Mortgage -- Trouble during payment process -- Complaint #5722578

Complaint Overview

Complaint ID: 5722578

Company: Pennymac Loan Services, LLC.

Product: Mortgage

Sub-Product: VA mortgage

Issue: Trouble during payment process

State: Texas

ZIP Code: XXXXX

Date Received: 2022-06-29T12:00:00-05:00

Date Sent to Company: 2022-06-29T12:00:00-05:00

Company Response: Closed with monetary relief

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Tags: Older American, Servicemember

Consumer Narrative

We refinanced our home in XX/XX/XXXX. In late XXXX our insurer billed our new mortgage company for the annual premium. our mortgage company paid {$220.00} of the {$1600.00} annual renewal out of escrow funds. We started getting notification from the insurance company that unless the balance due was paid by a certain date, the insurance would cancel leaving our VA mortgaged home without coverage. The insurer also notified the mortgage holder to the best of my knowledge. I called the mortgage company and talked to a customer representative who advised me that is how they did things, pay by the month on insurance, etc. that sounded strange to me. our mortgage company did nothing, I received a letter from the insurer of their intent to cancel which I scanned and sent to the mortgagor. They paid the remaining balance almost immediately. the dates involved are XXXX XXXX thru XXXX XX/XX/XXXX. the mortgage company sent a letter to me requesting verification of coverage during that time period. when we were told the policy had in fact been cancelled we paid out of our pocket to reinstate the policy a sum of {$130.00}. this was placed on a credit card. after the policy was paid in full by the mortgage company from escrow funds, we were reimbursed by the insurance company. we kept getting letters from the mortgage company stating they needed coverage verification or they would charge {$100.00} for single interest insurance for those 17 days. we kept calling trying to get someone online to address this fiasco, we talked to several people, some told us we were ok, that was just a form letter, some told us they were opening a research task and would notify us of the results. this continued from XXXX until XXXX, at which time the mortgage company charged us {$100.00} and took the monies out of escrow funds. I am concerned that the mortgage company did not pay the annual insurance renewal when it was billed, that they are trying to hold me responsible, and that their customer service representatives are not as knowledgeable as they should be. the insurance providers correspondence states that if the mortgage company pays the bill from escrow the mortgagee doesn't need to do anything else, and in the mortgage companies escrow logs they state that they are the responsible party for paying the bill on the customers behalf. I took them at their word.

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This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.

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