I did a streamlined refinance of my FHA mortgage in the Fall of 2012 and I was told that all elements would remain the same, including the impound account with taxes and “walls in” homeowners insurance (I have a condo). Pennymac bought the loan and in July of 2013 I received a notice that my homeowners insurance was about to be cancelled. I immediately called Pennymac to alert them and find out why the insurance was never paid. Pennymac told me that they do not require “walls in” insurance and therefore did not have it set up. I confirmed that it was supposed to be coming out of my impound account and they said that I just needed to call a specific division within Pennymac to authorize the insurance payment out of the impound account. I did that and was assured that everything was taken care of.
In February of 2014 I was logged on to my insurance company website to pay my auto insurance and discovered that I literally did not have homeowners insurance because Pennymac had not paid it. I immediately called Pennymac to find out what had happened and literally no one could help me. Their only response, despite my repeated explanation of speaking with the insurance division and authorizing the payment, was that they do not handle or require “walls in” insurance. Frustrated, I just paid the insurance out of pocket and restarted my account.
In March I received notification that my impound account did not have enough money in it and I was going to start being charged extra. Some of this was for property taxes and some of this was for insurance! I called and they told me that based upon my call in February they had set up my insurance and I had double paid on the homeowners insurance by paying out of pocket. I insisted on a conference call with my insurance company, who confirmed that Pennymac had not paid the insurance and the only payment they had was my personal payment.
Since then I have been trying to get them to remove the extra $519 from my payment bill. I have been told on several occasions that this was in process. I have also occasionally been told that I could not remove this insurance since it was “required,” which is in direct opposition to what I was told when my insurance was never paid. Several customer service people have told me they were escalating the issue and would have it resolved within a few days. I then never hear from them again. Here are three of those people: Kimberly at ext. 7669, Albert at ext. 7744, Wade at ext. 5125. I then finally got ahold of Brett Wright, Customer Service Supervisor at ext. 5162. He assured me that he was personally working on this and would have it resolved prior to the May 1 payment date. He stopped responding to me on April 24, despite multiple emails and voicemails left for him.
My homeowners insurance is paid for. I do not want to pay double for this, especially since Pennymac has not actually paid for the insurance despite their claims. How do I resolve this?
Product or Service Mentioned: Pennymac Refinance.
Monetary Loss: $519.