Consumer complaint received 2023-03-24
Company: SELECT PORTFOLIO SERVICING, INC.
State: IL
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
Fact we obtained a ( Residential Mortgage Backed Securitized Loan ) with XXXX  XXXX Bank XXXX, XXXX  XXXXXXXX XXXX was closed by the XXXX, and FDIC became the Receiver, XXXX XXXX XXXX XXXX  became the Servicer, after the FDIC became Receiver XXXX, the next day XXXX, the Parent Company of XXXX  XXXX XXXX  XXXX XXXX XXXX XXXX XXXX ) filed bankruptcy, ( Case # XXXX ) and part of the reorganization the XXXX Liquidation, Canceled or Extinguished all Securitized bonds, and reissued Stocks, per United States of Security Exchange Commission Quarterly report dated XXXX. 

After XXXX filed the Bankruptcy Case, XXXX, XXXX, the FDIC in its corporate capacity ( XXXX ), and the Receiver became involved in several lawsuits contesting the ownership of over {$20.00} XXXX in assets. 

The parties reached a settlement in the Bankruptcy Case that was approved by the FDIC 's Board of Directors on XX/XX/XXXX, and XXXX filed a plan of reorganization incorporating the terms of the settlement ( " XXXX Bankruptcy Settlement '' ). Several parties objected to XXXX 's proposed plan, in particular, XXXX 's proposal to release its claims against XXXX, FDIC-C, and the Receiver. At the request of XXXX 's equity holders, the Bankruptcy Court appointed an examiner to thoroughly investigate XXXX 's claims against XXXX, FDIC-C, and the Receiver, and determine whether the proposed settlement ( which would release these claims ) was fair and equitable to XXXX. The examiner found that the XXXX Bankruptcy Settlement was a fair resolution. 

On XX/XX/XXXX, the Bankruptcy Court entered an order confirming the seventh amended plan - PDF proposed by XXXX and its co-debtor XXXX XXXX XXXX ( the " Plan '' ). The XXXX Bankruptcy Settlement - PDF, as amended from time to time, remains integral to and incorporated in the Plan. The Plan and Settlement became effective on XX/XX/XXXX. The Receiver received {$840.00} XXXX pursuant to the terms of the XXXX Bankruptcy XXXX. 

Litigation filed by XXXX XXXX XXXXXXXX XXXX XXXX ( XXXX ) and XXXX and Settlement Soon after XXXX failed, XXXX sued the Receiver and JPMC, claiming {$6.00} XXXX to {$10.00} XXXX in damages arising out of XXXX 's alleged breach of representations and warranties made in connection with mortgages sold to securitized trusts. ( Amended Complaint - PDF. ) In XX/XX/XXXX, the United States District Court for the District of Columbia issued a partial summary judgment decision finding that the Receiver retained liability for DBNTCs claims to the extent that such claims were not reflected at a stated book value in the financial accounting records of XXXX as of the failure date. ( Amended Memorandum Opinion - PDF. ) The Receiver sought appellate review of the decision in the United States Court of Appeals for the District of Columbia Circuit. 

Also, XXXX filed lawsuits and cross-claims seeking indemnification against the Receiver and FDIC-C ( Indemnification lawsuit - PDF ) and submitted over XXXX notices of potential indemnity claims. ( Notices can be found at Group XXXX : XXXX XXXX XXXX relating to Washington XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX in the Freedom of Information Act ( FOIA ) Service Center Reading Room and, XXXX XXXX XXXX relating to Washington XXXX Bank XXXX Bank XXXX XXXX XXXX at, Group XXXX : XXXX XXXX XXXX relating to Washington XXXX XXXX Bank P & A ). 

On XX/XX/XXXX, the FDIC XXXX XXXX XXXX approved a settlement among the Receiver, FDIC-C, XXXX, and XXXX, to settle the lawsuit filed by XXXX, the Indemnification lawsuit filed by XXXX and all claims for indemnification made by XXXX against the Receiver, including XXXX other lawsuits disputing JPMCs responsibility for tax liabilities of the failed XXXX ( XXXX Settlement ). Under its terms, the XXXXFDIC Settlement became effective only if XXXX obtained court approval XXXX the settlement. On XX/XX/XXXX, the XXXX XXXX XXXX XXXX XXXX, California entered an order approving the settlement, and that order became final and unappealable on XX/XX/XXXX. Under the settlement agreement, in exchange for releases from XXXX and XXXX, the Receiver paid XXXX {$640.00} XXXX and issued XXXX an allowed unsecured receivership claim of {$3.00} XXXX on XX/XX/XXXX. The XXXX-FDIC Settlement agreement can be found at the following link : XXXX-FDIC Settlement agreement - XXXX. 

As a result of the settlement, the parties dismissed certain lawsuits pending in the district court and an appeal pending in the court of appeals. These lawsuits had been stayed while XXXX obtained approval of the settlement by the California state court. 

We are now going thru a Foreclosure, Plaintiff - ( XXXX, XXXX, AS TRUSTEE, IN TRUST FOR REGISTERED HOLDERS OF XXXX ASSET-BACKED CERTIFICATES XXXX XXXX XXXX XXXX, ) ! st per Mortgage Electronic Registration Service there is no Mortgage under XXXX, and Per XXXX XXXX Company , a Assignment was added for XXXX, XXXX XXXX XXXX without a Mortgage being added, also the Assignment was done after XXXX, which makes it unauthorized because XXXX XXXX XXXX XXXX XXXX Became Trustee over XXXX  XXXX XXXX effective date XXXX XXXX As for all unsecured assets of XXXX XXXX XXXX that was not part of the ( XXXX XXXX XXXX XXXX Bank ) belongs to Receiver ( FDIC ) Per XXXX XXXX XXXX Attorney for ( XXXX ) the Receiver FDIC is responsible for the Note that was not repurchased, by XXXX XXXX XXXX XXXX any other Bank XXXX or Company. 
XXXX XXXX XXXX XXXX  continued to collect Mortgage Payments as Servicer for Washington XXXX Bank until XXXX when they sold the Servicing rights to Select Portfolio Servicing. Transferring the Original Note from XXXX XXXX XXXX also showing Pool Number- ( RMBSL ), and that Pool number was Canceled by XXXX Liquidation Trust , Per United States Security and Exchange Commission quarterly report dated XXXX, also shown on Bankruptcy paperwork making XXXX XXXX XXXX XXXX XXXX Trustee over XXXX XXXX Bank XXXX

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