Consumer complaint received 2017-04-21
Company: SELECT PORTFOLIO SERVICING, INC.
State: MO
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account

Complaint:
Ever since my mortgage was transferred t o SPS Servicing, I have had one issue after the  next due to the lack of competence of their employees and well as their flat out misrepresentations. As a result, I can not trust any statements that come from them orally or in written communications. These are the issues that I have had to deal with :  ( 1 ) I received a notice from my home owner 's insurance that they were cancelling my policy because SPS had not paid them despite the fact that I paid insurance in my monthly escrow ( 2 ) After being encouraged to apply for a loan modification, I was told my a representative over the phone that my payment was a certain amount. I paid my first trial payment. Then, a couple of weeks later, I was told by a separate agent that my payment was {$300.00} higher than the original amount I was told. No explanation or apology was given for this mistake. ( 3 ) After I finished the trial modification and received my final paperwork with my permanent loan amount, I called my relationship manager ( the one employee who worked on my loan modification and was most knowledgeable about the loan ) and asked if the final payment amount on my paperwork included principal and interest, taxes and insurance, and PMI. She assured me that it included all of the things. I made my first permanent payment following the modification. A couple of weeks later, I get a statement notifying me that my payments were increasing by {$270.00}. It took MONTHS for me to get a clear explanation for this only to be told that it was increased because the PMI was not included in the final paperwork given to me. Note, my relationship manager  explicitly told me that it was incldued. I am left to take their word that they mistakenly left the PMI out the first time without any documentation to reflect such. Again, I received no apology for this situation.  ( 4 ) Late last year, I made payments that should have been attributed to my entire mortgage ( P & I and escrow ). For some inexplicable reason, SPS reversed two payments without my permission or authorization and applied them only to P & I, which partially caused shortage of my escrow. They have sent written documentation telling me that these reversals were done at my request while their agents have confirmed over the phone that there are no notes in my account to indicate that I ever made any such request. Just today, I virtually demanded an apology from one of their employees for this lie and she refused to give me. She claims that they will reverse the payments back to what they were originally designated for. I have zero confidence that they will be able to do this without screwing something else up and further disadvantaging me. Mind you, I have been forced to make extra escrow payments in my monthly mortgage because of their   XXXX   XXXX  . ( 5 ) Because of all these issues, on my account, I demanded a payment history so I can see exactly where my payments went. I was shocked to find that during the three months that I was going through trial " modification '' that SPS NEVER actually modified my loan. They took the same P & I that I paid prior to modification. The only thing they reduced was the money going into my   escrow account. Again, this was done without my approval or consent.  For three months, my e scrow was being shorted on a scam alleged modification. This is also a huge reason why I am currently making additional escrow payments. SPS wo n't admit this and represented to me that my escrow was short because of the reversals that I request ed ( wh ich as noted above, was a lie ). Sample math shows that, even if I had approved those reversals, that someone else contributed to the significant shortage that I am being forced to pay. I am demanded th at SPS ex plain why they shorted my escrow instead of modifying my loan. I am also demanding that they right this wrong and compensate me for their lies and fraudulent behavior.

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