial claim as a confirmed successor in interest, in accordance with FHA guidelines. Whether PennyMac offered this option to the original borrower is irrelevant and immaterial. I am not the borrowerI am the successor in interest, and servicers are required under both Regulation X and HUD Handbook XXXX to evaluate me independently for all available FHA loss mitigation options, including a partial claim. 

XXXX has provided no citation of HUD XXXX XXXX, no reference to XXXX Letters, and no identification of investor overlays to justify its position. In fact, FHA policy is clear on this point. 

HUD XXXX XXXX, XXXX ( C ) states : " The Mortgagee must evaluate the confirmed Successor in Interest for all Loss Mitigation Home Retention Options as if the Successor in Interest was the Borrower. '' XXXX XXXX XXXX reiterates that successors in interest must be reviewed for all loss mitigation options, including partial claims, regardless of whether they have formally assumed the loan. 

In a phone call, PennyMac representative XXXX ( extension XXXX ) stated that even if I were approved for a partial claim, the balance would be due immediately upon assumption. This is false. Partial claims are subordinate, non-interest-bearing notes repayable only upon sale, refinance, or payoff of the FHA-insured mortgage.

PennyMacs strategy appears to be to mislead, delay, and steer borrowers exclusively into modification. All paperwork and submission portals provided to me refer only to loan modification. I have made it repeatedly clear that this is not an acceptable option, as my interest rate is below 3 percent and modification would increase costs and destabilize my finances.

This handling violates the intent and letter of Regulation X under 12 CFR 1024.35 and 1024.41. It reflects a pattern of obstruction and misrepresentation, not a legitimate application of HUD servicing policy.

I am requesting the following : 1. That this matter be escalated to CFPB enforcement or supervision.

2. That CFPB refer this matter to HUDs National Servicing Center for immediate review.

That PennyMac be required to produce : A. The specific and applicable HUD, FHA, or investor policy provision that the servicer asserts prohibits a partial claim prior to assumption. This must include a direct citation ( e.g., Handbook section, Mortgagee Letter, or investor overlay ), not a generalized reference to broad categories such as Section III of the FHA Single Family Housing Policy Handbook or similar non-specific language.

B. Clarification of the terms under which it asserts a partial claim would be due upon assumption.

C. A written correction of prior misstatements.

D. That PennyMac be directed to review me for a partial claim as a confirmed successor in interest and provide the appropriate paperwork to evaluate this option in accordance with FHA rules.

This is not a misunderstanding. It is a deliberate withholding of a legally mandated loss mitigation option. I am seeking to cure the delinquency using the tools FHA has established, and PennyMac is preventing that.

Company response to consumer: Closed with explanation