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

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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 some pretty bad stuff
  • Including warning delinquent homeowners of imprisonment
  • And doing little to help borrowers keep their homes
  • Along with harassing phone calls and unresponsive customer service

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.

Must Convert Temporary Loan Mods into Permanent Ones

  • Assuming you managed to keep your home
  • Any temporary loan modifications must be made permanent
  • And all active foreclosures must be halted
  • While the company evaluates loss mitigation alternatives

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 loan 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, and in August 2015, Green Tree Servicing and Ditech Mortgage Corp. linked up to create Ditech Financial LLC, also owned by Walter.

53 thoughts on “Green Tree to Pay Borrowers $48 Million for Loan Servicing Abuses”

  1. 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. (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. 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.

  4. 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.

  5. 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 .

  6. 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…

  7. 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.

  8. 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.

  9. 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.

  10. 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. ..

  11. 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.

  12. 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”

  13. 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?

  14. Pissed off former employee

    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.

  15. 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.

  16. 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.

  17. 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

    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

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

    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.

  18. 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.

  19. 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.

  20. Are there a class action lawsuit against ditech with all the forgery and false information, I’m in South Carolina

  21. I was a victim of this as well from Green Tree, but I never received anything regarding this class action lawsuit.

  22. Nice article. Who, what when and where to I file a claim with the CFPB? I did send CFPB many documents pertaining to abuse by Green Tree. Nothing happened. Did GT pay off CFPB? All crooks.

  23. Who can I contact file a class action lawsuit against Green Tree, and Ditech? Green Tree caused me to have anxiety attacks and depression!! They harassed me so much while my husband was undergoing chemotherapy with Stage 4 Colon Cancer. Then my account was sold to Ditech that did a loan modification which have me owing an outrageous balance after being in our home for 11 years. My husband passed away in August 2018 and I’m burdened down with this horrible situation. They ruined my credit report for NO reason. Can someone please please please HELP me? I have reached out to several attorneys, but none can help with Mortgage claims.

  24. I am a victim of Green Tree and Ditech can anyone do anything about it. They have doubled my monthly mortgage beyond my ability to pay even if I way not a disable vet. ….help?

  25. Sounds like there needs to be a class action lawsuit. Anybody know of a good company to refinance with?

  26. chris theodore kanatas

    Both Greentree and Ditech are thugs. Ditech has sold my mortgage to Loancare another thug company with outrageous fees and terrible customer service, if that’s what you want to call it!? There needs to be a class action lawsuit against these arm twisting loan sharks!

  27. I Totally agree with you, Ditech is a dirty mortgage company and they need to take in consideration that this person is making money off of the people that is making purchases and they tell Constantly that they are going to foreclose on your home I believe the federal government needs to step in on them and make them pay everyone back the money that they have ripped off of people

  28. Toni M Foster/Mary P.

    I purchased a mobile home through Green tree which is now ditech , and the mobile home was $38,000 and my down payment I put down was $3,800 and I financed $26,200 from dad tack which was green tree and I have paid over $120,000 and they’re still saying I still owe over $4000 and I’m $4000 behind on payments and they are ripping me off big town on a $30,000 mobile home and I needed all accountable statements payments and they will not send them to me also they’re trying to say there was never any taxes paid on the mobile home and I have the proof and they’re also stating I had no homeowners insurance which I have proof this is a very dirty company and I do believe someone needs to look in to this they are ripping people off left and right

  29. I was harassed and have $837 plus in late fees due to their shenanigans plus no telling how much interest was addressed to my balance. I had to call them while working and my coworkers heard then yelling & threatening me if I was late. I would end up hanging up and they repeatedly called me plus after 9pm trying to harass me more. I too was with BOA and while my home was in remod with BOA they dropped me & sold my loan. Bank of America really cost me a lot of money for their role in this sale to an unscrupulous company.

  30. They did the same to me. I made every payment on time and they refused to pay me the thousand dollars I was entitled to each time I requested payment. I was never late during the five years

  31. I am a single parent I had a house fire it was total loss Green Tree kept calling about the insurance check when insurance paid I gave check to Green Tree which should have paid my house off instead I had to pay the remaining balance to them and me and my children had no place to live. A few years ago I received a letter stating that money I paid them was owed back to me and I never received it and I WANT MY MONEY BACK. Who do I contact to get whats owed to me?

  32. I have been a Victim of Greentree’s theft since January 2014 when I made a payment on my mortgage but it wasn’t applied to my loan. Then again on October 2016 another payment made but not applied. I have bank statements proving money was taken out and cashed to them and mortgage statements proving the money was never applied to my loan. I called numerous times with no help into correction and emailed them only to get an automated email response that they received my email. I have been terribly harassed and thousands of dollars in late fees and interest charges for the past 6 years only to get my loan transferred 2 other times to other loan companies without resolve. It always appears that I am behind in payments when I am really 2 months ahead. Can anyone please help me with whom I can contact??

  33. We were victims of Greentree. They were not interested in helping us modify our loan even though we qualified. I had one gentleman that called daily multiple times threatening me over and over. He would lie to my husband and ask why I wouldn’t speak to him. He even called my elderly parents and harassed them. After a few weeks they turned our account over to someone else and the same cycle. Once we would find someone to help us modify, they would move them to another account. It was just a cycle. To this day I can remember it like it was yesterday. The 7am phone calls, they keep threatening me and my family. The lies, over and over.

  34. The State of California received a notice from Ditech that I overpaid something and am due a refund, but Ditech no longer exists. Does anyone know who to call for me to claim my refund? Since Ditech filed bankruptcy, I wonder if my money even exists any longer. Thank you.

  35. Patricia Deadwyler

    Hey my name is Patricia I purchased a brand new mobile home from her in 1997 and they are telling me to this day I’m still paying on the interest it’s been 24 years Greentree got bought out so I’m still paying interest the trailer was only 40,000!! Can someone please help me!!!

  36. my payments are being sent back to me. I sent cerified letter to the address I’ve been sending my payment. Now, i can’t get in touch with anyone to get my balance?

    Please help! It should be paid off and i need the release of lien.

  37. Yes it happened to me, I bought a mobile home and Greentree was my lender for 240 months payments, I was behind one month, they call me and threaten me by making my credit bad, and take my home, so I did a direct deposit, for 20 years, total 240 months. Then they send me a statement that I still own them 20 thousand more. I got mad, I never refinance my mortgage. They did without letting me know, if I don’t pay, they take my home.

  38. We paid our home off but greentree said we owed another $17,000. Then they said it was for their insurance which we won in court that we carried our own insurance, then they auctioned our home off a paid off home we list our home and no one will get back with me on what to do it has been a little over 4 years now. Can someone give all of us a name of a law firm that will help us.

  39. Green Tree was so horrible they threatened me while in the hospital. Was two months behind. Had to go chapter 13 to stop all the harassing calls , one guy told me to pay up or get my out of my Mobile home☹️

  40. All the previous comments about them (green tree) are so accurate (ditech) as well the crazy hour calls, the threats of throwing me out of my house. While just being released from the hospital with diagnosis of stage 3 ovarian cancer, suffering from chemotherapy and not working not able to pay bills. The endless calls at all times of day and night being that sick, and I am making a long story very short. They were NASTY. Just plain NASTY!

  41. My name is Margaret Heath my home was stolen Jan 2012 by Greentree. How do I get answers on how to receive money back from my home. My house was bought in 2007 for $118,000 in Jan 2012 I owed $ 94,000. I paid extra on my home every month until I got hurt on the job. I was refused several times for a modification. They told me if I did not leave my home the Sheriff would B there to put my things out in the snow. Now they want over $9,000 from me for some reason. Pulse they put on my credit report that I was evicted. It has been hard to get a loan for anything else. I am now 72 years old and am forced to live in HUD housing. The most demeaning thing there is.

  42. Wow same crap happening to my dad’s mortgage. Financed through Greentree in 1995 then went to ditech then shellpoint aka new rez llc even more shady. They been foreclosing on and now says owe over 49 thousand dollars due to missed payments then stopped taking my payments and sent my money orders stamped on back to me but call daily demanding full payment but told me only contact their lawyer that we got charged with!

  43. I had a loan on a mobile home back in 2000 it was refinance later on but it is still listed with Greentree services listed on the title and I’m trying to sell it. I need someone to get in contact with me any time after 4 pm to see if you can help me get the title.

  44. Trying to get a lien release from green tree. Ditech. Shellpoint whatever the heck it’s called now has been a complete nightmare. All I ever get is the run around. Was or used there a class action lawsuit because I’d certainly be onboard.

  45. I paid my home off in December 2020. It’s showing on my credit report that I’m late , 60 days. I can’t get in touch with anyone to get it off. Anyone have a number I can call.

  46. Just paid off a home and was going to sell and it has a lien on it. I am pretty sure this will never get taken care of after reading all the comments. Who do we talk to about a lawsuit? Is there a phone number to call? And how does this company get away with this by changing their name constantly. If anyone remembers Jim Walter homes I am pretty sure if we dug far enough back all roads would lead back to them and their crooked business.

  47. Willie & Brenda Ruffin

    We have been a victim of Green Tree / Ditech / Shellpoint abuse and excessive charge of fees. Please put our name on a Class Action Suit.


    I was used and abused by greentree – ditech until January 30, 2018 when I refinanced and went with another provider all together! Prior to that, they would send papers saying I was approved for a loan mod, then they’d send papers saying I was denied and had X amount of days to get out of the house or I would come home to find my house locked up by the sheriff and I would never gain access, then they would try to short sale it. This went on for well over a year, all while they’d be calling and harassing me, names and bullying me to get out of my home. After a very long time, I did get approved for the loan mod, and still recvd papers saying I was kicked off – this too went on for a LONG TIME! All the while making my monthly mortgage payments I was wondering WHY my principal balance was not decreasing (4-year period), and the REASON WHY is because all but $100 was going to the INTEREST – WHAT THE HECK DID THEY DO WITH MY INTEREST (As it was a LOCKED rate) BUT apparently not under the LOAN MOD!! They never did give me the interest rate they charged my, so 4yrs basically paid towards interest and my taxes….all but a freaking 100bux… Please do contact me to see if I qualify for this class action suit! Thank you, Kim (ADD ME TO YOUR LIST)

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