Consumer complaint received 2015-08-19
Company: Ditech Financial LLC
State: FL
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Settlement process and costs

Complaint:
On XXXX XXXX, 2015, I applied to refinance my mortgage through my current mortgage company Green Tree Mortgage ( Servicing ). I spoke with XXXX XXXX who introduce me to a HARP program which could lower my interest rates and loan term. He advised, since I had my current loan with them that I could use the balance of my escrow to put toward the amount of the loan or have it refunded to me. He quoted me a new loan amount of {$120000.00} with a payment of about {$990.00}. I then spoke with the loan processor, XXXX XXXX. I asked him about having my current loan escrow balance refunded to me. He first stated that it will be applied to the principal loan. I asked if I had a choice for it to be refunded to me. He said yes, but it will cause your loan to be increased and payments would be higher. ( Enclosed are copies of the emails re-conversation ). He then stated I will send you a copy of the Settlement Statement showing how the escrow balance will be applied to the principal. On the original settlement, Line XXXX ( Principal Reduction Payment to Green Tree- {$300.00}. Line XXXX ( Principal Amount of new loan ) - {$120.00}, XXXX. Line XXXX-Total paid by borrower- {$120000.00}. I still insist on him refunding me the balance because the increase in loan balance and payments would be minimal and I can use the money for other obligations. He said I already did the closing settlement and we are schedule to close XXXX. I will have to re-do closing settlement and re-schedule for Friday, XXXX. He re-did settlement increasing my loan balance {$120000.00}. He said that Line XXXX shows my escrow refund- {$2100.00}. Line XXXX New Loan Amount- {$120000.00} and line XXXX Total Paid By Borrow- {$120000.00}. ( Both copies of closing settlement attached ). My payment increased to {$1000.00}. He stated that I would be getting refunded within 30 to 60 days after the loan closed. Around XXXX, I decided to call to verify the status of refund and learned that they had applied the escrow to the principal. I complained and was giving the run around. I called the processor XXXX and was told he completed the paperwork correctly but it was keyed in the system incorrectly. I asked for top manager in charge and was given the run around. When I finally spoke with a manager to asked why I ca n't get my escrow refund after they have increased my loan amount and payment and no refund. I was told you signed the paperwork and could have disputed within 3 days. How was I suppose to know within XXXX days that the loan processor did n't do what he suppose to had done. He explain the above lines to me to show that he was refunded me the money. You all are the professionals and I as a consumer are relying on you to give me the correct information. Since I saw the amount of my escrow and the increase in loan amount, I assumed that he did what he said. So when I got my mortgage statement for the XXXX payment, they took my loan amount of {$120000.00} subtracting escrow balance- $ XXXXXXXX-new escrow payment- {$2100.00} & $ XXXX= {$120000.00}. Based on the original settlement without the escrow refund my loan amount should have been {$120000.00} subtracting escrow balance $ XXXX= $ XXXX- {$2100.00} & $ XXXX= {$120000.00}. So they added about {$2200.00} to my loan for nothing. I did n't get an escrow refund. This is fraudulent. My loan amount should be at {$120000.00} and not {$120000.00}.

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