Consumer complaint received 2018-10-26
Company: SELECT PORTFOLIO SERVICING, INC.
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
In XX/XX/XXXX XXXX sent me a letter stating that my Mortgage Loan APR, was automatically reducing to 8.4 % from 9.875 %, and it was locked for 5 years. Soon after, XXXX XXXX  XXXX took over XXXX, I told XXXX  XXXX XXXX about the automatic rate drop XXXX promised me for 5 years ( XXXX-XXXX ) and XXXX XXXX  XXXX wouldn`t honor it. 
I wrote XXXX XXXX XXXX Corporate Headquarters twice, they stated I was never mailed a letter like that from XXXX. I assured them that I did, and I wrote them again stating that I still have the original letter. They wouldn`t honor it a second time. 
Soon after, XXXXXXXX XXXX took over my Mortgage loan. Select Portfolio Servicing is the servicer of my loan. I have told them over and over repeatedly, that my balance is not correct because my balance should be less because my APR should be less for 5 years and I would be paying more balance and less interest over the 5 year term. They will not accept this part of my loan servicing either. I payed {$120000.00} for my home in XXXX and now in XXXX Select Portfolio and XXXXXXXX XXXX say that I owe just over {$220000.00}. and they are trying to foreclose on my property in the next few months. 
I recently read the CFPB bulletin, dated XXXX, page 4 to servicers about loan transfers and making sure they know about any modifications or trial offers made by previous servicer. And I wonder why nothing has ever been done on my loan. The following is pasted from the article ... ... 

During a number of examinations, CFPB examiners determined that servicers had failed to properly identify loans that were in a trial or permanent modification with the prior servicer at time of transfer. In other exams, CFPB examiners found that servicers had failed to honor trial or permanent modification offers unless they could independently confirm that the prior servicer properly offered a modification or that the offered modification met investor criteria. In some of these instances, CFPBs examination determined that the transferee servicers did not obtain all of the information they needed from the transferor servicer. As a result, the servicers required borrowers to submit additional paperwork or to provide copies of financial documents they had already submitted to the transferor servicer. These servicers also subjected some borrowers to substantial delays while reunderwriting their loans. In some cases, the borrowers subsequently received a new modification with inferior terms, and in others, the servicer actually conducted a foreclosure sale. In all of the cases discussed above, CFPB examiners concluded, based on the particular facts, that the servicers had engaged in unfair practices. 

The following from the same article was never done by either bank as well ... 

Error Resolution Procedures ( 12 CFR 1024.35 ) and Requests for Information ( 12 CFR 1024.36 ) Servicers are required to meet certain procedural requirements for responding to notices of error and written information requests.

If the transferee servicer receives a notice of error or information request from the borrower or the borrowers agent, the transferee servicer must comply with all applicable requirements under 12 CFR 1024.35 and .36 within the regulatory timeframes, even if the transferor was servicing the loan at the time of the alleged error or the event about which information is requested.

A transfer does not relieve transferor servicers from their obligations under 12 CFR 1024.35 and .36. Transferor servicers are obligated to respond to notices of error and information requests received from the borrower or borrowers agent up to one year after the loan was transferred or discharged.10 In closing, something has to be done about the amount my bank says I owe and furthermore I don`t see how they have the right to foreclose on my property when they don`t even know how much I really owe.

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