Consumer complaint received 2016-04-19 00:00:00
Product: Mortgage — FHA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Ditech Financial LLC
State: FL

Complaint narrative:
I What is a mortgage modification? 

A loan modification is a permanent restructuring of the mortgage where one or more of the terms of a borrower 's loan are changed to provide a more affordable payment. With a loan modification, the lender may agree to do one of more of the following to reduce your monthly payment : reduce the interest rate. 
Mortgage modification is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower ( i.e. mortgagee and mortgagor ). In general, any loan can be modified, and the general process is referred to as loan modification or debt rescheduling XXXX XXXX XXXX Today, the Consumer Financial Protection Bureau ( CFPB ) and the Federal Trade Commission ( FTC ) took action against Green Tree Servicing, LLC, for mistreating mortgage borrowers who were trying to save their homes from foreclosure. The mortgage servicer failed to honor modifications for loans transferred from other servicers, demanded payments before providing loss mitigation options, delayed decisions on short sales, and harassed and threatened overdue borrowers. Green Tree has agreed to pay XXXX in restitution to victims, and a XXXX civil money penalty for its illegal actions. 

Green Tree failed consumers who were struggling by prioritizing collecting payments over helping homeowners, '' said CFPB Director XXXX XXXX. " When homeowners in distress had their mortgages transferred to Green Tree, their previous foreclosure relief plans were not maintained. We are holding Green Tree accountable for its unlawful conduct THIS IS MY SITUATION THEY TALK ME IN TO KEEP MAKING PAYMENTS THAT I CULD NOT AFFORD ON THE PROMISE THAT THEY WOULD MODIFY MI LOAN MODIFICATION As a servicer, Green Tree is responsible for, among other things, creating and sending monthly statements to borrowers, collecting payments, and processing payments. For troubled borrowers, it administers short sale and foreclosure relief programs provided by the owner of the loan. These " loss mitigation '' programs provide alternatives to foreclosure. Green Tree is responsible for soliciting borrowers for these programs, collecting their applications, determining eligibility, and implementing the loss mitigation program for qualified borrowers. 

The CFPB and FTC allege that Green Tree engaged in illegal practices when servicing loans that it acquired from other servicers. According to the complaint filed by the CFPB and FTC, on a number of occasions, Green Tree failed to honor loan modifications that consumers had entered into with their prior servicers and insisted that the consumer pay their original, higher monthly payment. Green Tree also failed at times to get the information and documentation from the prior servicer that it needed to accurately collect payments from consumers GREEN TREE RECEIVED MY LOAN FROM XXXX WHERE ALSO I WAS PROMISE A LOAN MODIFICATION. PASS THE 6 MONTHS TRIAL PERIOD AND THEN THEY SAID THEY NO LONGER WILL SERVICE MY LOAN AND I LOST OVER 2 TWO YEARS THEN GREEN TREE GAVE ME A SO CALLED LOAN MODIFICATION WHERE THEY CAN NO PLACE ME IN ANY PROGRAM THAT AT THE TIME WHERE IN PLACE ADD {$140.00} TO MY PRINCIPAL AND 20 MONTHS LATER FIND THAT THE TAXES FOR XX/XX/XXXX AND XX/XX/XXXX WHERE NOT PAID VERY CONVINIENT SINCE IN NEARLY 30 MONTHS I PAID OVER {$130.00} AND ONLY {$2800.00} GOING TO THE PRINCIPAL. Green Tree demanded payments before providing loss mitigation options, delayed decisions on short sales, and resorted to illegal practices to collect mortgage payments from consumers who fell behind on their loans, including false threats, repeated calls, and revealing debts to third parties, like employers. 

Green Tree 's failures as a mortgage servicer hurt homeowners. In many cases LIKE ME WHERE I AM ABOUT TO LOOSE MY HOUSE ONE MORE TIME. AFTER WORKING WITH THEM AND BEING DECEIVED LIE

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation