Complaint Review: Ditech Servicing - Rapid City South Dakota

Ditech servicing LLC has made continuous errors on my account for over one year.

• I refinanced with Ditech for a HARP Loan in or around March 2016. (They were already the current servicer of my previous loan)  
• I have been providing them partial payments of $500 for over 9 months every 2 weeks from June 2016 to May 2017 (partial payments was a normal practice I adhered to on my previous loan)
• My current mortgage due monthly is $881.57
• Ditech has been funneling bi-weekly payments into an account called unapplied funds account. (Their policy is that partial payments are sent to this account until the full payment is received and then is to be applied)
• They have not been adhering to their own policy and have accrued funds in their unapplied funds never applying to payments causing late fees.
• From July 2016 – March 2017, I called and spoke to representatives, supervisors, and directors and was told that the continued error that were made would be fixed.
• In February 2017, my accountant and I noted discrepancies on an issued 1098 from Ditech and it prompted an inquiry and a further review revealed additional errors being applied to my account.
• In March 2017, a director Andrea Lutz and a loan specialist explained to me that Ditech has no way to recognize partial payment or overpayments and it was contributed to an upgrade in their system. A reallocation of funds was conducted to apply for payments correctly from the last 9 months.
• After the reallocation was completed, I was informed that my loan was paid up 1 month in advance.
• After the reallocation was applied, I noticed my principal balance increasing.
• The reallocation applied caused my account to go in default, caused additional late fees to accrue and again I was never made aware of.
• I was sent four collection letters and a representative came to my home.
• In May 2017, I received a notice stating my escrow was short and my monthly payments would increase.
• Ditech alleged my property taxes had increased. However, the city treasurer refuted that claim when provided in writing that my taxes had remained the same.
•  Ditech’s AVP alleged Ditech received my storm water bill from the city and would take over paying that. I have been paying my storm water bill on my own through web bill pay and was current on my bill.
• Another escrow analysis was completed on 7/6/17 and I was sent a notice stating I was in surplus of $386.71 and my monthly payments would be decreasing
• Another analysis was completed on 7/7/17 and I was sent a notice stating I’m in a shortage for $245.45 and my monthly payments would be increasing
• They have contacted my property insurance company and requested the name of the mortgagee be changes to several names, one of which is listed as “associated affiliates”. They have ignored all requests for all the name of associated affiliates

They have disabled my capability to obtain my pay off quote, they refuse to respond to my inquiries of the reallocation completed in March being incorrectly applied. They continue to hold my payments in their applied funds when the exact dollar amount is now being provided. I have a library of recorded calls with the organization of over 150 calls made to them regarding multiple errors. One of which when two employees specifically convey to me this is an ongoing practice of the organization (mishandling funds). I announce on my recordings that all calls are recorded.