Consumer complaint received 2026-04-08 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: PENNYMAC LOAN SERVICES, LLC.
State: FL

Complaint narrative:
In the beginning of XXXX in XXXX, I called my mortgage lender, PennyMac for financial assistance due to a hardship. I had some car repairs that totaled over {$1800.00}, which in turn caused me to struggle with making my on-time mortgage payments. I was offered a forbearance program in which I enrolled. During this time my mortgage payment was reduced from it's normal amount of {$2400.00} down to {$1700.00}. It was clearly expressed to me that during this time I would not be reported as late to the credit bureaus, and I would have credit protection during my forbearance period. I was enrolled in this forbearance plan until XXXX, which is when I was finally able to resume my normal payments. At the very beginning of XXXX I called PennyMac to advise that I am now able to resume my normal payments since my hardship was over. During this call, the agent I spoke with was a very fast-speaking agent with a really thick XXXX accent. I inquired with him about the next steps to get back on track and see what my options were as far as repaying any owed monies that accrued during my forbearance. He asked if I was able to pay the {$4200.00} that day to get caught up. Of course I could not pay that, as I was just on a forbearance because I was already struggling as it was. After an " interview '' to see what I qualified for, he stated that I was eligible for a loan modification in which I wouldn't pay anything for the months of XXXX & XXXX. I was told that I would be able to resume my normal payments in XXXX, which sounded great to me. At no time was it ever clearly expressed to me that PennyMac would now start reporting me as late to the credit bureaus, or that my credit could possibly take a hit as result. His accent was so thick, and he spoke so fast that I thought all the same credit reporting guidelines from the previous forbearance would still be in place since I was calling to make sure everything was squared away. It was hard to understand the agent, honestly. Fast forward to today, XX/XX/XXXX, and I receive a credit alert stating that PennyMac reported my account 60 days late. Which I feel is completely predatory and underhanded. I thought I was doing the right thing by calling to talk about my financial situation with PennyMac, and keeping them informed. But now I feel completely taken advantage of. As I look back, PennyMac only gave me 2 options, either pay the past due balance of over {$4000.00} in full in the spot, or agree to the loan modification. Had I known that I my account would be reported as late to the credit agencies I would've looked for alternative arrangements on my own to come up with the past due money. I feel this practice by PennyMac is very shady and underhanded. To add insult to injury, even though I'm complying with the loan modification program requirements, they're going to report me late again next month if I don't pay the owed amount from forbearance. This is unacceptable. They're basically forcing their customers to pick between the lesser of two-evils. The point of this complaint is to make it known that I would like the late payment remark removed from my credit report, as well as my co-borrower, XXXX XXXX. I have done everything they've asked of me, and I've kept in contact with PennyMac to avoid any hiccups along my homeownership journey. Unfortunately, now my family and I are put in an even tougher spot financially and my credit is shot because of it. PennyMac should only use agents based in the United States when relaying such important information regarding mortgages. If I had a XXXX English speaker, I am a certain this would not have happened, as the terms of the loan modification would have been clearly expressed and understood.

Company response to consumer: Closed with non-monetary relief