Consumer complaint received 2019-04-11
Company: Ditech Financial LLC
State: NC
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
My home loan and insurance were recently separated into two different accounts. The home loan account is paid bi-weekly via electronic payment through my bank account. The insurance account is not eligible for electronic payments through the ditech site or my bank for some unknown reason. 

XX/XX/XXXX, prior to the changeover, which indicated a payment due XX/XX/XXXX of {$450.00} and a deferred balance of {$4800.00}. When the new computer system came online, it stated that my payment due XX/XX/XXXX was {$530.00} which represents my normal principal and interest payment. This is, obviously, incorrect. It also states I have and Advance Balance of {$4800.00} - also incorrect - these funds were deferred not advanced and that one word makes a huge difference. 

All payment through the XX/XX/XXXX payment were correctly applied. The following payments were made to the home loan account after XX/XX/XXXX which should have been applied as follows based on daily interest at 11.5 % over 14 days between payments : Beginning principal balance approximately {$42000.00} after XX/XX/XXXX payment but XX/XX/XXXX statement says {$42000.00} so we'll go with that XX/XX/XXXX {$290.00} interest : {$180.00} principal {$100.00} new principal balance {$41000.00} XX/XX/XXXX {$290.00} interest {$180.00} principal {$100.00} new principal balance {$41000.00} XX/XX/XXXX {$290.00} interest {$180.00} principal {$100.00} new principal balance {$41000.00} XX/XX/XXXX {$290.00} interest {$180.00} principal {$100.00} new principal balance {$41000.00} The insurance account was paid on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX with payments of {$75.00} each. The first XXXX were applied correctly leaving me an insurance due amount of {$130.00} due XXXX. However, the payment made on XX/XX/XXXX - though the correct account number which was confirmed with ditech on XX/XX/XXXX was on the check - was applied to my home loan account as {$13.00} interest and {$61.00} late fees. the XX/XX/XXXX payment of {$75.00} was applied to the insurance account. 

Let me be very clear about this : I OWED NO LATE FEES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

However, payments were put into the unapplied account - which while I disagree with the concept I understand that until a full payment is received it can sit there and then be applied and appropriately dated to actual receipt date thereby calculating interest the right way. Reallocating the payment may take a phone call - which I've done before with no problem but not now! I have been paying bi-weekly for seven years  and it as been handled appropriately until this change. 

This is how my payments were applied : XX/XX/XXXX payment {$290.00} to unapplied XX/XX/XXXX payment {$370.00} to interest ( 27 days of interest?????????? ) and {$290.00} was pulled out of the unapplied amount - I don't know where it went!!!!! 
On XX/XX/XXXX someone magically paid {$200.00} worth of late fees that I didn't owe! 
XX/XX/XXXX payment {$180.00} to interest ( at least that's about 14 days of interest but calculated on a very incorrect principal balance ) and {$100.00} worth of late fees that I still didn't owe! 
My insurance payment on XX/XX/XXXX for {$75.00} was allotted to 1 day of interest of {$13.00} on XX/XX/XXXX and on XX/XX/XXXX {$61.00} worth of late fees that I still don't owe! 
XXXX payment was applied to the unapplied account On XX/XX/XXXX I confirmed the insurance account number and asked that the payment due discrepancy be investigated with Breezy On XX/XX/XXXX I was told by a foreigner reading a script that they would not reallocate my payments out of the unapplied amount. 
On XXXX I was hung up on three times before I ever got a human being. 
On XXXX I was told by a foreigner, XXXX, that my payment would be reallocated. 
On XX/XX/XXXX I spoke with a knowledgeable person, XXXX, who stated that the problem would be fixed with the next computer update. 
On XX/XX/XXXX another knowledgeable person, XXXX, explained that the computer system was still not right but the account should be correct by the end of XXXX. 
On XX/XX/XXXX a rude person named XXXX asked me just exactly what did I want him to do that no one else I've spoken to so far had been able to do to which I responded I'd like my payments accurately applied so he sent me to his supervisor XXXX who told me that I shouldn't pay bi-weekly and that she couldn't see any of my payment history but she would send the account to be researched. 
On XX/XX/XXXX XXXX told me that he would take care of moving the insurance payment to the insurance account. 
On XXXX I spoke with XXXX XXXX who was working on fixing my account. I spoke with her again on XXXX when I found out that principal balance is now being reported to be over {$46000.00} when it is less than {$42000.00}. 

There is a reason I pay bi-weekly and it can not be changed. It is not for ditech to tell me how to make my payments as long as they are made timely - which they are! This advance amount is a deferred amount and is not collectable until the end of the loan. At {$5.00} per late fee some 75 months or 6 1/4 years worth of late payments have been appropriated that I never owed. These errors are causing interest to be accruing based on incorrect principal amounts. 

As of XX/XX/XXXX my account is still grossly incorrect and none of my payments made since XX/XX/XXXX have been corrected and 1 of my insurance payments is not applied to my insurance account.

Company public response: Company believes complaint represents an opportunity for improvement to better serve consumers
Company response to consumer: Closed with explanation