Consumer complaint received 2023-08-23
Company: SELECT PORTFOLIO SERVICING, INC.
State: NV
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
The beginning of XX/XX/XXXX I contacted SPS regarding the cancellation of my PMI ( {$290.00} ). On XX/XX/XXXX I was sent paperwork from SPS regarding the process. I was to complete a form and provide a cashiers check or money order for either {$450.00} for an appraisal or {$120.00} for a BPO of my property so that current value could be assessed. 

On XX/XX/XXXX I obtained a cashiers check in the amount of {$120.00} ( check # XXXX ) for a BPO. This check and the required form were mailed ( on XX/XX/XXXX ) to SPS at the address they provided : Select Portfolio Servicing, ATTN Private Mortgage Insurance Department, XXXX XXXX XXXX, XXXX XXXX XXXX UT XXXX On XX/XX/XXXX I reviewed my account online and saw that there is a section titled escrow-insurance that stated my LTV on my home was 52 %. I contacted SPS for an update on my request to cancel the PMI and I was told that they had not yet received my check or form. I found this odd since the last 2 mortgage payments I made were made by check and they were sent and received within 5 days. However I decided to give it a few more days. While on the phone with the SPS agent I asked how they determined my LTV at 52 %. The agent informed me that SPS had conducted a BPO on my home in XXXX of XXXX. The current value of my home was estimated at {$580.00}, XXXX at that time. I explained that clearly the LTV guidelines for canceling the PMI had been met by their own records. On this day I had also faxed and emailed SPS a copy of the form that they needed in order to proceed with the PMI cancellation. This form was emailed to XXXX and faxed to XXXX. It was emailed and faxed twice. 

On XX/XX/XXXX I called SPS again to see if they had received the cashiers check and was told they had not. I made the decision at that time to contact my financial institution and place a stop payment on the cashiers check. It seemed that the check had been either lost or just misplaced by SPS and also SPS had already done a BPO on my home in XXXX. According to the XXXX  XXXX  website, a BPO  is good for 120 days. It has not been 120 days therefore the BPO that was ordered and completed by SPS is still valid and should be used in the consideration for removal of the PMI. 
On XX/XX/XXXX I received a call from SPS indicating that my request to cancel the PMI had been closed due to insufficient information. I explained that they should have received the form they required and that they have the BPO on file and there was no reason to close out my request. I was then able to speak with a supervisor who assured me that the request was still open and being processed. 
I called SPS again on XX/XX/XXXX for an update and was told that they had reached a decision and the request was closed. I waited for a letter regarding their decision and did not receive anything. Therefore I contacted SPS again this morning ( XX/XX/XXXX ) and was told that my request to cancel the PMI had been closed as they have not received the required information. That I have not sent them the funds for a BPO or appraisal and again I argued that there was no reason to send {$120.00} for a BPO since one was already done by SPS in XXXX and is still valid. 
According to SPS own records the current LTV on my home is 52.4 % which is far below the required 78 % LTV for PMI removal consideration. 
Our payments are current and up to date with no late payments on record. Despite SPS stating that in order to meet their payment history for PMI cancellation your mortgage account must not have had any payments sixty ( 60 ) or more days past due within two years AND no payments thirty ( 30 ) or more days past due within one year of the later which contradicts the Homeowners Protection Act of 1998 which states that good payment history is defined as not made a payment that was sixty days or more past due within the first twelve months of the last two years prior to the cancellation date OR has not made a payment that was thirty days or more past due within twelve months of the cancellation date. 

I am writing you as I feel that yet again SPS is doing everything in their power to prevent me, the consumer, from having the PMI from my mortgage account cancelled. My account meets all the necessary criteria for PMI removal however SPS wants to find every reason or excuse they can to prevent me from having the PMI removed. There is absolutely no credible or logical reason as to why I would need to send SPS a cashiers check for {$120.00} for a BPO that they themselves conducted in XXXX. This BPO is still valid and accessible to SPS. I am requesting your assistance to rectify this situation. 
I have provided the following information for your review : 1. The original letter and form sent to me by SPS on XX/XX/XXXX indicating the steps needed to take in order to initiate the PMI removal process ( 3 pages ) 2. A screenshot from my online account with SPS which is dated today, XX/XX/XXXX. This shows that SPS has my current LTV at 52.54 %, which again, is far below the required 78 % LTV for PMI removal.

3. The form needed by SPS to show that I am requesting the removal of my PMI and that I believe I meet the current LTV requirements. Also provided are the 2 fax confirmations that the form was sent to SPS 4. Receipt that I stopped payment on the cashiers check that I had originally sent on XX/XX/XXXX to SPS to pay for the BPO. That again, this was stopped due to concern that it was possibly lost or misplaced and also stopped after the fact that I found out SPS had already conducted a BPO. 
5. Evidence that per the XXXX XXXX website, a BPO or appraisal value is valid for 120 days from the date the initial valuation product is delivered to the servicing management default underwriter 6. A screenshot from my XXXX credit report showing that my payment status with SPS is open/never late. That this is based on a 24 month payment history 7. A section of the HPA of 1998 that defines good payment history.

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