Consumer complaint received 2018-10-19
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Ditech Financial LLC (WA)

On Friday XX/XX/2018 I was contacted by Ditech ( email will be attached ) because I had applied for a HEL through another company on a home that Ditech holds my first mortgage on. They were kindly but aggressively trying to persuade me into not doing a HEL but instead doing a cash out refi through them. After negotiating a good deal with a good locked in rate, manager approved lower closing costs and a promise that it would cost me anything or harm me in any way to just let them start the process and show me that they could produce a great deal for me we decided to agree. 
We spent the next almost 2 months diligently responding to every request they had and quickly providing them with every last absurd document request. They would NEVER except bank print outs from our online banking so we had to go to the bank every time to get it printed on bank letterhead. We live 15 miles one way from the bank, had to leave work to accommodate their constant requests and at time cancel our other life 's commitments in order to do our part in assuring that this loan closed. We were asked to have notary used, " source '' everything according to what Ditech said was " XXXX XXXX guidelines '' and resend documents that they already had on file. Ditechs constant used excuse was that everything was a " XXXX XXXX Guideline '' I contacted other mortgage professionals and asked all of our banks and credit unions about what Ditech was saying and they all said " no '' they are using that as an excuse those are NOT XXXX XXXX guidelines. I researched it on XXXX XXXX web site and it did appear to be a fact that Ditech was lying. We were told that funds that I had in a joint account and in accounts that I hold with minor children could not be used to verify reserves being requested even when the credit union holding those accounts wrote a letter stating " yes these are her funds '' and said they except those types of funds all the time. We were then able to verify funds through accounts in just our names. So then Ditech moved to a different topic to scrutinize. After multiple trips to our banks they began laughing every time we would come in saying " oh my what are they making you do now? '' Then we paid an IRS debt off with funds from one of those joint accounts, not wanting to touch our solely personal accounts to do so. Showed a XXXX  balance with the IRS but was finally told the loan couldnt go through because we had used a non approved account to pay that debt. They stated it was XXXX XXXX guidelines and when I sent proof that it wasn't a XXXX XXXX   guideline they then said well it must be a ditech guideline. When I asked to see proof of their guidelines I was told " I don't have access to that, sorry ''. I have dealt with 2 loan processors, XXXX XXXX and XXXX XXXX along with their managers and a 3rd manager, XXXX XXXX, XXXX XXXX and I do not have the others name. 
I started sending emails and leaving voice mails 3 week ago asking what was going on and if for some reason they were not wanting this loan to close because the absurd running around, stress, life disturbances and financial losses they were causing were becoming immense. I was constantly told how sorry they were that it was just needing to adhere to XXXX XXXX guidelines and that they did want to close the loan. I expressed that rates had gone up and that if I needed to look to another company for a loan that I needed to do so asap because rates were climbing. Now 1 week before my rate lock with Ditech was to end I am told because of the IRS payment being made from and account with mine and my minor daughters name on it that the loan couldn't close. Every absurd request they had I met all while thinking that they were intentionally trying to beat me down and make me give up, which I didn't. Then finally once I did what they told me to do ( I was told the IRS debt either needed to be paid in full, set up to be taken out of escrow, or a payment plan refactored into the loan application ) When XXXX from ditech told me these options we both agreed that paying the bill in full immediately would be the quickest way to move forward with closing the loan. Once I paid it in full Ditech used the excuse of the account I paid it from being unacceptable even though the Irs showed a XXXX balance and the bank holding the account I paid if from writing a letter stating that it was my account. They finally had an action that I couldn't fix or change to use as their excuse to not close the loan. Everything else about us qualified and was approved to close. Now we are shopping the deal again and rates have gone up a full point or more, we have wasted months of time, resources, life and stress. 

I am attaching 2 emails but have 2 months worth of correspondence proving these issues if needed