Consumer complaint received 2025-02-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: PENNYMAC LOAN SERVICES, LLC.
State: GA

Complaint narrative:
XX/XX/XXXX- I closed on my house with a conventional loan with the contractual information that if I reached 80 % Loan to Value of the home, whether through property appreciation or paying down my mortgage, I would be able to remove PMI. Originally my loan was through XXXX XXXX XXXXXXXX. 

XX/XX/XXXX - Soon after I closed on my home, I realize that my mortgage was sold by XXXX XXXX XXXX to PennyMac. 

XX/XX/XXXX- I realized that I was getting close to that 80 % based on the values of the properties sold in my community, so I called PennyMac to inquire about the process of PMI removal.

The customer service representative confirmed via phone the 80 % loan to value needed. They saw that the current loan to value would not reach the 80 % threshold, but they let me know that I could request and pay for a broker 's opinion of value or an appraisal and PMI could be removed by reaching that 80 % threshold by property value appreciation. That was the same understanding I had when I closed on the mortgage in XXXX. 


XXXX XX/XX/XXXX - I called PennyMac to pay and schedule the broker 's opinion of value and the appraisal, as suggested by PennyMac. 

XXXX XXXX- XXXX came out to my home to appraise the value, any upgrades, and evaluate properties sold in my community. I was told by the broker that I should very likely meet that 80 % threshold based value of properties sold in the community, but that I needed to wait for the official word from PennyMac. 


XX/XX/XXXX - I received a letter saying that my PMI deletion was denied by Penny Mac. I had reached the 80 % threshold by property appreciation, but they now were trying to enforce a 75 % threshold because it was reached by property appreciation, as opposed to paying down on principle, or original loan value.

I immediately called PennyMac to escalate the case because I knew it to be a mistake on their part. There was never any discussion, written agreement, or otherwise about a 75 % threshold for PMI deletion. I was always from the inception of the loan contractually obligated to the 80 % PMI deletion, regardless of how value was reached.

Since raising the flag with PennyMac, I've received multiple explanations or excuses to not remove the PMI. Including that 1. my townhome is classified as a multi-unit when its not, that 2. I signed a " mortgage disclosure document '' that says it should be 75 % ( which I did not ) and XXXX that 75 % was XXXX 's rule ( that was never signed nor disclosed to me ). 

I asked to see the " mortgage disclosure document '' that they say proves the 75 %. PennyMac sent it to me and it was a doc originally from " XXXX XXXX XXXX '' on their letterhead. I reached back out to XXXX XXXX XXXX for clarity on the document PennyMac provided to substantiate the 75 % threshold, and XXXXXXXX XXXX XXXXXXXX denied that saying that is NOT what that document states. 

XXXXXXXX XXXX XXXXXXXX reached out to PennyMac directly to clarify, and they received pushback as well. Finally, PennyMac representatives downloaded a document from the Internet from XXXX XXXX to attempt to substantiate this new 75 % threshold that they were trying to enforce after I reached the originally agreed upon 80 % threshold. I would not accept this doc from a random website. I still escalated the case internally at PennyMac and I asked for an ombudsman at PennyMac ( no luck ) because I can not accept a document from the Internet as official, particularly for a 30 year mortgage that I signed my life away on.

If I am contractually held to standards, PennyMac can not be the exception to that standard when engaging with me.

I am being erroneously ( or fraudulently ) held to PMI removal standards that do not contractually apply to me. I have gone back to my original mortgage supplier " XXXX XXXX XXXX '' to cross reference this. They have reached out to PennyMac on my behalf several times to help me get this case corrected.

I continually ask for this case to escalated internally at PennyMac to have it rectified and I continually receive push back with my true substantiation.

This is the classic case of the finish line being moved once I reached the contractually agreed upon PMI removal threshold ( 80 % ) and PennyMac is not upholding the original terms of the loan/ mortgage.

PennyMac representatives have tried to force me to accept SEVERAL different, unsubstantiated reasons not to honor the PMI removal at 80 %. I sincerely feel that I am being taken advantage of by a massive corporate machine only interested in their bottomline : PennyMac. It is abundantly clear that they not looking for out my best interest of me as a customer, homeowner and 30-year mortgage holder. 

I am requesting CFPB support to resolve this issue. 

Thank you, XXXX XXXX

Company response to consumer: Closed with monetary relief