Consumer complaint received 2024-03-13 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: PENNYMAC LOAN SERVICES, LLC.
State: PA

Complaint narrative:
On XXXX XX/XX/XXXX and your CFPB 'S XXXX  department on XX/XX/XXXX was sent to PennyMac Mortgage Demand for COVID-19 Recovery Loss Mitigation COVID-19 LOSS MITIGATION OPTIONS FOR FHA HOMEOWNERS The Federal Housing Administration ( FHA ) has expanded the COVID-19 Recovery Options for all borrowers in default or imminent default, including non-occupant borrowers, regardless of the reason for default. If you are experiencing a financial hardship impacting your ability to make on-time mortgage payments, contact your mortgage servicer as soon as possible to discuss your options. 

If you have an FHA-insured mortgage, the following options may be available to you. 
Forbearance for Borrowers Mortgage forbearance is when you have worked with your mortgage servicer to temporarily pause or reduce your monthly mortgage payments. XXXX XXXX XXXX XXXX XXXX -Unemployment is available when one or more of the borrowers have become unemployed and this loss of employment has negatively affected your ability to continue to make your monthly mortgage payment. After the completion or expiration of the forbearance period your servicer will review the COVID-19 Recovery Options available to you to resolve the outstanding amounts of the reduced or suspended payments. 

COVID-19 Recovery Loss Mitigation Options The COVID-19 Recovery Loss Mitigation Options provide borrowers with options to bring their Mortgage current and may reduce the XXXX XXXX XXXX XXXX of their monthly mortgage payment to reduce the risk of re-default and assist in the broader COVID-19 recovery. FHA offers COVID-19 Recovery Options to borrowers who are on a COVID-19 Forbearance, or borrowers who did not participate in a COVID-19 Forbearance who are 90 days or more delinquent through XX/XX/XXXX. Non-Borrowers who acquired title through an exempted transfer are not eligible for the COVID-19 Recovery Options and must be evaluated for FHAs Standard Loss Mitigation Options . 

COVID-19 Advance Loan Modification ( ALM ) : The COVID-19 ALM is a permanent change in one or more terms of a borrower 's mortgage that achieves a minimum XXXX XXXX reduction to the borrower 's monthly principal & interest ( P & I ) payment and does not require borrower contact. Servicers will proactively mail the modified mortgage documents to borrowers who can achieve the required payment reduction. If the borrower chooses to accept the COVID-19 ALM they will only need to sign and return the mortgage modification documents sent to them by their mortgage servicer. 

We let PennyMac know that they were violating CFPB 's RESPA REGULATION X EARLY INTERVENTION AND LOST MITIGATION REQUIREMENTS FOR LOANS BACKED BY FHA AND IT'S FHA 'S STANDARD LOS MITIGATION OPTION THAT PENNYMAC HAS REFUSED AND NEVER OFFERED SAID BORROWERS. Petitioner and Borrower profess that they were never given a FAIR Opportunity to Recover Post-Pandemic by PENNYMAC LOAN SERVICERS LLC whatsoever. In accordance with 12 C.F.R sect ( s ) 1024.39 and 1024.41 For Homeowners exiting forbearance and experiencing a Payment Hardship ( CREATED LARGELY BY PENNYMAC LOAN SERVICES LLC & THE PANDEMIC ). See 86 Fed. Reg. 34.848 ( XX/XX/XXXX ). There where and still are payments made that was missing and unaccounted for ; Unenforceable junk fees and added interest added to the Acct that the Laws of the CARES ACT PROHIBITED AND PENNYMAC attempted to fraudulently add them anyway. 

Petitioner has made ( 2 ) two separate previous complaints : XXXX XXXX on XX/XX/XXXX ; and XXXX as filed on XX/XX/XXXX ; that bear witness to the fact and claim that PENNYMAC LOAN SERVICER has been intentionally & willfully blocking any and ALL RECOVERY EFFORTS SUCH AS THE XXXXXXXX XXXX XXXX XXXX, FHA STANDARD LOSS MITIGATION OPTIONS -COVID-19 RECOVERY OPTIONS. 

PENNYMAC HAS BROKEN FEDERAL LAWS & COMMITTED ACTS OF FRAUD UPON THE COURT FOR ITS MISHANDLING AND TREATMENT AGAINST THESE BORROWERS AND HAS PREVENTED POST-PANDEMIC RELIEF & RECOVERY FOR THESE BORROWERS ; THEREBY FAILING TO MEET THE STANDARDS IMPOSED BY THE RULE. ESPECIALLY FOR " FEDERALLY RELATED '' MORTGAGES SUCH AS THE ONE ON THIS LOAN AS DEFINED BY RESPA. SEE XXXX, MORTGAGE SERVICING AND LOAN MODIFICATIONS SECT. 3.2 " FEDERALLY RELATED '', which required this servicer to comply with the additional procedural safeguards before initiating any foreclosure sale and this Servicer completely and willfully came into conflict with these rules for its FAILURE TO : PROVIDE these borrowers additional procedural safeguards before initiating the illegal foreclosure case of XXXX ; and failed to do the required reasonable diligence at the end of the intentional falsification of forbearance ending XX/XX/XXXX. VIOLATING THE CFPB 'S SERVICING RULE PROHIBITING A SERVICER FROM INITIATING FORECLOSURE UNTIL THE BORROWER. PENNYMAC LOAN SERVICES DO NOT CARE NOR WORRY IT'S SELF ABOUT FOLLOWING THE LAW. PENNYMAC UNLAWFULLY FILED THIS ILLEGAL FORECLOSURE SUIT XX/XX/XXXX during the Height of the XXXX XXXX XXXX FOREBEARANCE PERIOD. BORROWER ( S ) ' WERE NEVER PROVIDED PRE-FORECLOSURE PERIOD TIME ALLOTMENT AND NO LAWFUL REVIEW OF ANY LOST MITIATION OPTIONS BEFORE THE COMMENCEMENT OF THE ABOVEMENTIONED ILLEGAL FORECLOSURE CASE. 

BECAUSE OF PENNYMAC LOAN SERVICES LLC 'S MULT-LEVELS & IMPLEMENTATION OF FAILURES SAID BORROWERS ARE SEEKING PROTECTION AND RESTRICTIONS UNDER CFPB 'S DUAL-TRACTING RESTRICTIONS TO STOP THE ILLEGAL SHERIFF SALE OF XX/XX/XXXX WITHOUT ANY ORDER FROM THE COURT IN CASE NUMBER XXXX XXXX XXXX  XXXX INITIATED BY A NON-ATTORNEY OF RECORD WHO ASSIGNED THEIR AUTHORITY TO ANOTHER XXXX XXXX XXXX XXXX AND PENNYMAC CONFIRMED THEM AS THEIR HIRED ATTORNEY BUT NO COURT ORDERS CONFIRMING THEM OR RELEASING XXXX XXXX XXXX AND PENNYMAC LOAN SERVICING LLC NEVER CLAIMING XXXX XXXX XXXX AS THEIR HIRED ATTORNEY AFTER ASSIGNMENT TO XXXX XXXXXXXX XXXX. NO SUCH DOCUMENTS IN EXISTENCE. THEREFORE, BORROWER 'S EXERCISE THIS RIGHTS AND DEMAND CFPB TO ENFORCE IT AS YOU ALL ARE UNDER OBLIGATIO OF LAW TO DO SO ; AND BORROWERS ALSO DEMAND CFPB TO ENFORCE OUR RIGHTS UNDER THE COVID-19 RECOVERY OPTION OF THE ALM -ADVANCE LOAN MODIFICATION XXXX XXXX XXXX XXXX  ) -Unemployment is available when one or more of the borrowers have become unemployed and this loss of employment has negatively affected your ability to continue to make your monthly mortgage payment. After the completion or expiration of the forbearance period your servicer will review the COVID-19 Recovery Options available to you to resolve the outstanding amounts of the reduced or suspended payments. 

COVID-19 Recovery Loss Mitigation Options The COVID-19 Recovery Loss Mitigation Options provide borrowers with options to bring their Mortgage current and may reduce the P & I portion of their monthly mortgage payment to reduce the risk of re-default and assist in the broader COVID-19 recovery. FHA offers COVID-19 Recovery Options to borrowers who are on a COVID-19 Forbearance, or borrowers who did not participate in a COVID-19 Forbearance who are 90 days or more delinquent through XX/XX/XXXX. Non-Borrowers who acquired title through an exempted transfer are not eligible for the COVID-19 Recovery Options and must be evaluated for FHAs Standard Loss Mitigation Options . 

COVID-19 Advance Loan Modification ( ALM ) : The COVID-19 ALM is a permanent change in one or more terms of a borrower 's mortgage that achieves a minimum XXXX percent reduction to the borrower 's monthly principal & interest ( P & I ) payment and does not require borrower contact. Servicers will proactively mail the modified mortgage documents to borrowers who can achieve the required payment reduction. If the borrower chooses to accept the COVID-19 ALM they will only need to sign and return the mortgage modification documents sent to them by their mortgage servicer. 

COVID-19 Recovery Home Retention Options : COVID-19 Recovery Standalone Partial Claim : For borrowers who can resume making their current mortgage payments, the COVID-19 Recovery Standalone Partial Claim allows mortgage payment arrearages to be placed in a XXXXinterest subordinate lien against the property. The Partial Claim amount does not require payment until the last mortgage payment is made, the loan is refinanced, or the property is sold, whichever occurs first. 

COVID-19 Recovery Modification : For borrowers who can not resume making their current monthly mortgage payments, the COVID-19 Recovery Modification resolves the outstanding mortgage payment arrearages by adding it to the principal loan balance of the first mortgage, extending the term to XXXX or XXXX years at the current fixed market interest rate, and targets reducing the borrower 's monthly principal and interest portion of their monthly mortgage payment. The COVID-19 Recovery Modification must include a Partial Claim if the borrower has Partial Claim funds available. 

AND BECAUSE WE HAVE ELECTED THESE OPTIONS SAID SERVICERS IS NOT ALLOWED BY LAW TO COMMENCE THE SHERIFF SALE AND IT MUST BE STOPPED FOR SAID BORROWERS HAVE EXERCISED THIS OPTIONS WELL WITHIN THE REQUIRED TIME OF 37 DAYS BEFORE THE FRAUDULENT UNAUTHORIZED SHERIFF SALE THAT DOES NOT HAVE A COURT ORDER ( DEMAND PENNYMAC AND THE SHERIFF OFFICER TO PROVIDE THIS AGENCY WITH AN ORDER FROM THE COURT GRANTING THIS SALE ) PENNSYLVANIA IS A JUDICIAL STATE AND IN ORDER FOR A SHERIFF SALE TO COMMENCE THE SHERIFF HAS TO HAVE ORDER FROM A COURT -WHERE IS IT?????? SINCE XX/XX/XXXX PENNYMAC IS SNEAKINGLY AND DECEPTIVELY ACTING AS IF THEY DO NOT HAVE TO RESPOND OR ACKNOWLEDGE BORROWER 'S REQUEST AND THEY CAN KEEP ILLEGALLY PROGRESSING TO THE FRAUDULENT SHERIFF SALE. SO, PETITIONER ON BORROWER 'S BEHALF IS FILING THIS COMPLAINT AND DEMANDING THE CFPB ENACT ITS ENFORCEMENT AUTHORITY UNDER THE LAW TO PREVENT THIS ILLEGAL SALE FROM HAPPENING AND ENFORCE REGULATION X AND ITS MADATE UPON PENNYMAC LOAN SERVICES LLC.

Company response to consumer: Closed with explanation