DiTech currently offers many different types of fixed and adjustable rate mortgages, but it's not the best choice if you value strong customer service in a lender. Originally specializing in loans for manufactured homes, DiTech has a record of subpar loan servicing that comes through in both its history of legal penalties and individual consumer complaints.
- DiTech Review: Broad Range of Services but Poor Servicing
- How Do DiTech Mortgages Compare?
- Customer Service and Mortgage Servicing
- Mortgage Loan Products at DiTech
- Where Can You Get a Mortgage With DiTech?
DiTech Home Loan Review: Broad Range of Services but Poor Servicing
Most borrowers looking for a mortgage will find a suitable loan product at DiTech - their offerings and interest rates are about average. The company operates nationwide and provides standard interest rates on fixed rate loans as well as adjustable rate mortgages (ARMs). If you're considering a home purchase that's above the standard conforming loan limit of $424,100, DiTech also originates jumbo loans. For borrowers seeking a government-backed loan with lower down payment requirements, this lender is one of the many options for an FHA or VA loan.
Despite the diversity of DiTech's purchase and refinancing loan products, it's not nearly as effective when it comes to loan servicing. We found that the company had a poor record of consumer satisfaction, with a high rate of complaints lodged with the Consumer Financial Protection Board (CFPB) and low ratings from industry watchers like JD Power. Moreover, one of the companies that joined to form DiTech in 2015 settled allegations of abusive practices shortly before the merger, paying out $63 million to the CFPB.
How Do DiTech Mortgages Compare?
DiTech's mortgage rates are more or less the same as what you'll find at most other lenders. To verify this, we compared a set of 30-year fixed rate loans for a house bought with 22% down at a price of $216,000 —the assumptions DiTech uses for the rates displayed on its website.
30-Year Fixed Rate Mortgage Estimates at Major Banks
|DiTech||Chase||Bank of America||Wells Fargo|
Although home loan interest rates change on a daily basis, you can expect that most lenders such as DiTech will stay within a narrow band. Essentially, there isn't usually much opportunity to secure a mortgage rate that drastically beats the market. DiTech is no exception: we found that each of the company's rates on 30-year, 15-year and 5-year loans are perfectly average compared to the other options we considered in our review.
Unlike Wells Fargo or other large consumer banks, DiTech has a much lower profile in terms of physical branch locations. This makes it more difficult to access customer support if you prefer an in-person service experience, although DiTech has extensive resources available through its website and over the phone. Since DiTech appears to do most of its loan servicing in-house, we also thought it would be important to find out how the company performs after the origination process.
Customer Service and Mortgage Servicing
DiTech's biggest disadvantage as a mortgage provider is its weak performance in customer satisfaction. Both the frequency of complaints filed against DiTech and its low rating in customer surveys speak to the company's need for improvement in this area.
Mortgage-Related Complaints at Major Banks, 2013-2017
|Company||Mortgage Originations||CFPB Complaints||Ratio||2017 JD Power Rating|
|Bank of America||1,172,113||28,187||2.40%||767|
Our data included both the total number of mortgage loans originated since 2013 and the number of consumer complaints recorded by the CFPB in the same period. DiTech's loan services generated customer complaints twice as frequently as Bank of America, the worst performer among the big three US banks. This poor record appears to fall in line with JD Power's 2017 survey of consumer satisfaction in mortgage servicing. While DiTech performed among the top 3 in JD Power's survey on mortgage originations, it was near the bottom of major lenders when it came to loan services.
Essentially, the data we viewed suggest that while you may have a good experience when you apply for a mortgage with DiTech, your view may change once DiTech is managing your monthly payments. We also found that one of DiTech's predecessors paid a settlement of $63 million for abusive practices towards borrowers, shortly before it merged to form part of DiTech. The 2015 court ruling describes how Green Tree Lending required payments as a precondition to loan assistance, ignored modifications on loans received from other servicers, and harassed delinquent borrowers with excessive phone calls.
Mortgage Loan Products at DiTech
DiTech's home loans cover most of the popular options for purchase and refinancing, with standard interest rates in all areas. It doesn't offer construction loans, but that doesn't pose an issue unless you're planning on building your own house. In addition to the products listed below, DiTech participates in issuing mortgages designed for veterans through the VA loan program.
|Mortgage Product||Interest Rate||APR||Monthly P+I|
|30-year fixed rate||3.99%||4.04%||$803|
|15-year fixed rate||3.25%||3.37%||$1,184|
|FHA 30-year fixed||3.49%||3.55%||$756|
All of the interest rates posted on DiTech's website assume a purchase price of $216,000 and a loan-to-value ratio of 78%, which implies a down payment of 22% or $47,520. Alongside the assumed credit score of 740, these assumptions make for a very generous picture of the rate offers DiTech can provide. While all lenders pad their underlying assumptions to some extent, you should hold off on making any calculations for your own mortgage with DiTech until you obtain a quote or Loan Estimate from an actual loan officer.
Where Can You Get a Mortgage With DiTech?
DiTech is a licensed mortgage originator and servicer in all fifty states and the District of Columbia, and its focus on connecting with customers online makes it a viable option in any location. However, the company doesn't operate physical branches in every state, so you should expect to manage your mortgage application and payments at DiTech without the kind of in-person service you'd receive at a traditional bank.