Complaint Review: DiTech.com - Internet

This comment is directed at John in Atlanta, GA. The GMAC company is a very large company. Ditech.com is a divison of GMAC. There have been questionable things that have occurred there from reading all the stories. I will respond to a few items: Not all loan officers are losers, lack education and the other conotations you infer. The real estate business, like many others, does attract all sorts of people. I am educated and have a college degree. I am licensed by the Department of Real Estate. I have been licensed in most states throughout the US. I have closed loans in many capacities for 25 yrs. I own property. I have worked for Brokers, Bankers, Direct Lenders, and Builder Lenders. They are no different; trust me. Most of my friends, in the business, have had at least 10-15 yrs in the industry as well. They all hold a license, they have college education, they own homes themselves. The APR was set up in 1968 with the Federal Truth In Lending Act. It became even more required in 1980 as the Savings and Loans were having their melt down. The "Lock In Fee" is a relatively new charge that banks have added as they do much work and then customer cancels. There are no up front fees required for appraisal and credit however. So most companies will either collect a check up front to cover that of the appraisal and credit. Or possibly the credit with the appraisal to be on COD (if a refinance or home equity). If it were a purchase, there would be a demand put into escrow for the necessary funds to cover those items. The fee primarily is a good faith deposit that you are going to act in a timely manner and in return the bank will hold your rate and act in a timely manner as well. As far as Bait and Switch tactics. I cant speak of this as it is not something that I do or ever saw happen. I will however tell you that it seems very common place these days and Im quite sure with the meltdown the industry is seeing, you and other people will see alot more of it! Shame on them. So customer BEWARE! Check the Dept of Real Estate Question your loan officer Ask the most important questions Liars have holes in their stories, so ask the question more than 1 time. Check the Better Business Bureau Go to the office if its possible - meet face to face if possible. If you are dealing with someone with 5 yrs experience, that may not be enough. If you are dealing with someone with 10; you are probably in better hands...if they are honest and have the credentials to prove it! If they are drop outs, alcholics, drug addicts, they cannot hold a license. This is why I stress this most! Do you want to deal with the Wheeler Dealer or the Mortgage Nerd? If it sounds too good to be true it probably is and I bet you are dealing with Wheeler Dealer...meanwhile Mortgage Nerd didnt get the loan. Then people come here and complain...Go Figure! PEOPLE BE AWARE and WAKE UP!!!

Someone commented that GM is a big company and thus can absorb TV commericals and the like. GM is losing money every day, know anyone in Michigan. Ask how the plants are doing, that is why they do shady things with GMAC and have super high interest rates, it is to offset the pensions that are bankrupting the company. Why would any company charge $500 upfront for the loan? This makes no sense, I work for a Direct Lender (not a broker). We do ask that the customer pay for the appraisal but we also tell them that unlike most, we will release it to anyone they wish. They did pay for it. By being honest from the get go we build customer loyalty and get tons of referrals. Thats why we do not need to advertise on TV or Radio. Bait and Switch is the most disloyal tactic ever. Sometimes, unforseen things do change the terms of a loan. If the customer tells us the home is worth 300, and the appraisal is for 250 that will change the loan. Of course, we do not always take the customers word and try to establsih value before hand so we do not waste our time or the customers $300. But to tell a customer they are getting a 30 year fixed at 6.5 and then it is an ARM is just bad. Anyone who does this will get what is coming to them. To all consumers, ASK FOR A GOOD FAITH. If things like ORIGINATION, BROKER FEE, DISCOUNT are blank, ask the Loan officer about it. If he says it will be zero ask him to sign his name to those spots. If it is really zero, he will sign. If they are planning to bait and switch, he will not.

Someone commented that GM is a big company and thus can absorb TV commericals and the like. GM is losing money every day, know anyone in Michigan. Ask how the plants are doing, that is why they do shady things with GMAC and have super high interest rates, it is to offset the pensions that are bankrupting the company. Why would any company charge $500 upfront for the loan? This makes no sense, I work for a Direct Lender (not a broker). We do ask that the customer pay for the appraisal but we also tell them that unlike most, we will release it to anyone they wish. They did pay for it. By being honest from the get go we build customer loyalty and get tons of referrals. Thats why we do not need to advertise on TV or Radio. Bait and Switch is the most disloyal tactic ever. Sometimes, unforseen things do change the terms of a loan. If the customer tells us the home is worth 300, and the appraisal is for 250 that will change the loan. Of course, we do not always take the customers word and try to establsih value before hand so we do not waste our time or the customers $300. But to tell a customer they are getting a 30 year fixed at 6.5 and then it is an ARM is just bad. Anyone who does this will get what is coming to them. To all consumers, ASK FOR A GOOD FAITH. If things like ORIGINATION, BROKER FEE, DISCOUNT are blank, ask the Loan officer about it. If he says it will be zero ask him to sign his name to those spots. If it is really zero, he will sign. If they are planning to bait and switch, he will not.

Someone commented that GM is a big company and thus can absorb TV commericals and the like. GM is losing money every day, know anyone in Michigan. Ask how the plants are doing, that is why they do shady things with GMAC and have super high interest rates, it is to offset the pensions that are bankrupting the company. Why would any company charge $500 upfront for the loan? This makes no sense, I work for a Direct Lender (not a broker). We do ask that the customer pay for the appraisal but we also tell them that unlike most, we will release it to anyone they wish. They did pay for it. By being honest from the get go we build customer loyalty and get tons of referrals. Thats why we do not need to advertise on TV or Radio. Bait and Switch is the most disloyal tactic ever. Sometimes, unforseen things do change the terms of a loan. If the customer tells us the home is worth 300, and the appraisal is for 250 that will change the loan. Of course, we do not always take the customers word and try to establsih value before hand so we do not waste our time or the customers $300. But to tell a customer they are getting a 30 year fixed at 6.5 and then it is an ARM is just bad. Anyone who does this will get what is coming to them. To all consumers, ASK FOR A GOOD FAITH. If things like ORIGINATION, BROKER FEE, DISCOUNT are blank, ask the Loan officer about it. If he says it will be zero ask him to sign his name to those spots. If it is really zero, he will sign. If they are planning to bait and switch, he will not.

Someone commented that GM is a big company and thus can absorb TV commericals and the like. GM is losing money every day, know anyone in Michigan. Ask how the plants are doing, that is why they do shady things with GMAC and have super high interest rates, it is to offset the pensions that are bankrupting the company. Why would any company charge $500 upfront for the loan? This makes no sense, I work for a Direct Lender (not a broker). We do ask that the customer pay for the appraisal but we also tell them that unlike most, we will release it to anyone they wish. They did pay for it. By being honest from the get go we build customer loyalty and get tons of referrals. Thats why we do not need to advertise on TV or Radio. Bait and Switch is the most disloyal tactic ever. Sometimes, unforseen things do change the terms of a loan. If the customer tells us the home is worth 300, and the appraisal is for 250 that will change the loan. Of course, we do not always take the customers word and try to establsih value before hand so we do not waste our time or the customers $300. But to tell a customer they are getting a 30 year fixed at 6.5 and then it is an ARM is just bad. Anyone who does this will get what is coming to them. To all consumers, ASK FOR A GOOD FAITH. If things like ORIGINATION, BROKER FEE, DISCOUNT are blank, ask the Loan officer about it. If he says it will be zero ask him to sign his name to those spots. If it is really zero, he will sign. If they are planning to bait and switch, he will not.

To: Pete - Pomona, California WOW - you have no clue. Obviously you work for DiTech.com. As a typical untrained high school drop-out telemarketer (oops, I mean Loan Officer), you should try working for a real mortgage company before defending Ditech.com. They are a classic bait-n-switch company. The fact that they are owned by GMAC has nothing to do with anything. 1) REAL lenders don't charge a rate lock fee, real lenders deliver what they promise, real lenders close on time, real lenders don't break rate locks, real lenders have knowlege, trust, honest, and integrity. Real lenders don't steal $500 from unsupecting clients by over promising, then not closing the loan! 2) APR is set by the government and is supposed to be calculated EXACTLY the same way by ALL lenders as a means to PROTECT consumers, and give them a way to compare lenders. 3) DiTech makes you THINK they are a big shot lender with WalMart pricing, but are really just a low life scum bag with bait-n-switch practices. 4) TV advertising costs a fortune. Their corporate budget to pay for this - as you say "enough for you and me to spend over a billion life times" doesn't grow on trees. Where do you think it comes from? It comes from their consumers! You are right, I don't pay thousands of dollars for my NIKE shoes, but I do pay significantly more than another quality shoe BECAUSE they have to make enough EXTRA PER SHOE to over pay the althlete to advertise their shoe. So, how do they make all the money to advertise all day? The customers. How do they get all the customers? They bait-n-switch them! 5) Once your rate is locked, this is a contract? YA, if you qualify for the loan listed on the rate lock contract! Read the rate lock sheet once! This is another problem with DiTech.com, the untrained high school drop-out telemarketer (oops, I mean Loan Officer) quotes rates and costs based on their 5 minutes worth of loan officer training. They have no clue as to what they are doing! It is a complete injustice to real loan officers everywhere to call their glorified telemarketers loan officers!

What is your credit score? - This would affect your interest rate. Do you have any judgement or unpaid debt? - You have to pay for them to get a loan approved. >> a $500 NON-REFUNDABLE fee. Their loan officers don't have a clue, don't return phone calls, and promise the world! - The 500 dollar is charged if you only decline the loan. It is money down to lock a rate. I apologize if you feel you did not get the service you deserved. I am did not take your call, nor am I speaking on behalf of Ditech. I can not be sure what happened. >> If you don't understand APR, you better learn FAST before you deal with their bait-n-switch rates. - APY is calcuated differently from company to company, but it is a standard set by the federal government for comparison. - At Ditect, there is no middle man (brokers), you get the best rate and less fees. As for your Bait n Switch, Ditech is a BIG company. They do things in terms of bulk, think of Ditech as a Costco or Walmart, they can offer services at a lower cost to the consumer. >> Their rates are NOT better then everyone else. It comes loaded with fees and points you do not want to pay. - You are stating an opinion. - Fees, of course there are fees. When you go to get an oil change. You pay for a air filter, you pay for the oil, you pay for the service. You get what you pay for. You don't want to pay? just pay for the oil and the service charge. Or simply change it yourself. >> If they are on all TV channels in all markets all day long, who do you think ends up paying for all those expensive commercials. THE CUSTOMERS! How do they get all the customers? They BAIT-N-SWITCH. GM is one of the largest automobile corporation with a budget enough for you and me to spend over a billion life times. Big companies eliminate costs such as middleman like brokers and deal directly with the customers. Big companies like Coke and Pepsi spent millions on commericals. Nike paid alethetics millions to appear on their commercials. If you want a nice pair of ball shoes, you pay from 50 to 200 dollars. You are not paying thousands of dollars are you for a shoe to cover Nike's contract with superstars? >> They turned me down because I had one late Mortgage payment 10 months ago back in Nov 03. I suspect they are delaying this request also until interest rates rise. I can see no other reason. My credit is very good and better than most. - What is your credit score? I don't think you get turned down for a single late payment. Once a rate is locked, that is the contract. If you take the loan, the locked rate is what you get regardless. As for your suspicion, true - current indicators suggest that interest rates will be on the rise with Greenspan raising the interest rate. What if it economic trends forced him to drop it? What if Bush gets re-elected and we go to war with Korea?

If you are looking for a HELOC (home equity line of credit) 1 single 30 day late is all it would take to have you denied. Most companies refuse anyone with a single 30 day late within the past 24 months.....So if this loan officer is telling you to wait 2 more months then they have a very good program for HELOC's this means that they have found an investor who will accept lates within 12 months instead of the standard 24 months. These mortgage companies make no extra money on a loan when the rates rise....it just gets harder for them to bring in business. Keep in mind when shopping mortgages that the rates advertised are always going to be the lowest possible for those with PRIMO credit, having ANY lates on your mortgage is the kiss of death with ALL mort companies. A late Mort payment is a sign of risk for any investor that the mort company has to sell the loan to.....no matter how high your credit scor is....I am a loan officer for another company (not Di-tech) but I see many complaints on this site(many of which are valid and hold weight) but many that should be blamed on the sec 32 laws for each state as well as the BIG banks and servicing companies that buy these loans.

I recently applied for a small equity loan with Ditech, or better know as Ditech.com . They turned me down because I had one late Mortgage payment 10 months ago back in Nov 03. This was due to some unforeseen circumstances that were out of my control. This was the only thing on my credit history. I sent them documentation indicating why this occurred and showed proof everything was resolved. They declined me anyway and told me to re-apply in two months. I suspect they are delaying this request also until interest rates rise. I can see no other reason. My credit is very good and better than most. I wonder what their real business is.