Consumer complaint received 2025-01-14 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: VA

Complaint narrative:
To whom this may concern, I want to reach out and introduce myself as I am writing to you in response to an uncorrected error regarding my refinanced mortgage. My wife and I have worked our entire lives to be able to afford a home, and finally achieved this dream in XX/XX/XXXX, when shortly after closing our home mortgage was then sold to XXXX. We made our payments, everything was great, and in XX/XX/XXXX we were given the opportunity to refinance with Pennymac to a slightly lower rate, and had our first payment on the new loan for XXXX of XXXX. Our refinance paperwork, closing, etc. all went off without a hitch, or so we thought. 
At the beginning of XXXX of this year, XX/XX/XXXX, we were notified that our homeowners policy was cancelled due to a nonpayment, which we were notified by our insurance not Pennymac. After reviewing our loan activity, which on the previous and current loans has a monthly Mortgage Disbursement Payment allocated, as well as after reviewing the physically signed, and digital copied, clearly state that all money was allocated via Pennymac, and it was Pennymacs responsibility to send payment for the refinance, as well as the monthly payments. Our most recent payment that has been posted for this month has been cleared, and shows the insurance disbursement allocated, however there has been {$0.00} sent to our homeowners provider at this time. At this point, Pennymac has allowed our homeowners insurance, which is a requirement of the conditions of the mortgage to be valid, to be cancelled and have not shown any visible proof of the money being sent to XXXX XXXX, who was handling our insurance policy. 
After spending days, and hours on the phone trying to get an answer, I have been hung up on or perhaps disconnected after trying to get some form of an answer or confirmation of what is going on, and what occurred. I have been told that it was fixed, or paid, or reinstated including all fees that are associated with this, late fees as well as a reinstatement fee, by not one person, but at least three separate people. After connecting with my insurance provider, as of XXXX EST yesterday, there still has been {$0.00} sent to make sure our home is insured, our policy is reinstated, and our mortgage is still valid. I find that this lack of expeditious service to correct an issue that is well documented to have not been an error on the homeowners, nor the insurance company as the policy was provided with confirmation with more than enough time to make the transition. 
As a reminder at this point, XX/XX/XXXX Pennymac has allowed our homeowners policy to be cancelled, without any tangible or documented effort to resolve this issue to us, however our money being taken and allocated is well documented, however is clearly a lie. Our new homeowners policy was started on XX/XX/XXXX, however again in the closing documents conditions it clearly states where the money for the insurance is to be paid, and every mortgage payment has had the funds allocated post payment for disberment. I have had to cover the entire cost of this to be reinstated, and cover their mistake. I have been on hold with Pennymac SEVERAL times from XXXX to today XX/XX/XXXX. I have been told everything from it's taken care of, to the payment is being sent overnight to XXXX XXXX, however every time I call back to get an answer I am told seomthing else entirely, like the reinstatement fees are taken from my escrow, or that there is no one that can issue the check to the insurance today. I just want this taken care of, but at this point since the insurance would have been cancelled due to Pennymac, it would have breached a condition of our FHA loan, requiring homeowners on the property. If I need to hire a lawyer to get this taken care of I am prepared to do so, as I can not get any resolution from our mortgage company/provider.

Company response to consumer: Closed with explanation