3K views
New Reviewer
6 comments

I always read complaints and reviews about companies that I have business with.I did same thing with Penny Mac.I wanted to switch home owners insurance because if I bundle that insurance with my car insurance,I can lower home owners insurance premium.I paid for last year $674.00,but with new insurance company my payment would be $520.00.

I have learned from this web site about some issues with Penny Mac insurance department.I decided first to call Penny Mac and ask them for steps I need to do in order to switch insurance.I just wanted prevent to have any issues with Penny Mac when I get new insurance policy.I made that call on October 19,2013.First customer service representative told that I need to speak with insurance department and he made that connection.I spoke with Liliana.She was very helpful and explained what I need to do (obtain new policy,cancel old one,fax two insurance declaration pages to insurance department). I did all of that.Five or six days of that call,I purchased insurance.I paid in full.I faxed declaration pages on Tuesday or Wednesday to Penny Mac,then called them on Thursday.I was told to wait three to four days until they update their computer data system because it takes time to see new information in their system.I called again on Tuesday of following week.Guy on the phone told me that my new insurance company is listed on my mortgage account.He connected me to insurance department and I spoke again to Liliana.She was very courteous.I have got confirmation that my new insurance company is listed on my mortgage account.I was glad everything was very easy to do.

Next thing is to cancel my old policy.I did it on November 6,2013.

Please note that my new policy started on October 20,2013.I had two insurances at same time for more than two weeks.I just wanted make sure I will not get into problems with Penny Mac.

Then,in December 2013,I got surprise.Well,if you think that was surprise from Santa Claus,you are wrong.Penny Mac informed they did not receive a new/renewal policy covering my mortgaged property.Really? Penny Mac secured temporary coverage in the form of a 90-day binder through QBE Insurance Corporation in amount of $1,398.60.Wow!Another name for business practice like this is racketeering.I had an option to supply them with my insurance policy declaration at www.ihaveinsurance.com.I did it.I got e-mail confirmation that they will review my comments and let me know about it.One month passed,still did not hear back from Penny Mac.I left them my phone number at that time when I supplied them with insurance policy declaration and that was option to put into form if I wanted to hear from them.They never called me.

To make things more complicated,Penny Mac sent me Annual Escrow Disclosure Statement and notice that I have escrow deficiency of $188.17,and a shortage of $812.13.

My new mortgage payment will be 1425.00.Hundred dollars more than I pay now.I was thinking I will pay as I always paid all my bills on time.My credit score is 810 and I am financially very responsible person.I never had any issues with my previous mortgage companies such Wells Fargo or Lehman Brothers.Last one is not in business anymore because it was one of big banks that caused mortgage mess in past few years.Then I took second look at Escrow Disclosure Statement.Penny Mac included home owners insurance premium into Escrow Account Projection.I took monthly mortgage statement for January and I had escrow balance of $299.29.Where is deficiency of $188.17?

I have positive escrow balance.Penny Mac was not able to calculate some simple numbers plus they still cannot realize that I pay for home owners insurance directly to insurance company.

Common guys,three months passed and you still cannot figure out.I made copies of insurance declaration pages and escrow statement,and mailed to Penny Mac to address that is listed on their web site.I did it on January 7,2014.According to Penny Mac web site they will answer in three business days and mailed to customer's address.Today is January 18,2014.I am still waiting for their answer.Some of you probably want to ask question why I never called them.Actually,I did it.Every time I call their customer service number and want to speak with live person,not machine,I get disconnected,then right after that I call again and get busy signal.My new mortgage payment will be $100.00 more than I pay now,so yes,I called them to get explanation.

Meanwhile,Penny Mac sent me Form 1098-Mortgage Interest Statement for 2013.There is surplus on my escrow account in amount of $367.56.Nice.If I add $391.00 that went to escrow account from my January mortgage payment,that gives me sum of 758.79 surplus in my escrow account.Please note that they collect money into escrow account for year 2014 starting in February to February next year.When I put all numbers together,my mortgage payment should be lowered because I pay myself home owners insurance.Penny Mac think they pay.

Almost forgot,yes I have an account on their web site.The problem is when I try to log in I get error message that my log in and password are incorrect.Really?It is frustrating to call customer service to reset password.My log in and password are correct.Something is wrong with web site as someone else complained about it in one of posts at this web site.

After all question is what is next thing to do?I spoke to my friend who works at Utah Division of Consumer Protection,and she told me I need to file complaint with them,and I need to file complaint with FTC.I apologize if I made some mistakes writing this because English is my fourth language.

Location: Salt Lake City, Utah

Do You Have Something To Say ?
Write a review

Comments

chat-icon

Please avoid publishing any personal information and promotional content

You will be automatically registered on our site. Username and password will be sent to you via email.
Post Comment
Guest

Document everything and file a complaint with your state attorney generals office also file a complaint with Consumer Financial Protection Bureau....this will let them know you are going to fight back, also file complaint with the BBB...they have no teeth but bad press doesn't help them and may warn off unsuspecting homeowner from borrowing from PennyMac

Guest

You should also file a complaint with the Consumer Federal Protection Bureau - CFPB. http://www.consumerfinance.gov/

This is usually how I get things resolved with my mortgage company GreenTree!

Eleri Zin

Hi, Dezza, we're sorry for the frustration you're experiencing. We'll research this tomorrow and reach out to you quickly to straighten things out.

Guest
reply icon Replying to comment of Eleri Zin

I just got the same sort of letter from PennyMac...they've serviced my loan for only 2 months now and I get something saying I'm deficient $847.09. I have great credit (770ish), no other debt, and for the entirety of my payments (1.5 years) I've overpaid towards the premium by $100 each month.

Checked my escrow balance history and it fluctuates around a projected and actual balance. Seems there is (claim on letter) a federal law that requires them to hold a cushion up to 1/6 of annual disbursements.

If this is a one time thing I guess I understand...somewhat. But holy *** PM!!

I'm not in bad shape and could simply not overpay and/or save/spend less for life's fun activities but I'm trying to be a responsible adult that strives to do "the right thing." Im paying a debt that I agreed to in regards to all the terms and conditions and I'm making good on that obligation. I fear for people that may be struggling a bit, or have a dependent of any sort to be the primary caregiver for. This increase for which, in this case there is NO reasonable cause for, could break some people's ability to make it. I'll be calling customer service first thing tomorrow and try to state my case with the poor soul that works for a *** company that thinks this is a good business practice.

Btw...looking forward to reading about you in the news when another 2008 rolls around.

Just hope it goes a bit differently for our sakes next time.

In short, PennyMAC = *** waffle

Kyleah Rzo

I like to make update on my complaint against Penny Mac. I did review of my new mortgage payment that would start in February 2014.I already mentioned in my previous complaint that my new payment goes up in amount of $100.00.

So $407.74 goes to escrow account(jump from $391.23) plus $83.36 for mortgage shortage/deficiency.

Penny Mac pays taxes and PMI out of my escrow account which is $1,762.00 per year and PMI monthly payment is $204.69($2,456.28 for hole year). It gives me sum of $4,218.28 that needs to be collected and paid out of my escrow account. I added escrow surplus of $367.56 so my escrow account should have $4,585.84.I should be OK, but Penny Mac still want more money out of my pocket. Now, I will make calculation of their projected escrow account based on my new payment.

Escrow deposit $407.74 *12=4,892.88 + escrow shortage/deficiency $83.36*12=1,000.32=$5,893.20

I will add escrow surplus from 1098 form in amount of $367.56 +$391.23 that went to escrow account from January payment=$6,651.99

Question is why then Penny Mac want to have $6,651.99 in my escrow account when they will pay out $4218.28? Taxes probably will not go up this year because it went up by slightly more than hundred dollars more for last year, and we do not have tendency of tax hikes every year.

Now, I am more than eager to contact Utah Consumer Protection Division, FTC and probably local news guy Bill Gephard who is well known for investigating fraud and deceptive business practices.

Guest
reply icon Replying to comment of Kyleah Rzo

I'm having a similar problem with my escrow, Every yr I'm short and have to pay extra money when it shows I had money left in my escrow account after paying taxes, insurance.... Ect. My monthly mortgage is also going up, I'm having my realtor help me out with this problem..this is frustrating

Pennymac Reviews

  1. 271 reviews
  2. 66 reviews
  3. 24 reviews
  4. 9 reviews
  5. 9 reviews
Pennymac reviews