Consumer complaint received 2019-11-19
Company: Ditech Financial LLC
State: MD
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
Loan # XXXX XX/XX/XXXX Last XX/XX/XXXX I was in a car accident with my children on their way to school & my car was totaled. On XX/XX/XXXX when I called to make a mortgage payment the rep told me that we were 90 days behind and I had to make a payment of XXXX which made no sense bc in XXXX I had made two payments totaling XXXX, one for XXXX and another for XXXX the rep told me that if I didnt bring the account current we would face foreclosure. The payment was returned by my bank because my car rental was holding XXXX against my bank account. I paid two payments in XXXX totaling XXXX, XXXX and XXXX which by all accounts would have brought the account current although the rep when I made my payment at the beginning of the month told me that the system was going through a conversion back in XXXX and it caused some issues with payments being applied so once it was corrected my account would be updated. 

My husbands oldest daughter was in a car accident XX/XX/XXXX and suffered XXXX XXXX, she was removed from XX/XX/XXXX on XX/XX/XXXX following her XXXX donation XXXX. The funeral was XX/XX/XXXX and as you can imagine was an unexpected expense & XXXX ( XXXX ) missed almost 9 days of work between the hospital and then planning & attending the funeral, as a result we werent able to pay our mortgage in XXXX. In XXXX I paid XXXX. And in XXXX when I made my payment the rep said we were 3 months behind which made no sense, he went through my account with me and indicated the second payment of XXXX in XXXX was applied incorrectly and he would get that corrected. I paid my XXXX to again bring my account under 90 days & he assured me after the adjustments were made we would owe a partial payment for XXXX. He said it would take 7-10 business days but to check my account, on XX/XX/XXXX I could see XXXX in suspense & no statement printed for the month so I could only go from the website. 

XXXX I called to pay my payment, again systems issues caused a major problem and no one received statements for XXXX per XXXX at ditech customer service. The funds were reversed back off and now we owe for 4 months. The rep told me not to make a payment bc it would mess up her inquiry on getting the funds applied and that the system was forcing her to take a full payment of past due or no payment. This went on for months, every time I called I was told something different. In XXXX I finally talked to someone who agreed to take a payment. Told me no one was reviewing my account and my dispute had to be done in writing Called again in XXXX and spoke to XXXX who helped me file for a deferment he said hundreds of customers accounts were messed up bc of the system changes in XXXX and again in XXXX and they would likely approve it. It was denied. 

Continued making monthly payments & filed a complaint in XXXX with the FEC.  Ditech sent me modification paperwork which we filled out and submitted. Following my complaint I received a call from the audit dept who was looking in to my complaint. I told her we didnt want the modification done until the account was corrected with payment applications. She assured me she was working on it and as long as Im making a payment every month our account wouldnt be sent for foreclosure bc there are so many notes and records on my account. She promised to call after she heard back from the dept that does payment applications long story short it wasnt resolved and turns out our modification was cancelled the auditor XXXX did that bc I told her we wanted to make sure we got the account corrected first obviously we didnt just want the account rolled under the carpet in a new loan without answers on our payments we made. We stopped receiving statements during this time while is was under review and was assured that they would work with us to get the account caught up since so many home owners accounts were credited incorrectly. 

Final outcome was the Ditech can apply overpayments to extra interest or principal any time they want to. XXXX told me unless I can make 2 full payments dont even bother paying extra each month bc we will continue to have issues with payments being applied to extra interest and principal bc the computer doesnt know what to do. This is INSANE, your reps tell customers to pay more than a payment, the difference goes to unapplied funds until a full payment is satisfied. The billing statements say it now as well even though their audit department is now saying otherwise. 

Paid another payment for XXXX and preset a payment of XXXX ( 2 full payemts for XX/XX/XXXX ). In the meantime that rep told me our modification was cancelled and offered to mail the intake information ( 2 pages ) that needed to be filled out and mailed back before a packet could be sent to us. I logged in to our account and all of the payment history access was gone, the site said we apologize this function isnt available at this time and remained that way. 

On XX/XX/XXXX I filed another complaint against Ditech for fraudulent account activity since they continue to come up with different scenarios about the adjustment in XX/XX/XXXX. XX/XX/XXXX when I called to make a payment and XXXX ( yup same guy from XXXX ) said your balance is XXXX and your account is being reviewed for foreclosure as of XX/XX/XXXX. He explained to me that my payment on XX/XX/XXXX for XXXX was returned by my bank and not applied to my account, which is NOT true, he said oh ok it was received but the account is still in foreclosure and then asked how he could help.. I said I had spoken to him before and to please review the notes, we were on the phone for almost an hour, he promised to talk to his supervisor and call me back which he did. He told me that XXXX was applied to XXXX & XXXX payments - after several loud words explaining we wouldnt be this far behind if that was the case, his boss was saying no its correct. Finally, they reviewed everything and again have to send it for review again because the system shows we were current and then in XXXX  4 months behind. 

I went back through my statements and the financials dont add up. For example, interest showed paid through XX/XX/XXXX shows XXXX but when I add up the interest applied for the year ( including the additional interest in payment history it shows XXXX. Also, in XX/XX/XXXXwe had a deferral, yet even though I was caught up starting in XXXX it was showing a past due balance and carried over each month. 

The problem is as a consumer we have to rely on your website for information, Im told the payment history isnt correct. We rely on statements, Im told the system caused issues and they arent accurate, we havent gotten emailed statements in Months. Every time I call Im told something different. Until all this mess we were never 90 days on a mortgage let alone 120 DAYS or more. What Im asking is for help, for you to see how Ditech played a role in this mess and to work with us either on a modification or a deferral. We only owe XXXX on this mortgage and this house has been our home since XXXX & we deserve a chance to keep our home. 

Also, their account status page shows XXXX past due even though our payment is XXXX how could we be behind 144 days. 



Updated XX/XX/XXXX Modification was denied, first it was because our payments would be too high if they rolled in our past due balance, next rep said our lender doesnt allow past due balances to be capitalized on which is fancy for they just dont allow modifications, so totally waste of my time to fill out that paperwork, collect all the documents and submit to them. Loss mitigation also told the Hud counselor that our application was incomplete even though I have a letter dated XX/XX/XXXX that says Ditech recently received your application for loss mitigation for the above referenced account. At this time Ditech has determined that as of XX/XX/XXXX that application is complete and we are evaluating that account for loss mitigation options they have zero credibility The Hud counselor faxed over account authorization paperwork to Ditech on XX/XX/XXXX, as of XX/XX/XXXX Ditech continues to tell him it has not been processed which prevents him from talking to them - hes spoked to the XXXX and he intends on filing a complaint since it appears they are intentionally stalling having any discussions with regard to our account, he said there are a lot of discrepancies he needs them to explain. 

On XX/XX/XXXX in the evening I received a response to the CFPB complaint I filed in XXXX, basically saying there was no misapplication of funds and they included a full account history. Here are my findings that both the Hud Counselor and  XXXX XXXX from Ditech have copies of : My insurance broker at the time confirmed yesterday that we held a policy with XXXX from XXXX when we switched to XXXX until XX/XX/XXXX when we switched to XXXX XXXX. I spoke to XXXX from Ditech Loss Mitigation yesterday who confirms in XX/XX/XXXX the account was sold by XXXX to Greentree, the insurance didn't change. You can see in the attached file on XX/XX/XXXX when they were doing the '' system conversion '' there are multiple deferrals, they mentioned that's why I wasn't eligible for one bc I've had too many. Well the deferral amounts match, to the $ the insurance payments that were made listed below by date : XX/XX/XXXX {$2300.00} + XXXX No payment to insurance in XX/XX/XXXX from what I can see XX/XX/XXXX {$1500.00} XXXX XX/XX/XXXX insurance payment of 1109.00 was made and then credited back ( XXXX said they had my ins on file but couldn't explain why in XXXX they took another deduction for ins and also no record of the credit going in to my account )XX/XX/XXXX {$2300.00} XXXX XX/XX/XXXX  {$2300.00} + XXXX This information was sent to XXXX XXXX on Friday XXXX XXXX The ins payments stopped in XX/XX/XXXX, nothing after that, although XXXX remained our provider for XX/XX/XXXX through XX/XX/XXXX. When we switched insurance on XX/XX/XXXX to XXXX XXXX I had to email Ditech the insurance documents 3 times and XXXX XXXX had to fax it twice before it was confirmed on our account. 

Furthermore, if the deferrals were for false insurance payments and not past due payments as they told me they were than they should be reversed and I should be approved for an actual deferall. XXXX also told me yesterday that any payment that was more than a single payment would be used to pay off insurance balances but I couldn't make heads or tails of that in this file. 

My original CFPB complaint in XXXX indicated payments made last XXXX and XXXX were not applied correctly, the complaint was closed when their legal team advised there were no errors, I've attached a file that shows multiple payments were applied incorrectly although their review department told me previously they can apply over payments however they want, XXXX specifically said they can apply extra to principal or interest bc the system does it automatically. This is a record in their service history as well XXXX XXXX XX/XX/XXXX XXXX XXXX   XXXX XX/XX/XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX   XXXX  XXXX XXXX XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX   XXXX  XXXX XX/XX/XXXX XXXX XXXX  XXXX XX/XX/XXXX XXXX   XXXX NC XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX -XXXX Here is a record of the adjustment they made to the error of the payments above on XX/XX/XXXX and then the reversal of the amounts. Multiple reps including XXXX and his supervisor on XX/XX/XXXX told me the funds were applied based on payment errors the system made and my account was then current with additional money that should have been in suspense but they can't explain why it was taken back off on XX/XX/XXXX. XXXX was emailed this as well. XXXX emailed me today, XX/XX/XXXX and said none of her emails shes sent to the research department have been answered Payments XXXX Transaction XX/XX/XXXX XXXX XXXX XXXX Individual Deposit XXXX Transaction XX/XX/XXXX XXXX XXXX XXXX Individual Deposit { A } Automated Transaction XX/XX/XXXX XXXX XXXX Monday XX/XX/XXXX I sent an email regarding reversals in my payment history that were conducted on XX/XX/XXXX and partial reapplication of those funds were completed on XX/XX/XXXX. I originally thought this was during the automatic HAMP modification of our 2nd mortgage but thinking about the dates last night it wasn't and therefore I have no idea what these adjustments are for. 

There are XXXX adjustments on the principal and XXXX on iterest from XX/XX/XXXX-XX/XX/XXXX datedXX/XX/XXXX XXXX was applied to principal and XXXX to interest on XX/XX/XXXX leaving XXXX in allocations missing. 

This morning I pulled the data from the HAMP  period which would have taken place on or about XX/XX/XXXX, I've attached a file with those adjustments and the XX/XX/XXXX adjustments to this complaint. 


This behavior is beyond negligence, this is criminal. The fact that Greentree was accused of fraud and was allowed to change their name to Ditech and continue with fraudulent activity is beyond my comprehension.

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