Consumer complaint received 2020-07-13
Company: SELECT PORTFOLIO SERVICING, INC.
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
After a long battle, a modification was proposed in XXXX. Beginning XXXX, XXXX, three payments in the amount of {$1600.00} were required. Select Portfolio Servicing, Inc. DID NOT APPLY THE THIRD PAYMENT. 

SPS altered the agreement and stated we will be required to make a fourth trial payment, and still did not apply the third payment. I stopped making payments, as technically SPS violated the contract and Judge XXXX 's order : From XXXX v. XXXX XXXX XXXX, et al, XXXX XXXX writes : UNITED STATES DISTRTCT COURT FOR THE DISTRICT OF MASSACHUSETTS Civil No. XXXX UNITED STATES OF AMERICA, Plaintiff, v. SELECT PORTFOLIO SERVIClNG, INC. ( formerly XXXX XXXX XXXX ), a Utah XXXX, SPS HOLDING CORP. ( formerly XXXX XXXX XXXX XXXX ), a Delaware corporation, and XXXX XXXX XXXX, Defendants. 
Modifled Order ; INJUNCTIVE RELIEF I. 
IT IS THEREFORE ORDERED that Defendants, and each of them, their officers, employees, agents, representatives, and all other persons or entities in active concert or participation with them who receive actual notice of this Modified Order by personal service or otherwise, directly or through any corporation, subsidiary, division, or other device, are hereby permanently restrained and enjoined, in connection with the servicing of any loan, from : A. Failing to apply all amounts accepted in connection with a loan against interest and principal due, before crediting taxes, insurance or fees, pravided thai : ( I ) with respect to loans using uniform loan instruments with a " revision date '' prior to XX/XX/XXXX, Defendants may apply payments received in accordance with the provisions thereof, and ( 2 ) this requirement shall not apply to loans which have been referred to foreclosure in accordance with the requirements of 'this B. Failing to ( l ) accept as of the date of receipt, or to credit effective as of the date of receipt, amounts paid in connection with a loan that are equal to the scheduled monthly principal and interest amount or are short of that amount by {$25.00} or less ; and ( 2 ) advance the borrower 's due date, provided that this requirement shall not apply to loans which have been referred to foreclosure in accordance with the requirements of this Modified Order ; C. Failing, in the event that Defendants do not credit a payment, to send within five ( 5 ) business days of receipt of that payment a written notice to the consumer, at no cost to the consumer, that : ( 1 ) Encloses the payment being returned ( if the payment is being returned ) ; and ( 2 ) States in a clear and conspicuous manner : ( a ) that Defendants have not credited the payment ; ( b ) the reason ( s ) for declining to credit the payment ; ( c ) the amount the consumer must pay to ensure that Defendants will accept and credit a future payment ; and ( d ) a loll-free phone number for the consumer to call for assistance ; Provided that if a forbearance is being actively pursued or negotiated on a loan at the time of receipt of a payment, such notice may be sent within 7 Fifteen ( 15 ) business days of receipt.

D. Misrepresenting, expressly or by implication, any amount that a consumer owes ; E. Misrepresenting, expressly or by implication, that any fee is allowed under the loan instruments, permitted by law, Or imposed for services actually rendered ; F. Misrepresenting, expressly or by implication, the amount, nature, or terms of any fee or other condition or requirement of any loan ; and G. Failing to make disbursements of escrow funds for insurance, taxes and other charges with respect.to the property in a timely manner.

UNITED STATES OF AMERICA, Plaintiff, v. 
SELECT PORTFOLIO SERVTClNG, INC. ( formerly XXXX XXXX XXXX ), a  Utah corporation, SPS HOLDll ''! G CORP. ( formerly XXXX XXXX XXXX XXXX ), a Delaware corporation, and XXXX XXXX XXXX, Defendants. 
) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Civil No. XXXX MODIFIED STIPULATED FINAL JUDGMENT AND ORDER Plaintiff, the United States of America, acting upon notification and authorization to the Attorney General by the Federal Trade Commission ( " FTC '' or " Commission '' ) and the Secretary oftheDepartment ofHousingandUrbanDevelopment ( ''HUO '' ), has filed a.Motion toModify Order Preliminarily Approving Stipulated Final Judgment and Order as to XXXX XXXX XXXX and XXXX XXXX XXXX XXXX. ( " Motion '' ). The Motion alleges that justice requires modification ofthis Court 's XXXX, XXXX Order Preliminarily Approving Stipulated Final Judgment and Order as to XXXX XXXX XXXX and XXXX XXXX XXXX XXXX ( " StipUlated Order '' ). The parties request that several provisions of the Stipulated Order be modified.

Plaintiff and Defendants SPS Holding Corp. and Select Portfolio Servicing , Inc. ( collectively, " SPS '' or " Defendants '' ), formerly XXXX XXXX XXXX XXXX and XXXX XXXX XXXX, by and through their respective counsel, have agreed to entry ofthis Modified Stipulated Final Judgment and Order ( " Modified Order '' ) by this Court, without trial or adjudication of any issue of fact or law. The parties having requested the Court to enter thisModified Order '' it is therefore ORDERED, ADJUDGED, AN1 ) DECREED as follows : FlNDINGS 1. This Court has jurisdiction over Defendants and the subject matter ofthis action. Venue in the District ofMassachusetts is proper.

2. The complaint, filed on XXXX XXXX, states a claim upon which relief may be granted against Defendants under Sections 5 ( a ), 5 ( m ) ( 1XA ), and 13 ( b ) of the FTC Act, 15 U.s.c. 45 ( a ), 45 ( m ) ( 1 ) ( A ), and 53 ( b ) ; the FDCPA, 15 U.S.C. 1692 et seq., as amended ; the FCRA, 15 U.S.C. 1681 et seq., asamended ; Sections6and16 oftheRESPA,12U.S.C. 2605and2614 ; andSection3500.21 ofRegulationX,24C.F.R. Pt.3500.21.

1. The activities ofDefendants are in or affecting commerce, as " commerce '' is defined in Section 4 of the FTC Act, 15 U.S.C. 44.

2. Defendantshavenotadmittedany oftheallegations ofwrongdoingsetforth in the complaint or the Motion, and entry ofthe Modified Order is not an admission ofany such allegations ofwrongdoing or violation oflaw, Nonetheless, Defendants stipulate and agree to entry of the Modified Order in order to settle and resolve these disputes. 
3. Since the Stipulated Order was entered, the FTC and Defendants have consulted concerning implementation of its requirements. In light of these developments, the circumstances in this case have changed such that modification ofthe Stipulated Order is 2 necessaryandappropriate, andrelieffromcertainprovisions oftheStipulatedOrderisjustified.

6. Plaintiffand Defendants waive all rights to seek judicial review or otherwise challenge or contest the validity of the Modified Order, and Defendants waive any right that may arise under the Equal Access to Justice Act, 28 U.S.c. 2412.

7. Entry ofthe Modified Order is in the public interest. 

ORDER DEFINITIONS The letter from XXXX XXXX is highlighted to show you the " factual circumstances '' which he alleges are disproved, are in fact, supported. Why would a third payment of {$1600.00} made in XXXX, XXXX, which was not applied at that time, continue through XXXX to show on the attached Mortgage Statements as a " TOTAL UNAPPLIED BALANCE in two places and as an Unapplied Payment in yet a third area?

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