Consumer complaint received 2019-01-10
Company: Ditech Financial LLC
State: FL
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
DiTech has refused to promptly endorse {$26000.00} in insurance proceeds as required by Fla Stat s 494.0026 after Hurricane Michael. This obstruction has gone on for longer than 2 months. I sent a final demand letter to them last month with a return self address XXXX envelop to send the endorsed check back to me. I have not heard from them, ever. They have refused to provide written instruction on their process even after specially asking for such written instructions. I am now out of pocket over {$25000.00} in all the expenses I have had to advance to repair my home. Obtaining a simple endorsement should not be this difficult. After all these are funds to reimburse me for expenses that I incurred to preserve property they have a lien on. 

Here is a timeline of events for your information. 

XX/XX/2018 : The home at XXXX XXXX XXXX XXXX in which DiTech has a security interest in was damaged in Hurricane Michael. I immediately notified the insurer and DiTech of the damage by phone. 

XX/XX/2018 : The adjuster inspected the property. The property had a tree fall on it and needs a new roof, new fence, tree removal, and interior work for the leaks. Soon after the adjuster completed his inspection, I paid a tree contractor {$8500.00} to remove the tree from the roof and off the fences. 

XX/XX/2018 : I found a fence contractor and paid a {$6500.00} deposit for supplies for the over 450 feet of fence on the property. 

XX/XX/2018 : XXXX sent me two initial payments by check for the damages, attached. Because DiTech has a security interest in the property, DiTech was listed as a co-payee. I received the checks that week. 

XX/XX/2018 : I contacted Ditech by email and phone asking how to get the checks endorsed and release to me. After waiting over 30 mins on the phone, I discontinued the call. I never received a response to the email other an acknowledgement that you received it and someone would be getting back to me. They never did. 

XX/XX/2018 : I sent a follow up email asking for a response. I never received one. 

XX/XX/2018 : The fence was finished and I paid the remaining balance of {$3900.00} to the fence contractor. 

XX/XX/2018 : I sent yet another email to inquire about the endorsement process. Again no response. 

XX/XX/2018 : I called DiTech customer service hotline again and spoke with an agent who argued with me for 30 minutes. She could not explain your requirements for endorsement and simply told me to endorse the checks and mail them in. When I asked if the money would be kept in a bank account and which bank, she told me that it would be kept in my mortgage escrow account. When I said that didnt make any sense because escrow money had be handled by law a particular way and should be refunded to me in the event of an overage, she chastised me for not knowing the law ( I am a XXXX  ) and continued to argue with me. When I finally asked that she send me DiTechs process for endorsement and instructions in writing either through the mail or an email, she said she couldnt do that, and that I had to write down what she told me. Even after repeated requests, she could not and would not send me any instructions in writing. I politely discontinued the call and sent yet another email to DiTechs customer service - this one a little more direct. Again, no response except an acknowledgment. 

XX/XX/2018 : I hired a roofer ( the wait is now over 8 weeks to get a roof and this was the earliest I have found after getting 3 estimates ). The roofer required a {$9500.00} deposit and will required another {$9500.00} upon job completion. I paid it out of my pocket. 

XX/XX/2018 : Sent a final letter to DiTech via XXXX with the endorsed check and receipts for out of pocket payments and a self addressed fedex prepaid return envelope. I asked that the promptly endorse the checks and return them to me. I have not received a response. My XXXX has not been returned or shipped. 

After fronting {$28000.00} for repairs to my home while holding checks for {$26000.00} from my insurance company because DiTech wouldnt respond or explain to me how to get them endorsed, I began looking at alternatives. Through pinpoint searches on XXXX I managed to find numerous complaints from other hurricane victims whose checks DiTech would not cash or unreasonably delayed. The complaints are here : XXXX XXXX XXXX Same pattern. Same scheme. I suspect part of a coordinated effort to deny people their property when they most need it and earn interest of consumers money.This is unacceptable. I requested that you investigate DiTech 's practice in this area immediately.I am a XXXX   with some financial means to pay these bills, but I can not imagine how difficult it could be for a lay person to navigate these obstacles and delays by DiTech. Especially at a most vulnerable time post storm. 

This is not DiTech 's first problem in this area. The CFPB has disciplined them before. They apparently have not learned their lesson or corrected their behavior. The CFPB should throw the full weight of the agency at repeat violators.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation