Consumer complaint received 2023-05-01
Company: LD Holdings Group, LLC
State: OR
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
This issue concerns my first payment to LoanDepot for my mortgage. The payment was due XX/XX/XXXX, with a grace period until XX/XX/XXXX ( a Sunday ). I had my credit union mail a check on XXXX and was told it should arrive XXXX. On XX/XX/XXXX no payment had been processed by LoanDepot, but the money had been deducted from my account when the check was issued. 

I called LoanDepot on XX/XX/XXXX to sort out the issue. I was told they had not processed my check and that I could pay by ACH to avoid any complications with late fees. I set up and made an ACH payment while on the phone with the representative who assured me the check would not process as payment b/c I had made the XXXX payment. The website asked me to verify that I knew another payment existed. I raised this with the representative who told me to make the ACH payment. 

After making the XXXX payment to LoanDepot, I contacted my credit union via message as they had closed for the day ( they are east coast ). I called the XXXX the next day and was told that the check had already processed on XX/XX/XXXX. LoanDepot had double charged me while I was in phone conversation with their representative who instructed met o make the second payment. 

I called LoanDepot on XX/XX/XXXX to ask that my money be returned. I was told that I could not have my money returned via XXXX as I had submitted a paper check. At this point, both had been ACH and paper checks had been processed by LoanDepot. I was told that they would mail me a refund check in XXXX business days. I asked for an ACH return instead and was told that " they don't normally do that '' and " payments must be returned in the method given '', which should have included ACH as they processed both. 

I informed the representative that this timeline was unacceptable, because I had other bills that the money was to be used for. The case was escalated when I explained the rampant mail theft and check fraud that blights the country, but is concentrated heavily in Oregon where I live. I was offered a FedEx tracked delivery of my check, which I accepted on the condition it be sent overnight. I incorrectly assumed LoanDepot would send the check that day. 

The next day I received an email that LoanDepot had attempted to contact me. I emailed back ( my preferred method as it gives me a record to use whereas the calls that LoanDepot tries to use as primary method of communication only provide them with a recorded record of the conversation ) and asked if the check had been sent and if I could have the tracking number. The representative seemed to have forgotten we spoke and agreed on the fedex delivery method of a check. My case was escalated. 

It took until XX/XX/XXXX for LoanDepot to mail me a check, no explanation was given as to why it took so long to get a tracking number. I had frequently done such tasks in a single hour both at work and at home. During the time it took them to mail the check I accrued interest charges on the unpaid balances of my credit card. LoanDepot representatives kept calling me, and emailing. I responded only in email asking if they had a tracking number or an XXXX refund for me, or would like to talk about recompense for my finance charges. I was asked for documentation, but given the extraordinarily bad service and information management ( as well as the abrupt demand for my personal information ) I did not feel comfortable sharing any additional financial information. I informed the representative that unless they were delivering me payment or related information that we had no reason to speak. 

The normal process takes 3 days to mail a check, and then mailing and account clearing time. This is an unacceptable means of returning funds to consumers, especially in light of rampant mail theft and check fraud issues. Institutions like LoanDepot should be required to immediately remit all incorrectly debited funds through the most expedient method for the consumer, which would frequently be electronic, such as XXXX. Allowing LoanDepot to hold my {$2500.00} payment from XX/XX/XXXX through XX/XX/XXXX when I was able to deposit the check gave them 9 days of interest earned while I suffered 9 days of accrued interest. They should be required to disgorge not only the finance charges I incurred, but also all gains related to the monies to which they had no right. This should be a blanket coverage rule that affects all servicers of consumer financial products. 

The sloppy, misinformed, and sometimes deceitful practices of servicers like LoanDepot are abusive to consumers and rob them of wealth in subtle ways. The lack of consumer choice in this market makes it impossible for me to quit a relationship with a bad entity. Thankfully LoanDepot sold my mortgage so I can completely sever ties with them. 

The chaotic nature of their communications during this event as well as the delayed resolution because of case escalation indicate material systemic weaknesses in their compliance processes, from systems to staff training. I strongly recommend that their operation be examined in the wake of these circumstances as I believe they are likely systemic and affect a great many consumers as LoanDepot is " the nation 's largest mortgage lender ''. The recent market changes in mortgage post-covid have severely impacted revenues at lending firms. Servicing compliance is a low-priority piece of their operations that has dramatic effect on consumers lives. The drop in equity and revenue of the company have likely underfunded critical compliance functions that need more resources during an economic downturn to meet consumer needs and the requirements of compliance regulation.

Company response to consumer: Closed with explanation