Consumer complaint received 2023-11-01
Company: Specialized Loan Servicing Holdings LLC
State: MD
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage
Sub-issue: Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure

Complaint:
Specialized Loan Servicing LLC XXXX XXXX XXXX XXXX, CO XXXX Attention : Home Retention Department Subject : A XXXX XXXX XXXX Request Dear SLS Mortgage, I am writing to bring to your attention a matter of great concern regarding predatory practices and the loan modification response regarding XXXX XXXX that I have experienced with your company. I believe these practices are in violation of both federal and Maryland state laws, and I kindly request that you address this issue promptly. 

To provide you with a clear understanding of the circumstances leading to my complaint, I entered a program with XXXX XXXX  on XX/XX/XXXX, for financial assistance on the second mortgage XXXX into a down payment with a new modification with your company. 

XXXX XXXX contacted SLS mortgage numerous times and consistently it took months to respond back to XXXX XXXX. From XX/XX/XXXX to on XX/XX/XXXX, was the official date of finally receiving a loan modification package for loan XXXX at the current interest rate with a large balloon payment included. 

However, upon closer examination of the loan terms and conditions, I have, and the State of XXXX discovered several alarming practices that are indicative of predatory lending. A large balloon payment of over $ XXXX plus violated the terms of the XXXX XXXX program for final approval. 

Due to the overextended delay the funds are now depleted from XXXX XXXX program. Almost twelve months have passed by, and now real modification assistance has been provided. 

I have made it clear that I want to keep my home that my family and I live in now. This debt was discharged in my bankruptcy ; however, the XXXX is still in place and your company is doing predatory business on the collection practices. 

Under federal law, specifically the Truth in Lending Act ( TILA ), lenders are required to provide borrowers with clear and accurate information about the terms and costs of the loan. This includes disclosing the annual percentage rate ( APR ), finance charges, and any prepayment penalties. 

Unfortunately, the loan agreement I received from your company failed to provide transparent and comprehensive information, making it difficult for me to fully understand the financial implications of the loan. A large balloon payment with a down payment of $ XXXX is not possible for me to pay out of pocket. 

We would have to salvage our car, clothes, shoes, and food to come up with this sum of money. Now, that XXXX XXXX  has said, No as well to the balloon payment and your companys delayed response. I am seeking another loan modification request that is fair to me as the consumer without a down payment and no balloon. Without this assistance I will need to file another bankruptcy within the next few weeks. I will have no other option ; we can not be homeless. 

Furthermore, XXXX state law, specifically the XXXX XXXX XXXX XXXX ( XXXX ), prohibits predatory lending practices such as excessive interest rates, unfair loan terms, and deceptive practices. Upon reviewing the loan agreement, I have identified several violations of these state laws, including : No options within the loan modification that will lower the principal balance due to bankruptcy. 


The possibility to get a modification to lower your interest rate and affordable payment. 

No military option offered. 

It is important to note that predatory lending practices not only harm individual borrowers but also have a detrimental impact on our society. These practices disproportionately affect vulnerable populations, leading to financial instability and a cycle of debt that is difficult to escape. 

No balloon ; without a down payment. 

Considering the aforementioned concerns, I kindly request that you take the following actions : XXXX. Conduct a thorough investigation into my specific loan agreement and address any violations of federal and XXXX state laws related to predatory lending. 

XXXX. Provide me with a detailed and revised loan modification that is affordable. I am already having financial difficultly. 

XXXX. Rectify any violations found and offer appropriate remedies, such as adjusting the interest rate, waiving fees, or modifying the loan terms to comply with applicable laws. 

XXXX. Implement measures to ensure that your company adheres to federal and Maryland state laws related to predatory lending practices in all future loan agreements. 

XXXX. Adhere to the XXXX state program timeline of responding to their request. To ignore their request and stretch out the deadlines was unfair treatment from your financial institution. 

I would like to request a prompt response to this complaint within the next few weeks and not months from the date of this letter. 

If I do not receive a satisfactory resolution, I will be compelled to escalate this matter by filing complaints with the appropriate regulatory authorities and seeking legal recourse to protect my rights as a borrower. 

I trust that you will take this complaint seriously and take immediate action to rectify the situation. I believe in your commitment to ethical business practices and hope that we can resolve this matter amicably. 

I am seeking a justification and solution to your company causing me to not receive XXXX XXXX funds. This is an unfortunate situation and again unfair practice. 

Thank you for your attention to this matter. I look forward to your prompt response. 

Sincerely, XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation