Consumer complaint received 2025-09-16 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: PENNYMAC LOAN SERVICES, LLC.
State: TX

Complaint narrative:
Complaint Improper Credit Reporting by Loan Servicer During and After VA Disaster-Related Repayment Plan PennyMac Loan Services , LLC XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX CA XXXX XXXX - XXXX Dear CFPB, I am filing this complaint regarding my VA-guaranteed home loan. My loan servicer established a repayment plan due to a disaster-related hardship. From the very beginning of this repayment plan, despite my full compliance and timely payments under the servicers arrangement, the servicer has continuously reported my mortgage as delinquent in some months showing me as late up to 90 days. 

I have since successfully completed the repayment plan, curing the default exactly as agreed. However, my servicer continues to report derogatory and late-payment information to the credit bureaus, even though the loan has been brought current. 
XXXX. VA Guidance on Disaster and Repayment Reporting - VA Manual M26-3, Chapter 19 ( Disasters ) : The VA urges servicers to suspend credit reporting on Veteran borrowers impacted by disaster to avoid damaging their credit records.

- VA Guidance on Natural Disasters : Servicers are directed to use Reason for Default = Disaster and are urged not to penalize Veterans credit while in disaster-related loss mitigation.

- VA Servicer Handbook M26-4, Chapter 5 : Once a repayment plan cures the default, servicers are required to report a Loan Reinstated/ Default Cured ( DCLR ) event through VAs VALERI system.

By reporting me late throughout my repayment plan and continuing to do so even after completion my servicer is ignoring VA guidance and engaging in inaccurate and harmful credit reporting.

2. Harm Caused I followed the repayment plan in good faith, made all payments on time, and successfully cured the default. Yet my credit reports show repeated late-payment entries, including 6090 day delinquencies, during the repayment period and continuing after reinstatement. This reporting is inaccurate, misleading, and harmful to my credit profile, in direct contradiction to VAs disaster-related borrower protections.

3. Requested Relief I request that CFPB intervene and require my servicer to : 1. Immediately remove all late-payment and derogatory entries reported during my disaster-related repayment plan.

2. Correctly update my loan status to Loan Reinstated/ Default Cured ( DCLR ) with VAs VALERI system and all major credit bureaus.

3. Provide written confirmation that these corrections have been completed.

Conclusion I complied fully with my servicers repayment plan and completed it successfully. My credit should reflect reinstatement, not ongoing delinquency. I respectfully request that CFPB hold my servicer accountable and ensure compliance with VA guidance and federal consumer reporting standards. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with non-monetary relief