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Non-Bank Servicer

PennyMac Mortgage Servicing

PennyMac Loan Services (NYSE: PFSI) is one of the five largest mortgage servicers in the United States, with a servicing portfolio exceeding $600 billion. Founded in 2008 during the foreclosure crisis…

30+ Years Experience Nationwide Service Fast Response Confidential

Portfolio Size

$600+ billion servicing portfolio (top 5 servicer)

Customer Service

800-777-4001

Loss Mitigation

866-545-9070

Loss Mitigation Programs

PennyMac offers the following loss mitigation programs. Availability depends on your loan type (FHA, VA, USDA, GSE conventional) and investor guidelines. Not all programs are available for all loans.

GSE Flex Modification (Fannie Mae/Freddie Mac standard waterfall)
FHA loss mitigation waterfall (standalone partial claim, partial claim + modification, standalone modification)
VA loan modification with VA refunding option
USDA Special Loan Servicing
Forbearance agreements: 3-12 months depending on hardship type
Repayment plans: 3-12 months for temporary hardship
Payment deferral for resolved temporary hardship
Short sale program with relocation assistance available

Servicing Practices

  • Centralized servicing operations based in Westlake Village, CA and Tampa, FL
  • Online portal (PennyMac USA) for payment and document management
  • Automated loss mitigation intake with document imaging
  • Designated single point of contact for borrowers in active loss mitigation review
  • Investor-specific servicing: PennyMac services for GSEs, Ginnie Mae, and private investors simultaneously
  • Tiered escalation from customer service → loss mitigation department → executive resolutions

Foreclosure Timeline

PennyMac generally refers loans to foreclosure after 120 days of delinquency, consistent with GSE and FHA timelines. In our experience, PennyMac foreclosures move faster than the industry average in non-judicial states, with many completing in 90-150 days from referral. In judicial states, timeline depends on court backlog. PennyMac has been cited in multiple state audits for procedural irregularities in foreclosure filings — including potentially defective assignments and affidavits — which can form the basis of a defense.

Consumer Complaint Patterns

PennyMac consistently ranks in the top 10 most-complained-about mortgage servicers in the CFPB database. The most frequent complaint categories are: trouble during payment process, struggling to pay mortgage, incorrect information on credit report after loss mitigation completion, and loan modification application processing delays. A recurring pattern in complaints: borrowers report submitting complete loss mitigation packages, receiving no response for weeks, then receiving a foreclosure notice while their modification was ostensibly 'under review.' This pattern of potential dual tracking violations recurs throughout public complaint data.

Regulatory Actions & Enforcement

PennyMac has been subject to CFPB supervisory examinations resulting in Matters Requiring Attention (MRAs) related to loss mitigation processing timelines and dual tracking compliance. The CFPB's 2023 Supervisory Highlights identified servicing issues at several large non-bank servicers with practices consistent with complaints received about PennyMac. PennyMac has also settled state-level investigations related to servicing practices.

Homeowner Tips for Working with PennyMac

1. Contact PennyMac's loss mitigation department directly at 866-545-9070 rather than going through general customer service. 2. Submit documents via the PennyMac USA portal, by fax (document the fax confirmation), and by certified mail — triple-track your submissions. 3. Request a complete loss mitigation application package and a written statement of available programs within 5 business days of initial contact. 4. Keep a detailed call log: date, time, representative name, employee ID, and summary of discussion. 5. If you receive a foreclosure notice while your modification is pending, immediately escalate to PennyMac's compliance department AND contact an attorney — this is the most common dual tracking violation pattern. 6. Check your credit report after completing loss mitigation — borrowers frequently report credit reporting errors after PennyMac loss mitigation.

How Professional Law Assist Helps with PennyMac Foreclosures

Professional Law Assist has extensive experience with PennyMac foreclosure cases. PennyMac's rapid foreclosure timeline combined with its loss mitigation processing bottlenecks creates a dangerous combination — homeowners are often caught between a slow modification review and a fast-moving foreclosure. We intervene to enforce RESPA timelines, demand compliance with dual tracking prohibitions, and — when necessary — file litigation to stop a sale scheduled in violation of federal servicing rules. Contact us the moment you receive a Notice of Default from PennyMac.

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Frequently Asked Questions — PennyMac

Why does PennyMac move to foreclosure so quickly?
PennyMac's servicing model originated in distressed portfolio management, and its operational systems are optimized for efficient (fast) default processing. Combined with its scale (millions of loans), automated triggers can initiate foreclosure referrals faster than at small servicers. This is precisely why early legal intervention matters — the gap between a modification review and a foreclosure sale is narrower at PennyMac than at many other servicers.
How do I escalate a problem with PennyMac beyond the customer service rep?
PennyMac has an Executive Resolution team. Before escalating, document every prior contact. Write a concise letter summarizing: dates of prior contact, what was promised, what happened instead, and the specific resolution requested. Send via certified mail to PennyMac's corporate address in Westlake Village, CA, with copies to the CFPB complaint portal and your state attorney general's consumer protection division.
Can I get my PennyMac loan modified if I'm already in foreclosure?
Yes. You can apply for loss mitigation at any point before the foreclosure sale occurs. However, RESPA's dual tracking protections require a complete application to be received 37+ days before the sale date. If your sale is scheduled in less than 37 days, you need immediate legal assistance — we may seek a temporary restraining order to preserve your modification review rights.
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