Consumer complaint received 2021-05-26
Company: SELECT PORTFOLIO SERVICING, INC.
State: AZ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
SPS offered me an Unemployment Forbearance Plan. 
The attached document describing the plan is confusing to me and XXXX. 
On XX/XX/XXXX XXXX XXXX from XXXX XXXX and I called SPS to get clarification of the plan. We spoke with SPS representative XXXX ext XXXX. 
The two main questions were is there a balloon payment and where will the reduced monthly payment be applied to XXXX principle, interest, insurance and property tax escrow ) XXXX could not answer the escrow question but said " don't worry about the balloon payment, we will call you and see what your financial situation is and make adjustments to the Forbearance Plan. 

I would like the solution XXXX proposed to be put in writing. 
When I asked XXXX to put it in writing she refused. 

Why was the forbearance stopped in XX/XX/XXXX when guarantee existed till XXXX? 
The CFPB wrote and the original document is attached. 

" The Coronavirus Aid, Relief, and Economic Security Act ( CARES Act ) 1, which was signed into law on XX/XX/XXXX, provides up to 360 days of forbearance for mortgage borrowers with federally backed mortgages who request forbearance from their servicer and attest to a financial hardship during the COVID-19 emergency.3 In addition, in XX/XX/XXXX, the Federal Housing Finance Agency ( FHFA ), Federal Housing Administration ( FHA ), Department of Veterans Affairs ( VA ), or Department of Agriculture ( USDA ) announced that they were expanding their forbearance programs beyond the minimum required by the CARES Act for a maximum of up to 18 months of forbearance for borrowers who requested additional forbearance by a date certain.4 Through its mortgage market monitoring, the Bureau understands that servicers of mortgage loans that are not federally backed may be offering similar forbearance programs to borrowers. In addition, FHFA, FHA, USDA, and VA extended Federal foreclosure moratoria until XX/XX/XXXX '' SPS unemployment offer ( see attached for the original document " Congratulations! You have been approved for the Unemployment Program ( UP ). Under UP, you will be provided a temporary forbearance plan ( Plan ), which allows you to make reduced payments during the term of the Plan. Your unemployment plan payment was calculated as a percentage of your monthly income, including your unemployment benefits. As you are paying less than your monthly contractual payment, you will have a balloon payment due at the end of the plan to reinstate your account. The terms of this unemployment plan include the amounts necessary to bring your account contractually current plus any payments due during the duration of your plan. The total amount to reinstate your account is : Amount of Payments Past Due {$6700.00} Payments to Accrue {$2200.00} Total to Reinstate {$8900.00} Regular Payments Due During Plan {$13000.00} Total Repayment Plan Amount {$22000.00} What you need to do ... To accept this offer, you must make new monthly Plan payments in place of your normal monthly mortgage payment.Your new Plan payments are as follows : Payment Due Date Amount Payment 1 XX/XX/XXXX {$680.00} Payment 2 XX/XX/XXXX {$680.00} Payment 3 XX/XX/XXXX {$680.00} Payment 4 XX/XX/XXXX {$680.00} Payment 5 XX/XX/XXXX {$680.00} ''

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