Consumer complaint received 2019-08-13
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My late husband and I had a loan modification with XXXX in XX/XX/XXXX.

During the modification process, there was a bank error made on my mortgage account which has never been rectified and which has been carried over into subsequent modifications.

I have been disputing this issue since XX/XX/XXXX.

In reviewing the many complaints I have submitted to CFPB, this has been the issue of most of my complaints and it has never been resolved.

The whole problem started with the XXXX modification agreement in XX/XX/XXXX which capitalized the amount of {>= $1,000,000} into my mortgage account.

We signed the modfication papers for this agreement.

The next thing we knew, XXXX  cancelled that agreement and sent a new one dated XX/XX/XXXX to be signed and sent back and which capitalized the amount of {$27000.00} into my mortgage account. In addition we were required to send a cashier 's check for {$3000.00} with the new agreement.

XXXX  stated the reason for this increase in capitalization was that a payment for {$6400.00} which we sent in XX/XX/XXXX had returned from the bank. As a result, XXXX capitalized the amount of {$6400.00} back into my account and a fee of approximately {$3000.00} for accrued interest and administrative expenses. In addition, with the amount of {$3000.00} which we were required to pay with the new modification agreement, the total was {$12000.00} in additional charges capitalized into my mortgage account.

This was completely a bank error. We replaced the NSF check sent in XX/XX/XXXX with a cashier 's check # XXXX  for {$6400.00} which was never credited by XXXX to my mortgage account. This was the beginning of the bank errors made on my mortgage account. SPS keeps saying they have never received documentation of these payments and yet I have sent them bank statements and copies of cashier 's checks which completely substantiate my claim And to each of my complaints which I have submitted to CFPB, they have responded in the same manner.

I have requested a representative of their accounting department to call me to go over the account with me, and so far no one from that department has responded.

My Relationship Manager, XXXX XXXX, was never addressed this problem.

There are other excessive charges that were made on my mortgage account such as two payments in XX/XX/XXXX which were never credited to my account, an escrow charge for {$7400.00} for an insurance charge made in XX/XX/XXXX which was paid my us because prior to mid XX/XX/XXXX we were paying the taxes and insurance on the mortgage account.

In XX/XX/XXXX two payments were not credited to my mortgage account which according to the XXXX Payment Transaction History only shows payments credited through XX/XX/XXXX The amount of payments not credited to my mortgage account through XX/XX/XXXX is {$38000.00} plus applicable interest and penalties.

SPS is liable for the bank errors made on my account because SPS acquired the servicing rights on my account and as such is responsible for any past bank errors made on the account. I have been disputing this issue since XX/XX/XXXX and there is no statute applicable to my complaint.

The above claim does not include my dispute of amounts paid as trial payments on subsequent modifications, excessive charges for accrued interest and penalties and excessive escrow charges made from XX/XX/XXXX to XX/XX/XXXX stated on the XXXX  Payment Transaction History which I have sent to SPS. It does not include excessive interest and penalties or excessive escrow charges made on my account in XX/XX/XXXX and XX/XX/XXXX which I have outlined in my previous disputes. My mortgage account was capitalized {$170000.00} from XX/XX/XXXX to XX/XX/XXXX. Because of the above stated reasons, I am disputing the amount of approximately {$120000.00} that was capitalized into my mortgage account.

I am a senior citizen and I want to keep my home. SPS offer me a repayment plan in XX/XX/XXXX by which I am required to pay {$6.00}, 114.06 or twice the amount of my usual mortgage payment of {$3000.00} I have stated that I can not afford to pay twice the amount of the mortgage payment on my mortgage account and that I am being pushed into a foreclosure position by being offered a repayment plan that is not feasible with my current monthly income.

As a matter of fact, SPS did not request any income information from XX/XX/XXXX such as my income tax returns or a current P and L through the end of XX/XX/XXXX on which to base their repayment plan amount. They based their income calculation on an Profit and Loss through XX/XX/XXXX which is not an accurate statement of income.

I have requested SPS to modify the amount of the monthly repayment to an amount I can afford and to increase the amount of the balloon payment at the end of the twelve month period. So far SPS has refused to do so.

I have also requested that SPS change the amortization schedule on the loan to a 40 year loan which will make the repayment of any amount owed feasiible.

may owe on the mortgage account.

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