Consumer complaint received 2016-06-28
Company: Ditech Financial LLC
State: GA
Product: Mortgage
Sub-product: VA mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
Our complaints are : 1. Mortgages being sold or transferred without the approval of the homeowner. 
2. The way that additional principal mortgage payments are applied. 
3. Mortgage payments are not being applied in a timely manner when received there by causing additional interest charges to the homeowner. 
Our VA mortgage has been sold or transferred to the following service providers since XXXX without our approval and with dissatisfying levels of service from each : XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX XXXX and as of the date of this complaint Ditech. We believe additional charges and fees are being tacked onto our mortgage each time those transfers are made. We would like you to stop mortgages from being transferred without the homeowners approval. 
We believe our mortgage was transferred from XXXX because of XXXX late payment which was caused by XXXX changing it 's payment address to Ditech 's address without notice to us. We were charged late fees and additional interest that was not refunded. Our mortgage was transferred as an risky investment despite the fact that we had not missed a payment for the 6 years we made payments to XXXX. 
As of XXXX XXXX, XXXX our mortgage was transferred from XXXX XXXX XXXX to Ditech. The payment made to XXXX went to the wrong address ( which was provided by RCS ) and was finally forwarded to Ditech. After receiving our 1st statement from Ditech dated XXXX/XXXX/XXXX, the unfamiliar statement showed a balance of {$11.00} labeled Unapplied Funds Balance which we did not understand. When we called Ditech to find out, we were told that the additional principal that was mailed with the payment is not automatically applied to the balance and that the homeowner must call in each time to request that it be applied to the balance. THIS IS OUTRAGEOUS!!! and it is not the way the past service providers operated. Additionally, any partial payment is also being held in a separate unapplied funds acct. until the full minimum payment is received, all while the loan continues to accrue interests. XXXX OF THESE INSTANCES IS ROBBERY AND WE WANT IT TO STOP IMMEDIATELY. 
Ditech will need to revise it 's billing statements to show " unapplied funds balance '' relabeled to " additional principal payment '' and clearly show how the additional principal reduces the outstanding balance. 
Additionally, our mortgage is in my wife 's name only and my wife faxed over authorizations to each of the past mortgage service providers allowing the husband to discuss all information about the mortgage, however when it was transferred to Ditech, they said a new form would have to be faxed to them before the husband can discuss the mortgage. We feel this authorization should have also been forwarded when the mortgage was transferred unless revoked by the wife. 
Finally we would like to have the mortgage returned and serviced by XXXX ( because their statements were the easiest to understand ) for the remaining life of the loan. All of these transfers causes the homeowner undue stress and aggravation by having to change banking payment information and being subjected to new and varying rules that XXXX money from the homeowner without their understanding or knowledge.

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