Consumer complaint received 2017-07-31
Company: Ditech Financial LLC
State: VA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
Ditech servicing LLC has made continuous errors on my account for over one year. I refinanced with Ditech for a HARP Loan in or around XX/XX/XXXX. ( They were already the current servicer of my previous loan ) I have been providing them partial payments of {$500.00} for over 9 months every 2 weeks from XX/XX/XXXX to XX/XX/XXXX ( partial payments was a normal practice I adhered to on my previous loan ) My current mortgage due monthly is {$880.00} Ditech has been funneling bi-weekly payments into an account called unapplied funds account. ( Their policy is that partial payments are sent to this account until the full payment is received and then is to be applied ) They have not been adhering to their own policy and have accrued funds in their unapplied funds never applying to payments causing late fees. From XX/XX/XXXX XX/XX/XXXX, I called and spoke to representatives, supervisors, and directors and was told that the continued error that was made would be fixed. In XX/XX/XXXX, my accountant and I noted discrepancies on an issued XXXX from Ditech and it prompted an inquiry and a further review revealed additional errors being applied to my account. In XX/XX/XXXX, a director XXXX XXXX and a loan specialist explained to me that Ditech has no way to recognize partial payment or overpayments and it was contributed to an upgrade in their system. A reallocation of funds was conducted to apply for payments correctly from the last 9 months. After the reallocation was completed, I was informed that my loan was paid up 1 month in advance. After the reallocation was applied, I noticed my principal balance increasing. The reallocation applied caused my account to go into default, caused additional late fees to accrue and again I was never made aware of. I was sent four collection letters and a representative came to my home. In XX/XX/XXXX, I received a notice stating my escrow was short and my monthly payments would increase. Ditech alleged my property taxes had increased. However, the city treasurer refuted that claim when provided in writing that my taxes had remained the same. Ditechs AVP alleged Ditech received my storm water bill from the city and would take over paying that. I have been paying my storm water bill on my own through web bill pay and was current on my bill. Another escrow analysis was completed on XX/XX/XXXX and I was sent a notice stating I was in surplus of {$380.00} and my monthly payments would be decreasing Another analysis was completed on XX/XX/XXXX and I was sent a notice stating Im in a shortage for {$240.00} and my monthly payments would be increasing They have contacted my property insurance company and requested the name of the mortgagee be changes to several names, one of which is listed as associated affiliates. They have ignored all requests for all the name of associated affiliates XX/XX/XXXX Today XX/XX/XXXX I spoke with a representative XXXX regarding my account. I was informed that although a payment of {$880.00} was sent to you last month for XX/XX/XXXX payment XXXX was applied to principal and interest and that the remaining was applied to principal. She explained unless explained where to apply the overage it will not be applied to escrow unless indicated. What the XXXX is wrong with your loan processing department? My refinance paperwork indicates that my monthly payments is XXXX in which XXXX is allocated to principal and interest and {$120.00}. YOUR DOCUMENTS INDICATE THIS. Now I am being told that I have to indicate how the amount YOU states to pay monthly should be applied. My first payment for this loan was sent web bill pay and it was sent for the total amount and the amount was applied to Escrow, so why is it a problem now. Then I was told by a supervisor I cant be transferred to loan processing. If this is the department who keeps screwing up my payment and rejecting the instructions provided to them on the check and via email why cant I? My bank confirms you received and cashed my check sent on XX/XX/XXXX for my XX/XX/XXXX payment and no one seems to know where it is. You cashed it, so why cant it be found? And I have yet to receive my pay off amount as told by XXXX XXXX which was sent on XX/XX/XXXX and I am not in receipt of it

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