Consumer complaint received 2018-11-07 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Ditech Financial LLC
State: FL

Complaint narrative:
On XX/XX/XXXX, I closed on my home mortgage with XXXX XXXX XXXX XXXX XXXX. My loan was transferred to Ditech in XX/XX/XXXX and problems began with my attempt to make my first mortgage payment. I have never missed a payment ; however, due to Ditech misapplying funds and making unnecessary and unauthorized disbursements from my account, I consistently receive foreclosure information, harassing calls and my once excellent credit has been greatly damaged. 

At the XX/XX/XXXX closing, I prepaid my Homeowners Insurance for 12 months. The closing document indicates this amount as {$1000.00} to XXXX XXXX XXXX XXXX XXXX XXXX Ditech does have this information but I am happy to provide both the closing document and the Declaration page indicating the policy period of XX/XX/XXXX to XX/XX/XXXX upon request. 

In a letter dated XX/XX/XXXX, from Ditech, they state that on XX/XX/XXXX a Ditech representative spoke with XXXX XXXX and XXXX XXXX and was advised the policy expired on XX/XX/XXXX for non-payment but if the remaining balance of {$820.00} was received the policy would be reinstated. The disbursement of {$820.00} was made from my escrow account on XX/XX/XXXX for insurance that I had prepaid for the year on XX/XX/XXXX. Below please find an email from the closing office confirming the policy check was sent and cashed by XXXX XXXX and XXXX XXXX. 

From : XXXXXXXX Sent : Monday, XX/XX/XXXX XXXX XXXX To : XXXX Cc : XXXX I am very sorry to hear you have had ongoing issues with your lender and insurance company. The problem is not with our office. I have pulled my records and have confirmed that the 12 months prepaid insurance collected at closing in the amount of {$1000.00} was paid to the insurance company from our trust account via check number XXXX which was cashed by the insurance company on XX/XX/XXXX for full payment of the policy premium as per the invoice that was provided to my office in connection with the loan package from the lender for the coverage period of approximately XXXX. 

I have called the insurance agent XXXX XXXX who I have copied on this email to provide you with further information as to your insurance policy history. Please communicate with him directly regarding this matter. 

Best, XXXX XXXX, XXXX. 
XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, FL XXXX Cell : XXXX Office : XXXX Fax : XXXX Email : XXXX XXXX Due to ongoing escrow account issues I requested to cancel my escrow account with Ditech. On XX/XX/XXXX, I received an email from Ditech indicating that my request to cancel my escrow account was approved. The email further indicated that beginning XX/XX/XXXX, I would be responsible for my insurance and tax payments. 

I recently learned ( XXXX, XXXX ) that Ditech , without my consent, disbursed funds from my account to Bankers Insurance for home owners insurance for the XX/XX/XXXX year ; while I already had insurance in place through XXXX XXXX XXXX XXXX for the XX/XX/XXXX year. 

This error has resulted in Ditech reporting my account to credit bureaus as delinquent and has significantly impacted my credit score. They have reinstated an escrow account and changed my monthly payment which has again, made my account appear delinquent. 

My home owners insurance with XXXX XXXX XXXX XXXX will be renewed for the year XXXX and I have signed a cancellation with Bankers for the home owners insurance policy I never asked for, never received information from and never knew I had. 

Ditech 's nearly constant misapplication of funds, unauthorized disbursements of funds, and system limitations has destroyed my credit. Their constant harassing phone calls and foreclosure mailings has caused me a great deal of stress. I went through this process in XXXX with the CFPB and the XXXX  regarding Ditech 's misapplication of funds and bogus fees with some relief and am hopeful this avenue will once again be helpful.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation