Consumer complaint received 2017-03-09
Product: Mortgage — Conventional fixed mortgage
Issue: Application, originator, mortgage broker — 
Company: Ditech Financial LLC (CA)

This complaint against Ditech Financial LLC has to do with increasing origination fees during the loan application process, and that I had to pay an upfront appraisal fee which was to be reimbursed when the loan went through. After promising no closing costs to me to refinance an existing loan, Ditech loan officers stalled the loan process, increasing loan fees at each contact even though no new information was requested from me. 

In XX/XX/XXXX I got a letter from Ditech advertising that I could lower my existing loan interest rate at XXXX closing cost to me. After receiving the letter from Ditech, and I called about it and spoke with XXXX. 

XX/XX/XXXX I activated an online account and signed all the forms and provided all the necessary paperwork Ditech requested. 
XX/XX/XXXX I received the loan papers and the loan estimate. The origination fee was {$130.00}. I questioned about the fee and the loan amount and she said that all would be updated and I would not pay any fees at the closing. I also asked if they needed more financial information. I have other checking accounts and cash assets, stock accounts etc. and she said " No, the amount of money in my main checking account should be enough ''. I agreed to pay the appraisal fee, which was to be reimbursed at the closing. I also asked that they be sure I would get the loan before I did this. She said they would try their best that I did not loss the appraisal fee and the rate was locked in for 60 days ( XX/XX/XXXX ). 
XX/XX/XXXX I received an " Approved by Ditech '' email. At this time I heard from another Ditech person, XXXX, that an appraiser of their choice would call me. 
XX/XX/XXXX An appraisal was done on the house. I had to pay up front for the appraisal, {$450.00}. 
XX/XX/XXXX I received a new Loan Estimate. The origination fee was now {$390.00}. 
XX/XX/XXXX Origination fee is now up to {$600.00}. 
XX/XX/XXXX Two days after the 60 day lock in date expired, I received yet another Loan Estimate with the origination fee now {$1000.00}. No new information had been requested from me since XX/XX/XXXX. 

During this time I wondered why this was taking so long. Looking for information on loans, I found this story : " Improperly charging them to extend their promised interest rate when their mortgage paperwork was delayed. The employees say the delays were usually the bank 's fault but that management forced them to blame the customers. '' " Here 's how the process works : A loan officer starts a loan application for a client ... The loan officer then prepares a credit memo to submit the entire file to the processing department and underwriting department for review. The process should not take more than 60 or 90 days ... 
During this period, the bank allows customers to " lock in '' the quoted interest rate on the mortgage .... If the deadline is missed, and rates have gone up, the borrower can extend the initial low rate for a fee, typically about {$1000.00} to {$1500.00}, depending on the size of the loan. '' XXXX I waited to hear from them and finally I emailed XXXX. 
XXXX She got back to me that they had recalculated my income and it was not enough to qualify for the loan. She suggested I put my spouse 's name on the loan to combine our incomes. My credit rating is XXXX and spouse 's is XXXX. 
XX/XX/XXXX One quarter of a point was taken off the origination fee after I complained about it again. {$760.00}. 
XX/XX/XXXX I called and asked why was n't it back to the original promise of no fees? 
XX/XX/XXXX We both received a email denial notice from yet another person named XXXX. The reason for denial was " Excessive obligations in relation to income. '' They did n't have the courtesy to call me directly.