Consumer complaint received 2026-03-20 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: PENNYMAC LOAN SERVICES, LLC.
State: KY

Complaint narrative:
I am submitting a formal complaint regarding the mismanagement of my escrow account and improper charges by PennyMac following the transfer of my VA loan. We closed on our VA home loan on XX/XX/XXXX, and paid over {$11000.00} in escrow at closing through XXXX XXXX XXXX which included funds designated for property taxes. Shortly thereafter, our loan was transferred to PennyMac. On XX/XX/XXXX, PennyMac notified us that they were unable to disburse our property taxes due to an unknown issue. I immediately contacted my original XXXX XXXX at XXXX and provided them with PennyMacs letter. I was assured the issue would be resolved. On XX/XX/XXXX, I contacted PennyMac and first spoke with a XXXX named XXXX, who informed me that our property taxes had not been paid due to an inability to verify the tax authority. This explanation was both confusing and unacceptable, as the property tax information is publicly available and clearly reflected both the amount due and that sufficient escrow funds were available. Unsatisfied with this response, I called back later the same day and spoke with XXXX, who was able to clearly identify the tax bill and confirmed that the funds were available in escrow. Given the date of XX/XX/XXXX, I expressed concern about potential late penalties. XXXX acknowledged this concern and advised that she would escalate the matter to a XXXX to have the payment overnighted to XXXX XXXX, Kentucky in order to avoid penalties. In early XX/XX/XXXX, PennyMac confirmed that the taxes had been paid. However, the payment included penalties. This delay and resulting penalties were entirely due to PennyMacs failure to properly process the tax payment despite having the necessary funds in escrow. On XX/XX/XXXX, I received a letter stating that PennyMac had paid an advance from corporate funds on my behalf and that the matter was under investigation. Concerned that I might be held responsible, I immediately contacted PennyMac and, on XX/XX/XXXX, spoke with a XXXX named XXXX, who stated only that the issue was under investigation, could not provide details, and advised that the process could take up to XXXX days. After receiving no follow-up, I called again on XX/XX/XXXX, and spoke with XXXX, who advised there was still no resolution and could not provide a timeline. I requested escalation, and she stated she notified her XXXX XXXX, who would be reaching out to me. I never received that outreach. On XX/XX/XXXX, I contacted PennyMac again and spoke with XXXX, who again stated the matter was still being investigated. When I pushed back due to the passed XXXX timeframe, I was transferred to a XXXX, XXXX. Both XXXX and XXXX referred to the XX/XX/XXXX letter as standard and suggested it could potentially be disregarded. I made it clear that I would not rely on verbal assurances and requested a formal resolution. On XX/XX/XXXX, XXXX followed up with me and confirmed that although there had been internal confusion, PennyMac would take responsibility for the penalties. She explicitly stated that I would not be responsible and that my escrow account would not be charged. This conversation occurred on a recorded line. Despite this clear resolution, I received a letter dated XX/XX/XXXX, stating the exact oppositethat the funds PennyMac advanced ( including penalties ) had been taken from my escrow account and were now my responsibility. This is unacceptable. At every step, I acted diligently and in good faith : I paid all required escrow funds at closing. I proactively followed up multiple times. I relied on assurances from both XXXX and PennyMac. I was explicitly told by a PennyMac XXXX ( on a recorded line ) that I would not be responsible for these penalties. The failure to pay property taxes on time, the resulting penalties, and the subsequent attempt to charge me for PennyMacs error represent a serious breakdown in servicing and accountability. This loan is a VA loan, and my husband is a XXXX % XXXX veteran. We should not have to fight to receive proper servicing or be held financially responsible for errors entirely outside of our control.

Company response to consumer: Closed with explanation