Consumer complaint received 2024-01-26
Company: SELECT PORTFOLIO SERVICING, INC.
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process
Sub-issue: Escrow, taxes, or insurance

Complaint:
In response to your letter starting from XX/XX/XXXX through XXXX XXXX statements due date XX/XX/XXXX continued to show monthly escrow payment of {$280.00} total payment due {$890.00} That is correct and should NEVER have changed XX/XX/XXXX!!!? XX/XX/XXXX SPS increased the escrow amount by {$290.00} also increasing the monthly payment by more than {$260.00} on a policy that was already in effect for 3 months prior to XXXXXXXX XXXX XXXXmended the policy XX/XX/XXXX with the same effective dates XXXX decreasing the policy by {$1400.00}. My {$1400.00} escrow only check sent to sps XX/XX/XXXX was the refund from XXXX  for the amended policy from {$3600.00} to {$2200.00} that was still effective XX/XX/XXXX. SPS cashed and posted on XX/XX/XXXX check # XXXX for {$1400.00} my XXXX refund and escrow only as a payment not back to escrow as noted. There for sps created a shortage Due to the misappropriation of the {$1400.00} escrow refund. SPS has acknowledged this misappropriation of the {$1400.00} escrow refund! 

I have proof from XXXX my insurance agent at the time ( included ) that SPS was notified and the amended policy was sent to SPS on XX/XX/XXXX followed by the {$1400.00} refund from XXXX in a check I sent XX/XX/XXXX to be applied to escrow which was cashed and posted instead as a payment on XX/XX/XXXX. The insurance and refund were processed all before my payment was due on XX/XX/XXXX. Which still had the escrow correct at {$280.00}. 

The payment due to SPS XX/XX/XXXX was not made, as I was in touch with Sps in XX/XX/XXXX about my escrow, I was told sps was going to re-run my analysis and give me a correct payment. As you can clearly see sps ran XXXX escrow analysis between XXXX XXXX. While the monthly statements showed {$280.00} was the escrow payment from XX/XX/XXXX through XX/XX/XXXX total payment due {$890.00} was CORRECT! XXXX and XXXX escrow jumped to {$540.00}, then started decreasing monthly beginning in XX/XX/XXXX to {$470.00} {$.00}, XXXX decreased again to {$350.00} where it remained until XXXX. Fluctuating drastically along with the total amount due. HOW DOES THAT HAPPEN? 

All of that going on while SPS is sending me escrow disbursement statements dated XX/XX/XXXX through XX/XX/XXXX. ( XXXX Analysis in 2 months XXXX and XXXX ) documenting monthly insurance payment as {$300.00} while charging me various escrow amounts upwards of {$540.00} on monthly statements. magically the insurance is updated on the XX/XX/XXXX escrow disbursement statement. The same month XXXX XXXX monthly statement showed an increase due to escrow and increased my payment over {$260.00}. EXPLAIN THAT! Nothing should have changed until XX/XX/XXXX. When the new premium was due. During this time, I am making monthly payments of {$960.00} overpaying every month {$70.00} which should have also covered the {$120.00} fee that keeps appearing on statements for whatever you charged me! 

XX/XX/XXXX through XXXX XXXX escrow decreased back to {$280.00}. The payment statements from XXXX XXXX XXXX are accurate and should have continued through XX/XX/XXXX. XXXX XX/XX/XXXX statements varied and drastically contradict the escrow disbursement statement from XX/XX/XXXX escrow. 

Moving into XXXX! The XXXX insurance policy is still in effect through XX/XX/XXXX. Monthly statements from XX/XX/XXXX through XXXX XXXX document escrow decreased from XXXX back to {$280.00}. Total payment due is back to {$890.00} The CORRECT amount give or take a couple of dollars. 

XXXX XXXX with XXXX XXXX effective XXXX premium {$2000.00}. XX/XX/XXXX What changed! Now the monthly statements show payments due 2 months out. XXXX due XXXX, XXXX due XXXX and so on. NOTHING HERE MAKES SENSE!! What was the reason for the change in XX/XX/XXXX? The insurance was effective XXXX XXXX XXXX and escrow should remain constant for the year!! 

In addition, this is a fixed rate loan and principle should be decreasing not increasing. Explain the monthly increase on principle as documented on statements. The statements do not match the escrow analysis or disbursement documents you have provided.

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