Home Loans and Support

PennyMac Modification Track Record

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by kennedy.hhsc, Oct 30, 2009.

  1. kennedy.hhsc

    kennedy.hhsc LoanSafe Member

    Has anyone had an experience with doing a modification successfully with Penny Mac?
    My loan was just transferred/bought by them from my other crappy service provider, MoreEquity.
    And of course my loan is not Fannie or Freddie, but I still sometimes questions that, but that is another discussion.
    PennyMac says I make too much money, so I am considering withholding my mortgage payments to see what that will trigger and take the risk of hurting my credit. Essentially the idiots at customer service said that is really my only option.
    I just don't know how long it will take for someone to call me and offer help and if I can even get help.
    Its just unbelievable that I have to trash my credit to lower my interest rate of 8%!!!
    Any insight to your experience would be helpful, thank you!!!

    Also I am new to this forum, and I know my situation is not half as bad as most of the people in this situation, at least i still have a job at this point. Any help or insight would be appreciated.

    I saw an article last night that said Penny Mac has not done any load modifications, just not sure if that is with the MHA plan or all together.

    Thanks again!!!
  2. Social Apocalypse

    Social Apocalypse LoanSafe Member

    WOW! You have the IDENTICAL situation as I do. What part of the country are you in? Did you get your mortgage through Paramount Equity Mortgage? I bet I can help you. Let us know!

    How long have you had your loan? Do you have a second? ;)
  3. kennedy.hhsc

    kennedy.hhsc LoanSafe Member

    I am in Cleveland area, I got loan in 2004 it was originally a 3/1 arm, obviously a big mistake

    it was originally thru Wilmington finance sold to MorEquity right away and sold to PennyMAC in august of 2009

    I do not have a second mtg

    I am desperate to lower interet rate it's unbelievable what they are doing , they would rather me do a deed in lieu then modify, take a $35k loss, but of course now I know, it's because pennymac paid pennies for my loan.

    Anyways, let me know you situation, any help, advice or insight would be awesome

  4. Social Apocalypse

    Social Apocalypse LoanSafe Member

    Oh dude, you have help available! I know exactly what happened to you. You have a seriously predatory loan. Wilmington Finance is a "pretender lender" who never really owned your loan. If you check you will see that there will be an "Allonge to Note" in your documents if you request them (you won't have seen it at closing) specifying Morequity as the beneficiary of your loan EVEN BEFORE they "bought" it from Wilmington.

    Wilmington, Morequity are both AIG companies. Your loan falls within the boundaries of a large number of loans that the Office of Thrift Supervision filed a statement of charges and ordered restitution against AIG for loans originated by their subsidiary, Wilmington Finance, and were ordered to offer you a NEW mortgage and return fees!! You simply need to go and file a complaint with the office of Thrift Supervision, Here is the link to the supervisory agreement: http://files.ots.treas.gov/480959.pdf
    GOOD LUCK. This is NO JOKE. You need to get them to take care of you.
    It's true, you won't get anywhere until you stop making payments. I could write a novel, and I probably will some day. I have the EXACT circumstances as you, only mine was in 2006, and I am on the west coast.

    One other thing: I am sure there is no note on your mortgage. You also have that defense available to you... You almost certainly have a security backed mortgage, and the note was entrusted to the "MERS" system. That means that if they tried to foreclose on you, they could NOT because they destroyed the actual note.

    Good luck, and this FORUM IS YOUR BEST FRIEND and MOE BEDARD is our Messiah.
    1 person likes this.
  5. grullagirl

    grullagirl LoanSafe Member

    I had read an article, albeit way back, that PennyMac was a company that was formed for the purpose of buying up loans that were considered high risk with the intent to foreclose. You might do some investigation but I believe that there was rumor that there were politicians and bankers involved. Of course, those that could have insider information etc, etc.

    I hope you all realize that both political parties are intent on screwing the average American citizen. If you think that either party is looking out for you, I have one question, CAN YOU SPELL DUPED?

    THANKS2U LoanSafe Member

    From what I remember reading, PennyMac is a multi predatory company, using their self owned subsidiary companies to defraud, steal and extort money from the homeowner, during the forclosure process.


    Pennymac is the new corrupt corporation castle, where those Blood Sucking, Sadistic, Satanic DEVILS of Countrwide executives, have moved their conniving corrupt coffins !

    BEWARE ! Pennymac will NOT help you in any way, their only goal is to kill, crush and destroy you... And that is after they have drained you dry..

    Pay them nothing and seek help from an attorney or HUD approved home saving agency or any government agency, as mentioned in the previous thread .

    Stay strong and do what is best for you !
  7. Social Apocalypse

    Social Apocalypse LoanSafe Member

    I received a packet to apply for modification from PennyMac yesterday (we are newly transferred to them from Morequity). This was after a phone conversation with them and they offered to send the packet because of our situation.

    I have not heard as much bad news about them yet, although I haven't really heard anything good either. Their business model (supposedly) is to purchase predatory loans at pennies on the dollar (PENNYmac?) and rehab them immediately with modifications to make them solid mortgages again, and then to resell them to investors again at a large profit.

    I will say that I have found them to be extremely courteous and professional on the phone, and they answer the phone quickly with a live person. SO far, I am not complaining... we'll see what happens as we proceed into loan mod land... I'll keep everyone posted.

    THANKS2U LoanSafe Member

    All vampires are courteous, seductive & professional, before they sink their blood sucking / in this case, financially sucking teeth into you.

    One reason the banks are PAWNING OFF their loans to the likes of PennyMac is because then the banks can clear their books and NOT be held accountable for modification report cards to the government.

    I sure hope I am wrong about PennyMac and I also certainly hope that the government requires Pennymac to have report cards for their Modification practices -

    If pennymac has no report card obligation, then we have to get busy and inform all the proper government agencies that Pennymac needs to have the same report card requiremnts as the banks who sold them the loans.

    Just because a person sells a car to another person just before the cars smog test is due, does not mean the new buyer is exempt from doing the smog test !

    Get it ! - Banks like Bank of America etc are selling off the bad loans they did, so they do not have to be responsible in any way shape or form, to help the homeowner into a Modification and also the defrauding banks have NO MORE REPORT CARD ACCOUNTABILITY..

    I bet you PennyMac makes up its own rules and has no report card requirements...

    Good Luck
  9. davephx

    davephx LoanSafe Member

    PennyMac makes reports like all other HAMP Participants

    Among the servicers participating in the government’s mortgage modification program is a new recruit that’s not like the others. PennyMac.PennyMac may be better suited to helping struggling homeowners than other lenders taking government subsidies are.

    A March New York Times article profiled PennyMac, focusing on the fact that former top managers at Countrywide were looking to profit from rehabbing high-risk loans that had failed. Countrywide, which made high-risk loans that the company’s CEO himself called “toxic” and “poison” in internal e-mails, has been widely blamed for helping trigger the financial crisis.

    Servicers and investors are loath to modify loans because most aren’t convinced that it will reduce their losses. But PennyMac’s business strategy revolves around modification, turning “sub-performing and non-performing loans” into “restructured and re-performing loans,” according to a recent company prospectus.

    PennyMac buys distressed loans at fire-sale prices. In January, it purchased nearly 3,000 mortgages from the Federal Deposit Insurance Corp., which sells loans taken over from failed banks. The book value for those loans was $560 million, but PennyMac paid just $43 million, As a result, it has much more leeway to drastically reduce loan payments than banks holding mortgages at inflated values. “It can afford to lose more”

    “If they’re in fact doing that, I think it’s a wonderful thing,” says Margot Saunders, a lawyer with the National Consumer Law Center, who had initially been critical of the company’s provenance.

    But PennyMac may have a hard time leaving behind its ties to the scandal-ridden Countrywide. As for whether PennyMac will outdo the other participants in the government’s loan modification program, “the proof will be in the pudding,”
  10. Social Apocalypse

    Social Apocalypse LoanSafe Member

    Exactly. I read that same article and then found out shortly after that PennyMac had purchase our loan.

    I agree, the "proof is in the pudding". I also try to give EVERYONE a chance to be innocent until proven otherwise. SO FAR, I have not seen any real negative press about PennyMac. I do know they are held to the exact same standards as all of the other banks (actually Servicers).

    The good news MIGHT be that since they bought these loans for literally NOTHING (sometimes less than 10%!!) they have a lot of "wiggle room" when negotiating. In otherwords, it doesn't "cost them money" to modify the loan, they WANT to so they can SELL IT. They are doing it on the governments dime (remember, HAMPS compensate the lenders when they modify loans) and then they turn around and sell the loans at a profit on top of that...

    I had a serious conversation with them (A VP) about offering them a partial payoff, and they were EXTREMELY OPEN TO THE IDEA. I will let you know how that evolves, but AS WITH ALL OF THIS: It is CRITICAL that you first learn what your lender's pain threshold is, and have REALISTIC expectations about what they are likely to do.

    It isn't PERSONAL. They don't CARE about what happened or why you can't pay your mortgage, they just care about red/black ink. PERIOD. That's all. Think of it in business terms, and you WILL get somewhere.

    I know that things will start happening more now, because their evil jugulars are now beginning to be exposed... the foreclosures are not enforceable on most of the toxic loans, and main street America is starting to KNOW this, and judges are learning this, and they are ruling accordingly. Our bargaining power climbs proportionately as they are more and more at risk.

    OUR job is to FIND OUT where their thin skin is.
    With PennyMac, I am not sure yet... but I know where my previous lenders' was (and is).

    Think like a business person, try to separate your hate and frustration, and you will see things more clearly. It's not easy to do all the time, but it works. STRATEGIZE. That's what they are doing, they aren't burdened by emotion like we are. It's our biggest weakness, and they DO uses it against us! They get our hopes up, they say what we want to hear... That's what I am doing, and it's working, I think. Sometimes it feels like playing a giant game of chicken, but when you have the support of knowledge and truth behind you, it's amazingly fortifying.

    Can't wait to see if anyone has any news about PennyMac. I expect this forum would have the first breaking news if anyone would! Keep it coming, and I will do the same!!:)
  11. davephx

    davephx LoanSafe Member

    TB98629 - very good comments.

    I prefer the business approach and trying to work with people rather than yelliing, sreaming and name calling. The worker bees we talk to are not the CEO's that helped create the mess. They are happy to have a job and try to help us. The frustrated with his own situation loan mod guy from Citi on here is a prime example trying to help folks but sometimes can't. The folks we are taking to are more like him than the CEO's who made millions.

    There is pressure by the Admin/Treasury for banks to do mods, but we need more pressure and nicely raising issues to Congress etc about how the rather simply guidelines are not being followed and too many added reasons to decline that the servicers are coming up with even though meeting the published basic requirements of HAMP.
  12. kennedy.hhsc

    kennedy.hhsc LoanSafe Member

    But the only thing that scares me about Penny Mac buying up these loans for pennies on the dollar to supposedly modify the loans is it doesn't appear they are doing that...

    Just to play devils advocate for PennyMac...

    They have a loan worth $233,000, they know the house is only worth $200,000 MAX...They probably only paid $50-75,000 for note...if that...

    Why would they modify the note if I went behind, they would be better off foreclosing, even if they lost $100,000 in value (which is very high) they would still come out on top $50-75,000 as far as profit for what they paid for it.

    That is what I am afraid of, if I stop paying my mortgage....
  13. kennedy.hhsc

    kennedy.hhsc LoanSafe Member

    Okay, so help is available to both of us, what have you done or doing with your mortgage??

    Do we still need to go through PennyMac for this restitiution from the AIG & Wilmington Finance issue???

    Just curious to see what you have done, it sounds like from your other postings that you are just starting to, which is fine of course, I am just trying to grasp to see if PennyMac is even modifying loans...

    I know its risk, but I don't want to trash my credit if they are not going to do anything but foreclose, because that is not an option, I would rather to something else...

    Thanks for ALL your comments

  14. Social Apocalypse

    Social Apocalypse LoanSafe Member

    I concur davephx-the challenge is getting everyone focused on the BIG rocks, and to let the little rocks fall through for a bit. We need to work on the broad strokes: Like accountability at the servicers and banks. That would be a great start. I mean REAL accountability.

    I lament the Health Care reform right now because it is diverting infinite resources away from what really is a much more blazing problem at hand. YES health care needs to be fixed SOON. But we won't have a NATION to give health care TO if they don't fix the housing crisis, in my opinion. You can't raise taxes to pay for health care when people are unemployed and homeless, or am I missing something? Is Congress buying a wedding gown before they have a boyfriend?
  15. davephx

    davephx LoanSafe Member

    Not to get off on another topic.

    But I don't understand the raising taxes related to Health Care. In the latest versions it is only a few percentage points on those making over I think its now $350,000 of taxable income. And their insurance premiums ..might...this is still a grey area unless we have a solid public option... go down far more than the extra tax cost on those that can clearly afford higher taxes and still will enjoy some of the lowest tax rates in the world.

    We need to get HC passed and done but certain folks want to just drag it on forever and there are other just as urgent matters to deal with or for many of us more urgent like of course fixing the HAMP program enforcement or easing some of the restrictions.
  16. Social Apocalypse

    Social Apocalypse LoanSafe Member

    <please picture Cosmo Kramer here>
    "YOU just BLEW MY MIND!"

    WOW, I never even thought of that. It's a CHILLING THOUGHT... let's expand on this... You're right. They would make MORE foreclosing on our property and selling it.

    <I feel sick>

    Thanks for THINKING for me!

    And yes, PennyMac (or any servicer/lender/etc) automatically assumes all liability for the mortgages they buy. If you read their SEC filing, AIG discloses (as they always do) that there are certain liabilities pending in which they have to pay restitution.... etc. They made a large entry about the case I told you about with OTS, and that these cases were still pending. There is millions of dollars in a trust set aside to pay restitution and make new loans to these people. (YOU are one of them, I am certain).

    DEFINITELY file your complaint with them NOW. They will respond that they have received it. They sent me a copy of the fax they got from me (which was 68 pages of my closing docs) via US mail, so I KNOW they got it. They were also decent to deal with on the phone.

    They are WELL AWARE of the case with AIG.
  17. Social Apocalypse

    Social Apocalypse LoanSafe Member

    Ok-My mind is in electrical meltdown, and I realize that YOU are EXACTLY right and now it opens a whole other can of worms.

    HERE is PENNYMACS (AKA lowest scumbag Countrywide Execs who got out of there just before the feds took them all to prison) business model according to SocialApocalypse.com (ME)

    1. PennyMac buys all the toxic loans for 20 cents on the dollar.
    2. PennyMac then contacts ALL the second lien holders proactively and says, "hey mr. second lien holder, have we got a deal for you. Since your ONLY GOAL on this earth is to foreclose because that's how you make your money, we are offering you an opportunity to get back in black. We will sell you the FIRST lien on this home for the bargain price of 50 cents on the dollar!"
    ---this makes PennyMac a cool 30 cents on the dollar INSTANTLY.---

    Remember, the second lien holder, IN ORDER TO FORECLOSE, must first BUY OUT THE FIRST LIENHOLDER!!!! Up till PennyMac came along, you didnt' have to worry much about foreclosure on the second because they were so upside down, they would lose money.

    But this now means that they pay 50 cents on the dollar for the first, putting them BACK in an equity position, and THEN THEY CAN CONTINUE THEIR MISSION TO FORECLOSE!!!!!

    I feel sick as I am writing this, but I KNOW that's what they are doing. THAT is why they are all STALLING.

    THAT is why they are dragging their feet. There are meetings and sales going on, between PennyMac and Citi, JP Morgan, etc AS WE SPEAK.

    What are we going to do? Most of us are NOT in a good spot with regard to our second!!!!

  18. kennedy.hhsc

    kennedy.hhsc LoanSafe Member

    Okay, since we are all depressing our selfs with the "what ifs' and wishing we were bank executives :)

    WHO do I file a compaint with? and what exactly did you say or should I say?

  19. Social Apocalypse

    Social Apocalypse LoanSafe Member

    Start with The Office of Thrift Supervision. They are the ones who did it. FIRST read the Supervisory agreements and the other docs so you understand it... you will. Here is a link to that:
    OTS Executes Supervisory Agreement with AIG FSB
    THEN; file your complaint here:
    Office of Thrift Supervision - Consumer Complaints and Inquiries

    I asked them to be included in the Supervisory Agreement. They asked me to fax in all of my closing/mortgage documents, and I did.

    It is still pending, and they said it would take a few weeks if not months. I will update the forum when I hear more.

    Let me know if I can help further, glad to. GOOD LUCK!!
  20. Social Apocalypse

    Social Apocalypse LoanSafe Member

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