Consumer complaint received 2021-05-15
Company: SELECT PORTFOLIO SERVICING, INC.
State: IL
Product: Debt collection
Sub-product: Mortgage debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
My mortgage was transferred to Select Portfolio Servicing , Inc. ( SPS ) on XX/XX/XXXX from XXXX. At the time that it was transferred, my mortgage was approved for and protected by a Cares Act forbearance plan that was not due to end until XX/XX/XXXX. Before the transfer, I received a letter from XXXX stating that my mortgage was being transferred to SPS for servicing and that the Covid-19 protections ( forbearance plan ) that was in place would continue and be honored by SPS after the transfer. I also called XXXX after receiving the letter for further clarification because I did not understand why my loan was being transferred to SPS especially since I was in the middle of a forbearance plan but was assured that this was a normal process and that my loan would continue to be protected. 

The problem that I am having is that SPS refuses to honor the forbearance plan that my loan was under that was verified by XXXX as being a federally backed XXXX  XXXX  loan that qualified for the Cares Act forbearance program. Since they are not acknowledging the forbearance plan, they are showing my mortgage as delinquent and have been sending collection letters demanding a lump sum payment for the amount that was under forbearance and have sent statements showing that my mortgage payment will increase by $ 500 monthly. 

I have been calling and talking with representatives at SPS several times every month since XXXX of XXXX trying to get them to accept and honor the Cares Act forbearance plan that was approved and initiated by Chase that XXXX verified as being a Fannie Mae loan. 

There was never a time that XXXX or SPS was not able to contact me. I have voicemail if I was not able to answer if they called and I have been calling both XXXX and SPS several times a month trying to resolve this matter since XXXX of XXXX when my loan was transferred to SPS. 

A XXXX representative completed a three-way call with myself and SPS and verbally verified with SPS that my loan was a federally backed Fannie Mae loan that was approved for the Cares Act forbearance program before it was transferred to SPS and tried to get SPS to honor the remainder of the forbearance plan. 

The forbearance was due to end on XX/XX/XXXX but I have requested a three-month extension that individuals with federally backed loans are allowed due to SPS demanding a lump sum payment of over {$18.00}, XXXX before my mortgage can be reinstated and increasing my mortgage payment by $ 500 monthly. 

I will not be able to make the payment they are demanding and need my account to be adjusted to show that I do not owe a lump sum due to my loan being a federally backed loan and the amount that is due should be allowed to be deferred based on the guidelines for federally backed loans. Also, I should be allowed to resume my regular payment once the forbearance ends. 

I desperately need help with this matter because I have tried to end the forbearance plan, resume my regular mortgage payment and have the balance deferred as allowed by the provisions of the Cares Act but SPS is denying me this option.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation