Consumer complaint received 2017-08-04 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — 
Company: Ditech Financial LLC
State: CA

Complaint narrative:
This complaint is being submitted on behalf of the borrower by his advocate. There is an executed Third Party Authorization form uploaded to this complaint, along with supporting documents to the claims being made.
The borrower was awarded {$32000.00} in Californias Hardest Hit Funds : Keep Your Home Californias Principal Reduction Program, on or about  XX/XX/XXXX . Per the servicer 's AGREEMENT FOR MODIFICATION, RE-AMORTIZATION, OR EXTENSION OF A MORTGAGE ( HFA Modification Assistance ) ( modification ) dated  XX/XX/XXXX , the borrowers new Unpaid Principal Balance would be {$78000.00} and the monthly payment of principal and interest would be {$590.00} effective XX/XX/XXXX . Attached hereto is the modification for reference.
For an unknown reason, Ditech begun holding monthly mortgage payments on a suspense account beginning  XXXX , based on the loan billing statements. Additionally, the servicer has been misreporting the mortgage debt status to the borrower, both in writing and verbally, leading one to be concerned about what is being reported to the credit agencies. Furthermore, as if the billing statements are not of concern enough, the servicer sent the borrower notices implying the borrower is in imminent default. One of the notices was placed on the borrowers door, presumably, by a servicer representative.
The borrower has attempted to address his concerns to the servicer numerous times. He specifically attempted to speak with his account representative on more than one occasion. Her extension was provided on his  XXXX  loan billing statement, informing him : Your account is now past due. For payment arrangements, please contact your account representative, yet she was never available to speak to him. The representatives that were available to discuss his concerns told him not to worry about it, despite the continued misrepresentation of the debt owed. The borrower is very concerned of being wrongfully foreclosed upon even though he is not in default. Attached hereto please find the borrowers proof of mortgage payments for reference.
The servicer settled a claim with the Consumer Financial Protection Bureau and the Federal Trade Commission on or about  XX/XX/XXXX . It has been previously alleged that the servicer had misrepresented account status to borrowers and credit reporting agencies. It has also been previously alleged that the servicer has failed to honor loan modification agreements. And lastly, it has previously been alleged that the servicer failed to investigate accounting errors disputed. Past homeowners have been wrongfully foreclosed upon based on errors made by the servicer.
The servicer has the responsibility of applying funds adequately. The servicer is also obligated to provide borrowers correct information, both in writing and verbally. The borrower has a right to understand the debt s/he is obligated to pay back. The servicer agreed to maintain a comprehensive data integrity program to ensure the accuracy and completeness of data and other information about consumers accounts [ and to stop ] making material misrepresentations. It appears that the servicer, based on this borrowers experience and supporting documents, continues to be in violation of the Fair Debt Collection Practices Act, Fair Credit Reporting Act, and the Real Estate Settlement Procedures Act. There is an additional concern that the Homeowner Bill of Rights may be in violation due to the single point of contact not being available to properly inform the borrower of any action plan in place to address his concerns.

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