Consumer complaint received 2016-06-22
Company: Ditech Financial LLC
State: CO
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
I purchased a condo on XXXX XXXX, 2015 closing my loan with XXXX XXXX XXXX meeting all the necessary requirements including hazard insurance coverage. On XXXX XXXX, 2015 ( date of letter ), I was notified that my loan was transferred to Ditech Financial LLC. On XXXX XXXX, 2015 ( date of letter ) Ditech sent a letter titled " Need Hazard Insurance Premium Payment Information Escrow Account. '' The letter essentially requested that I provided my hazard insurance policy, premium, and account information. On XXXX XXXX ( date of letter ), I received another letter from Ditech requesting hazard insurance policy, premium, and account information. I called XXXX XXXX and requested that a declaration page be sent to Ditech and that the declaration page should list my loan number as requested by Ditech. Within the XX/XX/XXXX, XXXX XXXX attempted unsuccessfully to reach Ditech on my behalf due to tele-prompts and authentication steps. I obtained the information from XXXX XXXX and forwarded the information via USPS to Ditech using the address provided. On XXXX XXXX ( date of letter ), I received yet another letter from Ditech with the subject line reading " The Evidence of Insurance Coverage You Provided is Inadequate. '' In this letter, Ditech now describes what they were trying to obtain in the first place which is my Condo 's XXXX, which was provided initially when I closed the loan and should have been obtain with the service transfer. On XXXX XXXX ( date of letter ), I received a second notice from Ditech requesting insurance information. 
On XXXX XXXX ( date of letter ) I received notice that Ditech lender placed hazard insurance with Green Tree Insurance agency, dating back to XXXX XXXX, 2015. After numerous back-and-forth calls, I contacted my HOA and the Condo 's insurance carrier and obtained a copy of the XXXX declaration page citing coverage all the way back to XXXX XXXX, 2015 and faxed it to Ditech using their emergency fax line on XXXX XXXX. On XXXX XXXX ( date of letter ), I received a letter from Ditech notifying me that the lender placed insurance was cancelled. 
My XXXX statement ( dated XXXX XXXX ) showed my XXXX payment the same. However on XXXX XXXX ( post lender placed insurance cancellation ), I receive a statement from Ditech with an increase to my monthly payments ( adjusting my escrow amount ). I then received addition statements with increasing payments. I continue to make my normal payments and called Ditech numerous times -- all to no avail. On XXXX XXXX, I requested a full audit of my account and was told this would take 60 days. I continue to make my regular on-time payments. However, I noticed my payments were not being applied to my account on-line. The payments were being placed in some " un-applied funds '' account. I called Ditech to discuss. They assured the audit is in place and no negative credit report would result. 
On XXXX XXXX, I checked my credit profile and discovered that Ditech reported me late for 60 days, crushing my credit score. On XXXX XXXX, I called Ditech and was told I could dispute the late payment reporting with each of the credit bureaus. As of XXXX XXXX, my payments have not been adjusted and the audit is still at large. But I do see that Ditech is now selectively applying funds from the " un-applied funds '' account. 
Again, throughout this entire debacle I 've may every regular payment and on-time. I simply want my payment amount to return to where it should. Secondly, I want the negative credit reporting removed from my credit profile. And lastly, I 'd like to cancel escrow altogether with Ditech and pay my interior condo insurance and property taxes on my own. 
Given the nature of this complaint this impacts the mortgage servicing of my loan AND fair credit reporting.

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