Consumer complaint received 2025-08-09 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: PENNYMAC LOAN SERVICES, LLC.
State: CA

Complaint narrative:
This is a continuation of CFPB Complaint number XXXX, closed prematurely without consideration of new evidence. I am requesting this be linked to my prior case and treated as a reopening request. 

To : CFPB Case Officer / PennyMac Loan Services , LLC I am writing in direct rebuttal to PennyMacs XX/XX/year>, response to my CFPB complaint regarding mishandling of a short sale request for Loan # XXXX ( Property : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX AZ ). 

The response contains material contradictions and misrepresentations that must be addressed. 



1. Contradictory Claims About Submission Methods PennyMacs letter asserts that on XX/XX/year>, they mailed instructions to the property address, ( as opposed to the contact address I had provided in my first phone call in XXXX ) outlining required documents and advising that documents could be submitted via the mailing address or uploaded through the borrowers online account. No mail has been delivered to my home address nor to the property address when mail was collected at the time of closing. 
Contradiction : Between XX/XX/XXXX and XX/XX/XXXX, I called multiple times and was repeatedly told the only way to submit documents was by replying to an email that never arrived. I was instructed to check spam and wait, despite telling representatives I had not received the email. At no point during these calls did anyone mention portal upload or fax as valid methods. 

If PennyMac truly communicated these options in XXXX, then : Why did multiple representatives provide contradictory and incomplete instructions in XXXX and early XXXX? 
Why was I first told about fax/portal submission on XX/XX/year>, more than a month after initiating contact? 

This failure directly delayed document submission and made timely short sale review impossible. 



2. Failure to Provide Accurate Timelines PennyMac claims short sales take a minimum of seven ( 7 ) weeks. 
Contradiction : If this was a known fact, I should have been informed on XX/XX/year>, during my first call, before accepting an offer and entering escrow under the belief a short sale could be processed in parallel. Instead, I was encouraged to proceed without being told the process was incompatible with the closing timeline. 



3. Mischaracterization of My Actions The letter claims PennyMac had not actually received any documentation prior to XX/XX/year>, implying I failed to act. In reality, I attempted to provide documents in XXXX but was blocked by the email-only instruction. That instruction was : Factually false ( per PennyMacs own later admission ) Repeated by multiple reps over several weeks This is not inaction on my part ; it is a direct result of misleading and incomplete information from PennyMac employees. 



4. Unjust Enrichment at My Expense The mishandling of this process forced me, as Trustee, to personally cover approximately {$34000.00} to close the transaction on time. This payment : Directly benefitted PennyMac by avoiding a foreclosure, legal costs, and loss recovery efforts Provided them with a full payoff on a loan that was otherwise underwater PennyMac is attempting to claim they followed all guidelines while retaining the benefit of my personal funds funds I had no legal obligation to pay. 



5. Regulatory Concern CFPB guidelines require servicers to promptly and clearly communicate with potential Successors in Interest, including all available document submission methods. The repeated insistence that only an email reply would be accepted when other methods were always available constitutes a clear failure of this duty.

Conclusion : PennyMacs response attempts to shift all responsibility to me while ignoring their documented role in delaying this process. The contradictions in their letter, combined with multiple instances of misinformation, show clear mishandling that directly caused my financial loss. 

I request that my CFPB complaint remain open and active until these points are fully addressed and resolved. 



Signature : XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation