Consumer complaint received 2019-06-24
Company: SELECT PORTFOLIO SERVICING, INC.
State: FL
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
During the housing crisis, my home loan was originated by XXXX/XXXX and was a subprime loan as well as predatory. This bank engaged in mortgage origination, servicing and foreclosure abuses upon me. Numerous violations of the laws have been committed against me by XXXX/XXXX  in relation to this loan ( to name a few, not all inclusive ) : Fair Debt Collection Practices Act violations, predatory lending, TILA violations, valuation fraud, wire fraud, mail fraud, fraud inducement, and RESPA violations. My loan has a 10.69 % interest rate, when I qualified for a commercial loan ( s ) ; valuation fraud ( as the loan officer told me that they could not use my appraisal which I had completed less than 45 days earlier, the loan officer said we have to use our guy, upon their guy submitting his appraisal, my home value had increased by {$40000.00} ) ; the loan officer informed me that in order to qualify for my loan, I had to purchase XXXX/XXXX life insurance policy because I was a single male, with no kids or, wife and XXXX XXXX ( which I did purchase ) ; I was forwarded solicitations for loan refinancing and low rates by mail from XXXX/XXXX  which was why I met with them at their offices ; and the loan was a negative amortization loan. I was subjected to foreclosure abuses during the period of XX/XX/XXXX to present and have not received any relief in spite of the numerous settlement agreements by XXXX/XXXX with federal and state agencies as a result of the loans they originated. 
My home is presently valued by SPSs appraiser ( XX/XX/XXXX ) at {$150000.00} and SPS states that I owe {$500000.00} for the payoff/principal amount. ( SPS obtained my loan from XXXX XXXX XXXX, who obtained my loan from the loan originator XXXX/XXXX  ). 
In spite of me originally/allegedly having a loan for {$270000.00} from XXXX/XXXX on an artificially inflated property value ( as the home was only worth {$75000.00} ) ; the only transactions have been my loan being transferred/sold numerous times to other companies ( XXXX XXXX XXXX  and SPS ) and now I allegedly owe an additional {$220000.00}, from unknown excessive fees, and other unknown reasons. 
In XX/XX/XXXX, XXXX/XXXX agreed to settle charges of abusive and negligent foreclosure practices dating back to XX/XX/XXXX. They agreed to commit {$26.00} XXXX ( along with 4 other predatory banks ) to help underwater homeowners and compensate those who lost their homes due to illegal and improper foreclosure practices. In spite of this agreement, I HAVE NOT RECEIVED ANY MANDATED RELIEF FOR THIS UNDERWATER HOME IN WHICH I PRESENTLY RESIDE. 
Additionally, on or around XX/XX/XXXX, as part of an enforcement action by federal authorities and predicated upon XXXX/XXXX abuses the OCC and Federal Reserve laid out the framework in which borrowers would receive compensation for a wide range of foreclosure abuses and errors. 
INSTEAD OF XXXX/XXXX COMPLYING WITH THEIR CONSUMER RELIEF OBLIGATIONS, AND TO AVOID DOING SO ; XXXX/XXXX by and through deceptive and elaborate schemes and/or fraudulent actions sold/transferred my predatory loan to XXXX XXXX XXXX  to avoid providing the relief in which Im legally and lawfully entitled to receive and have not. 
As a result of XXXX/XXXX failing to comply with these numerous legal settlements and avoid providing me the relief to which Im entitled ; they transferred/sold my loan to XXXX XXXX XXXX ( who chose to ignore that my loan was originated with XXXX/XXXX ). 
Due to the housing crisis, and XXXX/XXXX  failing to provide any relief to me for their illegal actions ( in which Im legally entitled ) and to avoid foreclosure, I requested a modification from XXXX XXXX XXXX. XXXX XXXX XXXX ( who got my loan from XXXX/XXXX ( my loan originator ) ) failed to provide any creditable and meaningful foreclosure relief. Instead of XXXX XXXX XXXX  providing me the relief to which Im entitled from XXXX/XXXX ( as they originated my loan as well as participated in illegal foreclosure actions upon me ) ; XXXX XXXX XXXX choose to IGNORE THE FACT THAT MY LOAN ORIGINATED WITH XXXX/XXXX in order to avoid providing me relief. 
On XX/XX/XXXX, XXXX XXXX XXXX approved my request for a modification. They charged me {$9200.00} as a good faith payment ( in spite of me receiving no relief from XXXX illegal actions upon me and numerous settlements in which Im entitled to receive relief and still have not received ). 
On XX/XX/XXXX, XXXX XXXX XXXX  approved a Modification Agreement Limited Term Interest Only ( Five Year Limited Term Interest Only ). This agreement consisted of numerous excessive fees, interest and other unexplained charges and questionable principal. XXXX XXXX XXXX CHOSE TO IGNORE THAT MY LOAN WAS WITH XXXX/XXXX   AND FAILED TO PROVIDE ME THE RELIEF IN WHICH IM ENTITLED TO AS A RESULT OF ALL OF XXXX/XXXX   SETTLEMENTS. 
This modification from XXXX XXXX XXXX only steered me ( a struggling homeowner ) into a risky modification ( in spite of me receiving no relief from XXXX/XXXX illegal actions upon me and numerous settlements in which Im entitled to receive relief and still have not ), by offering interest-only loans instead of permanent modifications. Instead of modifying my mortgage into a stable affordable permanent modification, XXXX modified my loan into an unaffordable loan modification with ballooning monthly payments I can not afford. 
XXXX XXXX XXXX failed to make a good faith effort to avoid foreclosure for borrowers whose mortgage loans have unfair subprime terms. 
XXXX XXXX XXXX  appeared to favor short-term, interest-only mortgage modifications rather than permanent ones, even when a permanent modification was commercially reasonable. Then when the initial term of the mortgage expired, myself and borrowers would see mortgage payments balloon to an amount even higher than what I originally was paying and could not afford, setting me up to continue to face foreclosure. 
In XX/XX/XXXX, XXXX entered into a settlement which reflects a continuation of enforcement actions by the department and its federal and state enforcement partners to hold financial institutions accountable for abusive mortgage practices. The settlement parallels the {$25.00} XXXX XXXX XXXX XXXX ( XXXX ) reached in XX/XX/XXXX between the federal government, 49 state attorneys general and the District of Columbias attorney general and the five largest national mortgage servicers, as well as the {$960.00} XXXX settlement reached in XX/XX/XXXX between those same federal and state partners and XXXX XXXX  XXXX. This settlement with XXXX is the result of negotiations that, as has been reported in XXXX XXXX plcs Annual Report and Accounts, began following the announcement of the XXXX. 
Under the agreement announced today, XXXX  has agreed to provide more than {$470.00} XXXX in relief to consumers and payments to federal and state parties, and to be bound to mortgage servicing standards and be subject to independent monitoring of its compliance with the agreement. More specifically, the settlement provides that : XXXX  will pay {$100.00} XXXX : {$40.00} XXXX to be paid to the settling federal parties ; {$59.00} XXXX to be paid into an escrow fund administered by the states to make payments to borrowers who lost their homes to foreclosure between XX/XX/XXXX and XX/XX/XXXX ; and {$200000.00} to be paid into an escrow fund to reimburse the state attorneys general for investigation costs. 
By XX/XX/XXXX, XXXX will complete {$370.00} XXXX in creditable consumer relief directly to borrowers and homeowners in the form of reducing the principal on mortgages for borrowers who are at risk of default, reducing mortgage interest rates, forgiving forbearance and other forms of relief. The relief to homeowners has been underway and will likely provide more than {$370.00} XXXX in direct benefits to borrowers because XXXX will not be permitted to claim credit for every dollar spent on the required consumer relief. 
XXXX will be required to implement standards for the servicing of mortgage loans, the handling of foreclosures and for ensuring the accuracy of information provided in federal bankruptcy court. These standards are designed to prevent foreclosure abuses of the past, such as robo-signing, improper documentation and lost paperwork, and create new consumer protections. The standards provide for oversight of foreclosure processing, including third-party vendors, and new requirements to undertake pre-filing reviews of certain documents filed in bankruptcy court. The servicing standards ensure that foreclosure is a last resort by requiring XXXX to evaluate homeowners for other loss-mitigation options first. In addition, the standards restrict XXXX from foreclosing while the homeowner is being considered for a loan modification. 
In addition to the above, and predicated upon the banks mortgage abuses XXXX/XXXX reached an agreement with federal agencies to address its mortgage origination, servicing and foreclosure abuses in the amount of {$470.00} XXXX and to provide {$370.00} XXXX in creditable consumer relief to benefit homeowners across the country and to reform their servicing standards. General Counsel XXXX XXXX of HUD stated : Mortgage servicers have a responsibility to help struggling borrowers remain in their home, not to push them into foreclosure. This agreement is another example of how multiple agencies in the federal government and state attorney general across the country are working to make sure the mortgage industry treats consumers fairly. This agreement not only provides relief to borrowers affected by XXXX  past practices, it puts in place protections for current and future homeowners through tough mortgage servicing standards. They were mandated to help prevent past foreclosure abuses. This settlement agreement was entered into ( XX/XX/XXXX ) for {$600.00} XXXX with a series of federal agencies by the DOJ, HUD, CFPB and 49 states and the District of Columbia for XXXX/XXXX  engaging in these abusive mortgage practices. ***IN SPITE OF THIS SETTLEMENT, AS OF THIS INSTANT DATE, I HAVE NOT RECEIVED ANY MORTGAGE RELIEF WHATSOEVER IN SPITE OF MY LOAN ORIGINATING WITH XXXX/XXXX  AND BEING TRANSFERRED/SOLD NUMEROUS TIMES TO AVOID PROVIDING THE RELIEF IN WHICH IM LEGALLY ENTITLED AND HAVE NOT RECEIVED*** I HAVE NOT WAIVED ANY OF MY RIGHTS TO THE RELIEF IN WHICH IM ENTITLED AND HAVE NOT RECEIVED. 
In spite of all of these numerous settlement agreements by XXXXXXXX, I HAVE NOT RECEIVED ANY RELIEF TO WHICH IM ENTITLED. 
In XX/XX/XXXX, XXXX XXXX XXXX  reached an agreement on these types of false modifications they entered into with struggling homeowners ( I HAVE NOT BEEN GIVEN ANY RELIEF FOR THESE ILLEGAL ACTIONS UPON ME ). XXXX XXXX XXXX  was required to put a new loan modification program in place and review borrowers who currently have interest-only or short-term modifications to provide them more sustainable, affordable modifications. My interest-only fraudulent modification expires in XX/XX/XXXX. 
I HAVE NOT RECEIVED ANY RELIEF FROM XXXX XXXX XXXX  ( IN SPITE OF THE FACT THAT XXXX/XXXX IS MY LOAN ORIGINATOR ). INSTEAD, MY LOAN WAS TRANSFERRED TO SELECT PORTFOLIO SERVICING ( SPS ). 
I HAVE NOT RECEIVED ANY OF THE RELIEF TO WHICH IM ENTITLED FROM XXXX/XXXX  ( MY LOAN ORIGINATOR ) ; XXXX XXXX XXXX  ( OBTAINED MY LOAN FROM TRANSFER/SELL FROM XXXX/XXXX ( MY LOAN ORIGINATOR ) ; AND/OR SELECT PORTFOLIO SERVICING ( WHO OBTAINED MY LOAN FROM XXXX XXXX XXXX FROM TRANSFER/SELL ( IN SPITE OF THE FACT THAT XXXX/XXXX IS MY LOAN ORIGINATOR ).

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