Consumer complaint received 2023-01-06
Company: Specialized Loan Servicing Holdings LLC
State: AL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
I have had a multitude of issues with Specialized Loan Servicing. 

XXXX ) I applied for a loan modification in XX/XX/XXXX. According to SLSs website, loan modification was approved. Unfortunately, I never received the loan modification package as required by CFPB regulation 1024.41 ( c ) ( 1 ) ( ii ). SLS was unable to provide a tracking number for the modification package. According to the USPS informed delivery, the package was not sent by USPS either. 

I filed a complaint with CFPB, on this clear violation of the CFPB regulation 1024.41 ( c ) ( 1 ) ( ii ) which requires the lender to ( ii ) Provide the borrower with a notice in writing stating the servicer 's determination of which loss mitigation options, if any, it will offer to the borrower on behalf of the owner or assignee of the mortgage. The servicer shall include in this notice the amount of time the borrower has to accept or reject an offer of a loss mitigation program as provided for in paragraph ( e ) of this section, if applicable, and a notification, if applicable, that the borrower has the right to appeal the denial of any loan modification option as well as the amount of time the borrower has to file such an appeal and any requirements for making an appeal, as provided for in paragraph ( h ) of this section. 

In lieu correcting the violation with the original Loan Modification that was not properly delivered to me as required by CFPB regulations, SLS sent a new loan modification that was substantially different than the original Loan modification including a higher down payment. This leads to the second issue with SLS.

XXXX  ) Before the expiration of the loan modification SLS sent in lieu of properly correcting their violation on the XXXX  loan modification, the online account information updated to show that somehow SLS had received Verbal Confirmation of Acceptance on XX/XX/XXXX. Screenshots of the account will be included with this complaint. On the advice of my attorney, I have only communicated with SLS in writing. Because the status of the modification changed prior to expiration of the Modification Due Date and I had not spoken to anyone with SLS, I sent a Qualified Written Request/Request for information under RESPA. I requested information on the Verbal Confirmation of Acceptance noted on the account. A copy of this letter will be attached.

Shockenly, I received a response to my Request for Information which claims SLS does not accept verbal agreements on Loan Modifications with no explanation on why the account showed Verbal Confirmation of Acceptance received on XX/XX/XXXX. 

One can only conclude that the purpose of the account status change prior to the deadline of XX/XX/XXXX was to confuse the borrower and further the violation committed with the original modification. 

XXXX  ) I received a letter stating the loan had been referred for foreclosure. To prevent foreclosure, I completed a loan modification application in an attempt to rectify the account. Conveniently now, with the XXXXst loan modification packet that was never properly delivered to me and the subsequent loan modification status changed on the account prior to the deadline, the only option offered now is short sale. 

There has never been a properly executed loan modification offer starting with the first error in failing to send the loan modification packet in writing. The original violation of CFPB regulations has never been corrected. The subsequent materially different loan modification did not address the original complaint filed to CFPB. Then, prior to the deadline for that loan modification, SLS changed the status of the account erroneously and deceptively.

There appears to be a systematic attempt by SLS to make loan modifications difficult, if not impossible through not following CFPB regulations, intentionally not delivering loan modification packets, and the use of their online customer portal to deceive and confuse borrowers in order to ultimately run out time and foreclose.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation