Consumer complaint received 2023-12-15
Company: Specialized Loan Servicing Holdings LLC
State: CA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage
Sub-issue: Foreclosure

Complaint:
Despite numerous requests made by myself, SLS has displayed a consistent lack of effort and care in furnishing the requested paperwork and addressing its violations to my Home Equity Credit Line Agreement ( HELOC ), as required under RESPA law and policy. 

Regrettably, my previous efforts to address this matter through communication channels have proven unfruitful, as the requested documentation, crucial to my home, remains outstanding. This non-compliance with my legitimate and repeated requests has created an unwarranted obstacle, thereby hindering SLS ' responsibility to work on this situation. 

Moreover, the lack of appropriate attention to my concerns in regards to RESPA law and consumer policy demonstrates a disregard for the conduct and obligations that come with engaging in consumer relations and responsibilities. 

In light of these circumstances, I am formally requesting immediate attention to this matter. I urge SLS to promptly provide the outstanding documentation as previously requested, and is required under RESPA, and take necessary steps to rectify the oversight in addressing my complaint. 

Enclosed herewith are pertinent documents delineating the array of violations committed by SLS concerning my Home Equity Credit Line Agreement ( HELOC ). 

Over an extensive period spanning approximately a decade, SLS remained dormant in correspondence with the absence of equity in my property. Nevertheless, the company has recently resorted to threatening foreclosure, deeming the situation a " zombie mortgage. '' This course of action not only mirrors my personal circumstance, but also resonates with cases extensively publicized in the media and documented within the Consumer Financial Protection Bureau 's ( CFPB ) Consent Order, Settlement, and Guidance materials, all of which are attached herewith alongside this formal complaint. 

The aforementioned CFPB guidance explicitly addresses the illicit tactics akin to those employed by SLS. It underscores, " Now, over a decade later, and often without any intervening communication with homeowners who were able to save their homes, some of these debt collectors are demanding the mortgage balance, interest, and fees, and threatening foreclosures on families who do not or can not pay '' ( CFPB- see attached ). 

The strategies employed by SLS in my case starkly echo this narrative. It is imperative to highlight that " debt collectors engaging in the pursuit of recovering on these 'zombie second mortgages ' may be in direct violation of the Fair Debt Collection Practices Act '' ( CFPB- see attached ). 

Throughout the prolonged period when my property lacked equity, SLS failed to provide regular statements or updated balance information regarding my mortgage account during this time, of nearly 10 years, explicitly violating Section 4.b. of my HELOC agreement ( attached herewith ). However, upon the accumulation of equity in my property, SLS abruptly initiated foreclosure proceedings, setting the foreclosure date for XX/XX/XXXX. 

The recurrent patterns in SLS 's conduct unequivocally indicate predatory and deceptive business practices, overtly disregarding established laws and regulations, as corroborated by the CFPB 's Consent Order, Settlement, and Guidance documents. 

Notably, the 2020 Consent Order issued by the CFPB against SLS serves as a vivid demonstration of the company 's transgressions under the Real Estate Settlement Procedures Act ( RESPA ), its Regulation X, and the Consumer Financial Protection Act of 2010 ( CFPA ). The findings of this order resonate with the circumstances of my case, citing SLS 's unlawful foreclosure actions against borrowers entitled to protection from such measures and their failure to timely deliver evaluation notices, in direct violation of Regulation X. 

Moreover, the CFPB 's Consent Order stipulated that SLS pursued foreclosure judgments and sales when compliance with Regulation X would have shielded borrowers from such actions. As a consequence of these violations, SLS was mandated to provide {$770000.00} in monetary relief to consumers, waive {$500000.00} in borrower deficiencies, pay a {$250000.00} civil money penalty, and implement stringent compliance procedures to adhere to RESPA and Regulation X. 

SLS 's disregard for complying with the terms of my HELOC, particularly the mandate to furnish regular statements as stipulated, has led to misinformation about my loan status and imposed a substantial financial burden at present. The company 's non-compliance with regulatory obligations and their foreclosure threat, demanding an excessive down payment and interest, is not merely unjustifiable, but ethically unsound, unfairly jeopardizing my home. 

Furthermore, despite multiple attempts, SLS has refused to provide the requested documentation regarding statements made about my loan and its status, exacerbating the aforementioned issues. 

The sequence of events, including the impactful actions taken by the CFPB against SLS in 2020, underscores a disconcerting pattern of regulatory non-compliance and predatory practices. SLS 's history of consumer complaints, litigation across diverse jurisdictions, and the conspicuous absence of adherence to ethical and codified business practices further accentuate their consistent deviation from lawful conduct. 

Given the recent CFPB Consent Order and the distressing recurrence of unlawful practices by SLS, I earnestly implore you to take action to hold SLS accountable for its persistent violations. It is imperative to shield consumers from enduring further exploitation resulting from such abusive practices both at present and in the future. 

Your cooperation in this regard would be greatly appreciated. Thank you for your attention to this urgent matter.

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