Consumer complaint received 2019-04-30
Company: Ditech Financial LLC
State: AZ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Ditech has chosen to exercise their option of taking payments that are under/above the statement amount and placing them in an Unapplied Funds or Suspense Account. This triggers the 30-day late  report to the creditors. The domino effect is ignited and the customer has trouble keeping their payments current and it snowballs into a Servicer Manufactured Default. 

I am disputing the following late payments for this reason. 
Disputing Late Payment of XX/XX/XXXX : Payment received by Ditech on XX/XX/XXXX see attached statement. The payment should have been {$1800.00}, they received {$1800.00}. Instead of applying the payment, they exercised their option of Unapplied Funds. 
Disputing Late Payment of XX/XX/XXXX : Payment received by Ditech on XX/XX/XXXX see attached statement. The payment should have been {$1800.00}, they received {$1800.00}. Instead of applying the payment, they exercised their option of Unapplied Funds. 
Disputing Late Payment of XX/XX/XXXX : Payment received by Ditech on XX/XX/XXXX see attached statement. The payment should have been {$1800.00}, they received {$1900.00} Instead of applying the payment, they exercised their option of Unapplied Funds. 
Disputing Late Payment of XX/XX/XXXX : Payment received, {$1800.00} by Ditech on XX/XX/XXXX. No Statement available on their online portal, see attached bank records. In addition, a second payment was sent on XX/XX/XXXX for {$2100.00}, amount on statement {$2000.00}. 
Disputing XX/XX/XXXX, not 60 day payment of {$2000.00} was received by Ditech on XXXX, see attached payment history. 

In addition, on my XX/XX/XXXX Statement Date, it  says that no principal was paid in XX/XX/XXXX, but interest totaling {$17000.00} was received and paid. 

While the customer is always trying to catch up and Ditech seems to be in the business of Escrow Abuse and using the Unapplied Funds option to create a Servicer Manufactured Default. It is apparent that I am in this vicious cycle with this company. I can never get ahead as they exercise their option, a loophole to harm hard working paying individuals. This home was purchased in XX/XX/XXXX, it was refinanced in XX/XX/XXXX with XXXX  XXXX who sold the loan to GreenTree, now Ditech, and it has been a challenge to keep up with their pernicious practice of placing the entire monthly payment in a suspense account when only the escrow account is short. This home is our only family asset after losing all savings and retirement in XX/XX/XXXX. My intent is to keep, maintain and repair my home and am trying to refinance to accomplish that necessity while rebooting our finances. 

We are self-employed and our business generates the funds to afford our home. Income does ebb and flow, which has also caused me to be late on occasion, it is not by choice and certainly my intent is to get ahead of the payment, not be in arrears. 

In addition, the Escrow Analysis has been sent annually in XX/XX/XXXX, and suddenly, a second one came in XX/XX/XXXX, just three months later with an increase that mathematically did not add up. I have disputed this directly with Ditech. 

This company is unethical and all I want is my credit repaired in order to refinance with a new, reputable mortgage company.

Company public response: Company believes the complaint is the result of a misunderstanding
Company response to consumer: Closed with explanation