Consumer complaint received 2021-08-31
Company: SELECT PORTFOLIO SERVICING, INC.
State: IL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
In XX/XX/XXXX, my mortgage servicer was transition from XXXX XXXX  to SPS ( Select Portfolio Servicing ). It is important to note that my second mortgage had a maturity date of XX/XX/XXXX, triggering a balloon payment of approx $ XXXX. At the time of the transfer, I was working with XXXX on review of my loan for a COVID-19 hardship, but that transfer could not be halted during the review. Eventually, in XX/XX/XXXX I received a letter and subsequent customer service calls from SPS reminding me of the impending maturity date and asking if I was experiencing a hardship, especially around COVID-19, and was interested in a Request for Mortgage Assistance ( RMA ). After further discussions with SPS in late XXXX and early XXXX, I submitted a RMA package electronically through their website per their instruction on XX/XX/XXXX, with full backup of supporting documents due to both experiencing a XXXX hardship and need to extend the maturity date beyond XXXX. 
Each month well into XXXX, SPS would request additional documents to support my submission, beyond the initial requests. In late XX/XX/XXXX, I noticed that my autodraft month payments for this 2nd mortgage showed delinquent on my online account, and my bank records did not show payment of the {$210.00} due since XX/XX/XXXX. When I spoke to a SPS representative, the informed me that due to the maturity date in XX/XX/XXXX, they turned off my autopay feature. I then asked can I make a payment through the SPS webportal, they said that was not possible as that was shut off too. I then inquired as to how I was then being represented to the credit bureaus for these several months, and was told I was being marked as " late-no payment ''! I communicated that this was not something I had agreed to, and immediately wanted corrected. Another SPS representative finally stated I can make a payment by wire transfer for the missing 3 months for {$860.00}, plus they would correct my credit reporting as well to recognize I was in a mortgage modification review and not show me as " late ''. Per their instruction, I wired the funds on XX/XX/XXXX to SPS XXXX Bank account and they confirmed receipt. 
More month past, and XXXX continue to receive collections calls from SPS alerting me of the XX/XX/XXXX maturity date and asking me do I have a covid-19 hardship, for which I explain I do and am already in a review process. For every call I have ever received, I authorized them to be recorded, so there could be a record. This will continuously show my willing to cooperate and how this program is flawed and in the end caused me damage. 
In XXXX, I received the determination that I was not applicable to the mortgage assistance program, and nothing can be done -- after 7 months of review. I then noticed that SPS also reported me late to the credit bureaus still from XXXX to XXXX. They then offered me options to sell or foreclosure my home. I repeatedly requested them to re-review my account and situation to representatives and managers, with no further assistance available, but oddly they began to offer me an opportunity for a " forbearance program '', which I though was strange and ignored. When I reviewed my credit report, it showed I fell from a credit score of XXXX to XXXX due to being reported late during this review process -- - again, nothing I ever accepted, nor authorized! 
On XX/XX/XXXX I escalated a request for an internal dispute investigation within SPS through a manager to both review my delinquent credit reporting and my continued willingness to pay the account in full, and was told to expect a reply within 7 business days, plus the manager would call me directly to discuss the outcome soon after that determination. I followed up with a call to SPS on the XXXX, and told no determination was made at that time, plus told the review could take up to 30-days. This deeply concerned me as it meant that I could be marked additionally late for XXXX and XXXX depending on when the review completed and the final result, but I was instructed by the representatives time and time again to not pay the amount in full, but instead wait until the final result of the investigation. On XX/XX/XXXX, I received the determination from SPS that SPS will not request a change to my credit reporting and they would continue reporting as such " until the account is in final status ''. On XX/XX/XXXX, I called SPS to discuss this result with a manager, and they confirmed this was the result, which I stated was unfair to the entire process of a modification review. The SPS manager stated though that review was closed, I was applicable and approved for ANOTHER mortgage assistance review process if I was experiencing a COVID-19 hardship -- the COVID-19 forbearance program, and this program would abate payment for 3-months AND report to the credit bureaus as " Not Reported ''. I was confounded at this offer, and immediately asked why was I not offered that in XXXX or XXXX or at any time earlier?? I was told that they only reviewed me for one program initially, their typical mortgage assistance program that does not include consideration for COVID-19. Now that the initial consideration concluded, they would review me for this other one -- and I applicable for it. And this COVID-19 program allows for different than their typical program. You can imagine I was furious that I was only reviewed for a non-COVID-19 opportunity, when I clearly expressed my needs and concerns throughout the entire endeavor, and now I am damaged with a poor credit score.

I am seeking help from the CFPB to intervene in this matter and provide assistance in fixing my credit report and getting me into a proper COVID-19 assistance program.

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