Consumer complaint received 2020-10-08
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Shellpoint Partners, LLC (SC)

Our mortgage experience with GREEN TREE SERVINCING originated out of our original loan in XX/XX/XXXX with CONSECO FINANCE f/n/a GREEN TREE FINACIAL SERVICING. While my complaint is directly related to the current actions of GREEN TREE SERVICING and DITECH FINANCIAL it is a direct result of a clear and calculated plan of these entities and their owners to circumvent and violate consumer laws using name changes, bankruptcy and/or creating new entities to shield their assets and avoid being held accountable and denying consumers the means to seek legal remedy caused by their actions. While the actions alone of a corporate name change, creating a new entity or filing bankruptcy may not be illegal doing them in concert with  knowledge of avoiding the consequences of wrong doing and/or to avoid laws designed to keep necessary checks and balances in place to protect consumers transfers to a system of fraud and deceitfulness. 

Prior to becoming CONSECO FINANCE violations of consumer laws relating to mortgages began with GREEN TREE FINANCIAL and its violations of regulation Z and D pertaining high cost mortgages as this directly relates to our current situation. GREEN TREE FINANCIAL SERVICING was aware of these violations and stated such in its PROSPECTUS SUPPLEMENT filing with the SEC document ( XXXX ) date XXXX-03-02 page 33. The practice of shielding itself from the consequences of these violations are stated in GREEN TREE FINANCIALS SEC filing S-/3A ( XXXX ) under recent developments section S-22 where it puts forth its reasoning as DUE TO VARIOUS LAWSUITS IN BOTH THE UNITED STATES AND THE DISTRICT OF MINNESOTA that it would be changing its name to CONSECO FINANCE. As part of the name change a company was CONSECO SECURITIZATION was created and it stated the purpose of its creation the direct quote from its PROPESTUS ( see below ) CONSECO FINANCE SECURITIZATIONS CORP.

Conseco Securitizations is a wholly owned subsidiary of Green  Tree. It was formed on XX/XX/XXXX. Conseco Securitizations may only engage in the business of acquiring pools of contracts from Green Tree and transferring those contracts to trusts such as the trusts described in this prospectus, and activities incidental or related thereto. The principal executive offices of Conseco Securitizations are located at XXXX XXXX  XXXX, XXXX XXXX, Minnesota XXXX and its telephone number is ( XXXX ) XXXX. 

Conseco Securitizations has taken and will take steps in conducting its business that are intended to make it unlikely that a bankruptcy of Green Tree would result in the consolidation of the assets and liabilities of Green Tree and Conseco Securitizations. These steps include the creation of Conseco Securitizations as a separate, limited-purpose corporation pursuant to a certification of  incorporation containing restrictions on the permissible business activities of Conseco Securitizations, requiring that Conseco Securitizations have on its board of directors at least two directors who are independent of Green Tree, and requiring that all business transactions or corporate actions outside of the ordinary course of business be approved by the independent directors. 

Once GREEN TREE FINANCIAL became CONSECO FINANCE the violations continued and according to CONSECOS filing with  SEC ( XXXX file date XXXX ) they were aware of these violations citing particularly the consequences of high risk loans as part of their loan pools. Pursuant to rule 12CRF ( 1026.32 ( d ) ) in particular relating to balloon payments as this is what has caused our current situation CONSECO FINANCE knew or should have known that the law provided a means test to identify high cost mortgages that may have been in violated certain provisions pertaining to balloon payments. Again after these violations posed legal jeopardy to CONSECO it moved to change its name back to a form of GREEN TREE FINANCIAL SRVICING to GREEN TREE  SERVICING on XX/XX/XXXX under which it began servicing our loan. 

In XXXX of XXXX we received a letter from your BUREAU regarding a settlement with GREEN TREE SERVINCING ( see attached ) however our mortgage was then being serviced by DITECH FINANCIAL as a result of a merger between DITECH MORTGAGE CORP, DT HOLDINGS LLC and GREEN TREE SERVING ( see below ) STATE OF DELAWARE CERTIFICATE OF MERGER Pursuant to Title 6, Section 18-209 of the Delaware Limited Liability Company Act, the undersigned hereby executes the following Certificate of Merger : FIRST : The surviving limited liability company is Green Tree Servicing LLC, a Delaware limited liability company, and the corporation and limited liability company being merged into this surviving limited liability company are : DT Holdings LLC, a Delaware limited liability company, and Ditech Mortgage Corp, a California corporation.

SECOND : The Agreement and Plan of Merger has been approved, adopted, certified, executed and acknowledged by each of the constituent corporations and limited liability companies pursuant to Title 6, Section 18-209 of the Delaware Limited Liability Company Act.

THIRD : The name of the surviving limited liability company is hereby amended to Ditech Financial LLC, a Delaware limited liability company ( as such surviving entity, the Surviving Limited Liability Company ).

FOURTH : The mergers are to become effective as of XXXX XXXX  EDT on XX/XX/XXXX. 
FIFTH : The Agreement and Plan of Merger is on file at XXXX XXXX XXXX, XXXX XXXX, XXXX, FL XXXX, the principal place of business of the XXXX XXXX XXXX XXXX. 
SIXTH : A copy of the Agreement and Plan of Merger will be furnished by the XXXX XXXX XXXX XXXX on request, without cost, to any stockholder or member of the constituent corporations or limited liability companies, as applicable. 
[ The remainder of page intentionally left blank. ] ________________________________________ IN WITNESS WHEREOF, said XXXX XXXX XXXX XXXX has caused this certificate to be signed by an authorized officer, the XXXX day of XXXX, XXXX. 


GREEN TREE SERVICING LLC By : Name : XXXX XXXX XXXX : Assistant Secretary [ Certificate of Merger ] ________________________________________ State of Delaware Secretary of State Division of Corporations Delivered  XXXX XXXX  XX/XX/XXXX FILED XXXX XXXX  XX/XX/XXXX SR XXXX - File Number XXXX Through the numerous conversions and mergers our mortgage was subjected to violations of consumer housing and credit laws as outlined in the original complaint filed by your Bureau. 
We were aware that our loan consisted of a balloon payment and attempted to refinance our loan on XX/XX/XXXX, through XXXX XXXX XXXX. We requested the payoff amount for the loan per the request of XXXX XXXX XXXX and was approved for the loan however at the closing of the loan GREEN TREE SERVICING would not accept the payoff amount they initially quoted and required an additional XXXX XXXX dollars. Though we paid our mortgage and was current at the time we were unable to get the approval for the additional funds as it was suggested that we do an upgrade to the home to get the necessary amount for the loan through the appraisal which was a 20ft x 18ft covered porch as an addition to the home we exhausted our saving in an effort to secure the loan. ( we were unable to get a copy of the loan document but attached is a copy of the appraisal ). 
As the loan neared maturity we reached out on numerous occasions primarily through the office located here in XXXX SC ( XXXX XXXX XXXX XXXX XXXX ) until it was closed to get help from GREEN TREE SERVICING even requesting help in XXXX, XXXX under HAMP we did receive the necessary documents and instructions on how to file ( see attached ) and submitted them to GREEN TREE SERVICING Loss Mitigation, XXXX XXXX XXXX XXXX XXXX XXXX AZ and received no response after numerous calls and their continuous documentation request in which we complied but with no results. Whereas the above stated events are directly related to the loan while under GREEN TREE SERIVING the practices only continued through the conversion to a new name occurred but individual ownership remained through the merger in which I believe is not just DITECH FINANCIAL or GREEN TREE SERVICING but the institutional practice of DITECH FINANCIAL HOLDING CORP f/k/a XXXX XXXX XXXX XXXX and its owners. DITECH continued the same practice of harassing with multiple calls within the hour several hours during the day in attempts to collect on payments only after a day or two late that fell within the ten day grace period, excessive fees and the refusal to accept proof of insurance. DITECH has continued the practice of GREEN TREE SERVICING in refusing to or engaging in any efforts to modify the loan. We did request a loan modification from DITECH because the balloon payment was due received the instructions and filed necessary documents with DITECH and again no response and filed again after we filed bankruptcy through the court portal ( see attached ). DITECH has also continually inflated the amount of the balance on the loan. In the notice of default letter ( see attached )  dated XX/XX/XXXX identifying the amount owed as {$80000.00} which we contend is not correct while in later statements after they filed bankruptcy and prior to the sale of its company starting in XXXX stating the balance to be as much as {$720000.00}. I made numerous calls to inquire about the discrepancy and was simply told this is what their records reflected. 
While we were under bankruptcy here in South Carolina because of the balloon payment our agreement was to pay {$600.00} per month which would be withdrawn from an account set up by DITECH FINANCIAL with XXXX XXXX XXXX  the account information was changed during the process and ultimately closed in XXXX of XXXX and. Being under bankruptcy itself in the SOUTHERN DISTRICT OF NEW YORK COURT as part of its reorganization plan DITECH agreed to sell its assets which moved it to close the account. 
In XXXX of XXXX we received notification of a motion seeking relief was filed in the U.S BANKRUPTCY COURT FOR THE DISTRICT OF SOUTH CAROLINA by NEW RESIDENTIAL MORTAGAGE dba SHELLPOINT on behalf of XXXX XXXX XXXX  acting as trustee for GREEN TREE SERVICING because of failure to pay. I reached out to the consumer claims representative over the DITECH bankruptcy in SOUTHERN DISTRICT OF NEW YORK XXXX XXXX ( XXXX email XXXX ) in conversation she explained the statements above as to why the account was closed but that we should have been receiving statements from SHELLPOINT as the new owner/servicer of the loan. I also pointed out that we received notification back in XXXX that company GREEN TREE SERVING was resolved in a merger ( see above ) she requested the information we received identifying GREEN TREE SERVICING as the holder of the trust. 
I sent a request to Ms. XXXX per our conversation through email for a copy of any statements SHELLPOINT would have sent in XXXX and was only provided a notice of transfer ( see attached ) sent by DITECH to the bankruptcy attorney dated XX/XX/XXXX though our account was closed and we had no means to make any payments to the account. Though the law requires that statements be sent unless an exemption is claimed under the Truth in Lending Act ( Regulation Z sec 1026.41 ) as we did received periodic statements from DITECH throughout the our bankruptcy. We believe this was intentional and used to provide a reason to file the motion. 
Our current situation is a direct result of the numerous violations ( including those they agreed to refrain from committing with your BUREAU ) of mortgage and other consumer laws perpetrated by GREEN TREE SERCVICING and DITECH FINANCIAL a company that pursuant to its merger agreement should have no longer but an announcement was made preempt the announcement of its settlement with your BUREAU and the FTC to protect itself from any potential lawsuits. While GREEN TREE and DITECH are direct offenders they are organizations who conduct  business as laid out by those who manage them, these companies along with others fall under the ownership of DITECH HOLDING CORP f/k/a XXXX XXXX XXXX and the individual that manage them. 
XXXX XXXX XXXX Chief Executive Officer and President, Director XXXX XXXX XXXX ( 1 ) Executive Vice President and Chief Financial Officer XXXX XXXX XXXX, XXXX Executive Vice President and Chief Risk and Compliance Officer XXXX XXXX Chief Operations Officer XXXX XXXX XXXX Senior Vice President and Chief Accounting Officer XXXX XXXX XXXX Senior Vice President and Treasurer XXXX XXXX XXXX General Counsel, Chief Legal Officer and Secretary XXXX XXXX XXXX Senior Vice President and Chief Human Resources Officer XXXX XXXX Chief Audit Executive XXXX XXXX Senior Vice President of Financial Planning and Analysis and Corporate Development XXXX XXXX Chief Marketing Officer XXXX XXXX XXXX XXXX XXXX Vice President, Business Integration XXXX XXXX Senior Vice President XXXX XXXX XXXX Chairman of the Board XXXX XXXX XXXX Director XXXX XXXX XXXX These companies and along with the mangers leave in its aftermath families such ours in financial disarray along with the emotional stress and other loss financial opportunities.