Green Tree to Pay Borrowers $48 Million for Loan Servicing Abuses

April 21, 2015 21 Comments »
Green Tree to Pay Borrowers $48 Million for Loan Servicing Abuses

If Green Tree serviced your mortgage from 2010 to 2014, you might be due some compensation for alleged wrongdoings.

Today, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) ordered Green Tree Servicing to pay $48 million in borrower restitution along with a $15 million fine to the CFPB’s Civil Penalty Fund.

CFPB Director Richard Cordray said in a release that the company “failed consumers who were struggling by prioritizing collecting payments over helping homeowners.”

This meant borrowers who could have kept their homes instead lost them to foreclosure, despite being on payment plans to get back on track.

Pay Your Mortgage or We’ll Arrest You

Green Tree has been accused of a number of abuses, including not honoring loan modification programs, delaying short sale decisions, and charging customers “convenience fees” when paying their mortgages.

Apparently homeowners with prior foreclosure relief plans had their mortgages transferred to the company where they were not maintained, and instead asked that borrowers make their original, higher monthly payments.

Additionally, the company supposedly charged customers $12 for its pay-by-phone service and pressured borrowers into using it to ensure their payments were received on time.

Even worse, delinquent borrowers who called Green Tree were automatically routed to debt collectors rather than a loss mitigation specialist.

The company’s short sale department was also “frequently unreachable and unresponsive,” and it often took two to six months to receive a response to short sale requests.

If that’s not enough, Green Tree also allegedly called delinquent borrowers seven to 20 times a day if they were two weeks or more past due, sometimes as early as 5 A.M. or as late as 11 P.M.

Some reps told borrowers they were “deadbeats” and warned them that nonpayment of their mortgage could result in arrest or even imprisonment.

It’s unclear how much compensation each borrower will receive, but victims who receive money from this enforcement action can also pursue their own individual claims against the company.

For those who still have their homes, Green Tree must convert temporary loan mods into permanent ones.

And for mortgages already in a loan modification program, Green Tree must honor loss mitigation agreements entered into by the prior servicer

If a borrower is in the process of foreclosure, it must be halted while the company reaches out to borrowers and evaluates other potential loss mitigation options.

The company has also been ordered to halt all mortgage servicing violations, including how much consumers owe Green Tree. And acknowledge the receipt of short sale requests and/or missing documents within five days.

Green Tree is also barred from transferring loans in loss mitigation in or out of the company without all the proper paperwork and records in place.

Lastly, the company has been ordered to provide access to quality customer service so borrowers can actually save their homes from foreclosure instead of being pushed toward an arrangement that compensates Green Tree.

Walter Investment Management Corp. acquired Green Tree in 2011.

21 Comments

  1. Karyn McCrary May 28, 2015 at 10:59 am -

    This is horrible! I would hate to be the insurance company that underwrote the surety bond for Green Tree. I wonder if Green Tree will go out of business because of this.

  2. Larry July 22, 2015 at 3:10 am -

    (1) how much will the typical victim be paid? (2) how will we as victims be contacted about a $$ settlement? and (3) Will the victims be required to apply for a settlement?

  3. Colin Robertson July 22, 2015 at 10:53 pm -

    Larry,

    You might be able to get more info by calling 1-877-FTC-HELP (1-877-382-4357).

  4. Jean July 24, 2015 at 7:35 am -

    This is actually still happening. I called them just yesterday and was directed straight to their collections department instead of customer service. I asked for a payoff amount and they refused to give it. And yes, they do call several times a day.

  5. Susan Heern July 27, 2015 at 8:13 am -

    I’ve been trying to get a short sale with Greentree since May of 2014. I understand what the FTC and CFPB are talking about with this them. I submitted a complaint with the CFPB back in December about all of the issues I am having this this unethical company in an attempt to short sale my house. I’m to the point now where I am contacting my own attorney in order to resolve everything.

  6. Norma Anderson August 4, 2015 at 8:51 pm -

    Greentree has done everything than can think of to get my home. I had a modification done with Bank Of America. Then the next month BOA sold my loan to GreenTree. My payments went back up to what they were before the nodification. After several months I was told I wasnt making the right payment and I owed them almost $5000.00 And unless I paid this wthin 2 weeks They were forcloseing on my home, So I borrowred the money and paid them I dont have any idea how I am going to pay this back. I just cant imagine how the Goverment will let Greentree stay in business or how the people that work there look in the mirror knowing how many people they have hurt .

  7. savannah September 3, 2015 at 1:46 pm -

    norma, get an attorney and get one quick that specializes in dealing with mortgage law there are several that have won against Green Tree…they all know they are scum…

  8. franklin mills September 26, 2015 at 2:00 pm -

    I had a loan modification with bank of america,the loan were sold to greentree and they cancel the modification,now i have been out of the house for 5months,and they haven’t made a move to toward claiming or taken control of this property,wish is theirs.

  9. phyllis September 27, 2015 at 9:44 pm -

    In 2010, my morgage was sold from BofA to Greentree Servicing LLC. My credit score was above 780, with no late payments.
    GT was calling me day and night telling me I was short on my escrow account. After 2 years of accepting the calls. I quit answering the phone calls but saved all their numbers for later proof of their harassment.
    In 2012, I began paying my own taxes and insurance. Thinking that would eliminate the harassing calls. But, to no avail. My loan is FHA 7% 30 years, fixed rate, with PMI payments. I cannot get a bank to FHA streamline the $67, 000 mtg. I hired a lawyer in May this year. She is being bamboozled herself. GT uses unethical practices, and I keep making my payments on time but think about letting them have the 2nd home back because of the harassment.

  10. Ken November 27, 2015 at 6:58 pm -

    Greentree is Ditech so be careful! My HAMP loan was sold to Greentree which is now Ditech. I feel like they are trying not pay all or part of my $1000 per year for a total of $5000 for making all of my payments on time. They claim they did not receive my last payment when it was paid via my banks bill pay. I have confirmation numbers from my bank and I have never had a problem paying this way, even to them. They claim they have left messages and I never received any messages. They are saying it may have been lost in the mail but they refuse so far to make it right. I paid them immediately over the phone once aware and confirmed it was not cashed. It appears to me that they came up with this idea claiming not receiving it in the mail to not pay all or some. They first claimed they were not aware of this on time payment incentive from my original banks docs. Any normal good company with a major bank documentation would understand or have a solution. Filed complaints today with FTC, CFPB and the my State.

  11. Tina Marie December 7, 2015 at 12:54 am -

    In 2013 we fell on hard times. We were forced into renting our condo due to housing collapse that prevented us from selling it. We were taking $10,000 a year in losses and there was no end in sight. We tried to short sale but after 50 days on the market Greentree offered to do a Deed in lieu based on the second mortgage releasing the lien for 10% settlement. I did not know at that time that these 80/20 Countrywide loans that went to Bank of America then Greentree and Nationstar that are sister companies were playing me the whole time. Both encouragedays us to be 90 days delinquent. .WHY? Because insurance paid off the loans in full on the 91st day..They stalled, blaming one another and Nationstar also blamed Bank of New York for delay..Bank of new york put in writing to me that the were only trustee and had no say so in Settlements, Deed in lieu’s or modifications. .Greentree denied us the Deed in lieu but offered a Hamp..There exact words were, ” Bank of America is offering you a Hamp. .We never recieved a Hamp..They did the old bait and switch on us..We ended up with a streamline modification with $23,000 tacked onto a 40 yr loan..What a joke! Yet my accounting paperwork they sent says HMP mid-capitalized..My note has no bank endorsements, my assignment is missing my name and has stamped robo signed for Mers supposed employee and notary which is not legal..Notary’s have to have original signatures. ..There is so much fraud involved and I keep finding more everyday..Just waiting to figure out what road I’m going to take as far as legal action. ..

  12. Don May 23, 2016 at 5:08 pm -

    I have a mortgage with Ditech (prev Greentree). I have been making excess (extra on principal) payments for quite a while. Normally I just pay my bills without looking at where the money goes. Yeah, I almost deserve this. Sigh.
    Statement shows a breakdown of current payment due in terms of principal and interest. I exceed the payment due by almost $150, figuring that 150 will come off principal directly. But next month’s statement shows only the principal stated as due being payed, with the excess going toward interest. The opposite of how it should work. I have no escrow. Will be contacting legal specializing in mortgages tomorrow.
    I did call Ditech. The rep became short with me. Said she could only change excess payments for past 3 months. Told her I would be contacting attorney. Wish me luck.

  13. Ken September 11, 2016 at 7:41 am -

    I received my first notice from Ditech that my mortgage was in arrears..after speaking with several CSD representatives.. They could not find where I owed the money.. I was sent partial history of account.. I faxed all information to them, that was available to me.. Needless to say it has been a fiasco.. Now the are threatening default on loan.. It’s ridiculous to try and deal with this company.. Told different amounts even one rep stated it would be “forgiven”..I have no idea of what else to do..this is just another proof of the “fleecing of America”

  14. Lynn Stewart September 13, 2016 at 4:05 pm -

    I want to fill out a class action settlement form where do I get one for greentree

  15. timber tuckness October 4, 2016 at 11:48 am -

    I did file with CFPB and the FTC and I got a check for $10.00 after I lost my house I am still setting in my driveway living in my RV. I would like to have my house back. I was forclosed on just before the lawsuit was awarded and Ditect are still sending me statements to pay morgage payments? what do I do now?

  16. Pissed off former employee December 7, 2016 at 12:34 am -

    How will former employees be compensated for their income lowering and workload doubling? They were scamming the homeowner and the workers. How does a former employee get compensated?

    Ops manager used to try to say no one uses restroom first 3 hours of shift. I pissed when I want as no man woman or child will ever decide when I piss but that is inhumane.

  17. Susan February 2, 2017 at 1:31 pm -

    I just found this article and learned that I may be able to recoup the convenience service fees of $12 I paid multiple times to Green Tree. Is it still possible to be compensated? To whom do I make my complaint?

    Thank you.

  18. Linda Littlejohn March 10, 2017 at 1:27 am -

    Susan, If u would look at the back of your billing statements, it will tell you where to file your complaint. File it with the cfpb and ftc. This company or like vultures and dont care whom they may devour. They have been sued and need to be sued again. I am a victum of this bad service and been robbed right out of my bank account and experienced more illegal acts up until this day. I.say file, file and get an attorney.

  19. cherane Pefley March 31, 2017 at 7:39 am -

    Three years ago THE COURT RULED IN MY FAVOR against Green tree foreclosure with a FINAL JUDGEMENT WITH MERIT. I’ve had four different Judges to rule in my favor.

    On the web site you can read

    ORDER:
    Sever the trial to foreclosure non jury trial and counter claim, jury trial.

    I won foreclosure trial by non jury trial
    final judgement
    amended final judgement

    ORDER:
    Foreclosure resolved, only issue is money damages and demand for jury trial

    ORDER:
    Granted motion leave to file my counter claim

    Nine years this has been going on for me ………..suffering years even though I won three years ago still waiting for my damages.

  20. Megan May 1, 2017 at 6:18 am -

    Hi my name is Megan & I’m in a bad way with this company fixing to loose my home of 15 years that is suppose to already be paid off have no way to financially fight them cuz everything has went into trying to keep my home. I was wondering how your situation turned out so good for you in court? If you don’t mind please contact me at 409-277-0420 I’m in serious need of advice.

  21. Phylliisgrisby September 16, 2017 at 3:17 am -

    I was with Bank America and they turn me over to ripped off GreenTree Mortgage, and they GreenTree, up my loan to what they want, I called them and told me that they couldn’t reach me, They up my APR and Loan Mortgage and said the could not get in touch with me. Now Ditech I’d with them and are ripping me off and other folks, My home is 42yrs old, from 726 a month to 798. And will not tell me nothing, except, paid your payment, my lawyer told me I don’t miss payments. My late husband put me in this bind, I’m sorry Lynn for long text. It makes me so D MAD. And doing something about it, cause Lynn I’m that ((((B)))). Be safe Family n friends.

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