Consumer complaint received 2018-06-18
Company: Ditech Financial LLC
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Our mortgage is serviced through Ditech Financial LLC. Loan # XXXX, XXXX XXXX XXXX XXXX. We purchased our home in XX/XX/XXXX and our mortgage was through XXXX. In XX/XX/XXXX XXXX sent our loan to be serviced through XXXX XXXX servicing which has since changed to Ditech. 

When we took out our loan with XXXX I asked if this was a simple interest loan. I was told yes, however I can not find anything in the documents stating the Interest type. I : also asked if I could make monthly payments over the required amount due and if the overpayment would be posted to the principal on my loan. I was assured that any overpayments go to the principal thus bringing the balance down more quickly and saving on interest paid. I do have a document from XXXX  that explains that any overpayment is posted to the principal also. My loan payment was originally {$1200.00} a month. Over the years each month my loan payment has decreased {$4.00} each month. In XX/XX/XXXX my statement dated XX/XX/XXXX shows my payment {$1000.00}. I have been paying {$1200.00} each month since prior to XX/XX/XXXX.

In XX/XX/XXXX I changed my homeowners insurance to Ditech which would be included in my monthly payment. My XX/XX/XXXX statement for some reason has my interest due increased from $ XXXXin XX/XX/XXXX to {$500.00} in XXXX  thus  resulting in the payment increase to {$1100.00} plus insurance {$82.00} totaling {$1200.00}. The XX/XX/XXXX. payment should have been {$1000.00} plus insurance {$82.00} totaling {$1100.00}. I called Ditech inquiring as to the increase from {$1000.00} up to {$1100.00}. I was told it was always this way. I spoke with 4 individuals and none could explain the reason for the increase in my interest. The XX/XX/XXXX. statement showed the Insurance 3 year premium on the statement as charges. I asked if this increase in interest due was because of the insurance premium being added to my loan. They assured me they could not do this due to laws. I still think this is why the interest due was higher. 

XX/XX/XXXX statement also showed another increase in the interest due of {$580.00} and my payment going to {$1200.00} plus insurance {$86.00} total payment due {$1300.00}. Once again I called questioning this and no one could explain it. XX/XX/XXXX again the interest increased to {$590.00} with an increase in the payment due. 

All of this brought me to pull out all my statements from the past. With this I realized that since XX/XX/XXXX I have paid more than what was due and no overpayments have ever been posted to the principal. I wrote Ditech a message regarding this and asked them to go back and correct all my payments. I received a notice back saying that they would only correct payments for the past 6 months. When I received the paperwork showing their corrections for the past six months, XX/XX/XXXX through XX/XX/XXXX. It was all hosed up. They backed the payments out and reposted each payment as {$1200.00} due with the overpayment of {$4.00} to principal. Here is what they did : XX/XX/XXXX pmt. reversal {$1200.00}, XX/XX/XXXX Principal pmt. {$4.00}, XX/XX/XXXX payment {$1200.00}. The payment due on the statement was XX/XX/XXXX amount due {$1000.00}. 

XX/XX/XXXX payment {$1200.00}, XX/XX/XXXX Pmt. Reversal {$1200.00}, XX/XX/XXXX Princ. pmt. {$4.00} the XX/XX/XXXX statement payment was {$1000.00} not {$1200.00}. 

XX/XX/XXXX Princ. pmt. {$4.00}, XX/XX/XXXX Pmt. {$1200.00}, XX/XX/XXXX Pmt. reversal {$1200.00}, This payment should have been {$1000.00} plus {$82.00} insurance totaling {$1100.00} not {$1200.00} as on the XX/XX/XXXX statement nor the {$1200.00}. 

XX/XX/XXXX Principal Pmt. {$4.00}, XX/XX/XXXX Payment {$1200.00}, XX/XX/XXXX Pmt. reversal {$1200.00}, this payment should have been {$1000.00} plus {$86.00} totaling {$1100.00} not {$1300.00} as on the XX/XX/XXXX statement not the {$1200.00}.

XX/XX/XXXX pmt. reversal {$1300.00}, XX/XX/XXXX payment {$1200.00}, XX/XX/XXXX Princ. pmt. {$74.00}. The XX/XX/XXXX statement payment was {$1300.00} and should have been {$1000.00} plus {$86.00} totaling {$1100.00} not {$1300.00} or {$1200.00}. The amount to principal should have been {$190.00} not {$74.00}! After this month and all this mess, I cancelled my insurance on XX/XX/XXXX. and have gone back with my original carrier. 

The XX/XX/XXXX statement dated XX/XX/XXXX shows in the Explanation of amount due block, Princ. due {$78.00}, Interest due {$0.00}, insurance due {$86.00}, total due {$160.00}. 
On the lower portion showing payments made it shows : XX/XX/XXXX Pmt. reversal {$1300.00}, XX/XX/XXXX pmt received -Thank You {$1300.00}.

XX/XX/XXXX payment {$1200.00}, XX/XX/XXXX princ. pmt. {$74.00}. The actual payment due should have been {$1000.00} with no insurance as it had been cancelled XX/XX/XXXX. 

This is just the most recent errors I have found. When I made 2 payments of {$1200.00} each in XX/XX/XXXX one was posted with the principal amount due and the remainder to the interest and the next days payment was broken down with a principal pmt and the remainder to interest. It should have taken approx. {$24.00} for one days interest and all the rest should have paid to principal. 

I have gone through my statements from XX/XX/XXXX through XX/XX/XXXX and my balance should be less than {$77000.00} they are showing {$82000.00}. In addition, if they had posted the overpayments to principal, the interest due the following month would have been less than what they charged due to the lower principal balance each month. They refuse to make these corrections and will keep all the extra interest they have collected. THIS IS TOTALLY UNACCEPTABLE!!! 

If they have done this to me how many other mortgagees are they doing this to. They are padding their pocket and that is illegal. 
Could you please help me get this resolved. My husband and I are on limited income and in our XXXX XXXX We can not afford to give this money away. PLEASE HELP!! 

Sincerely, XXXX XXXX. XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX, California XXXX XXXX I do have copies of statements, if I can get your address I would be happy to submit them to you along with whatever histories I can get from them.

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