Consumer complaint received 2018-01-31
Company: SELECT PORTFOLIO SERVICING, INC.
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
I am writing this letter and submitting a claim because I believe financial harm and predatory lending practices are being done to me. Please reference mortgage loan # XXXX. The servicer of this mortgage is Select Portfolio Servicing ( SPS ). 

I would also like to note that I submitted a previous claim in regards to this same topic. REF Claim # XXXX and I thought my case was resolved with the confirmation letter provided to me by SPS on XX/XX/XXXX. 

I also believe that financial harm has been done to me. On XX/XX/XXXX, I received a confirmation letter from SPS stating that upon completion of the final trial modification payment that the final modification offer will include Principal, interest, taxes and insurance. Taxes and Homeowners Insurance is considered escrow. As proof of the false misinformation provided to CFPB and myself by SPS ( Select Portfolio Servicing ), I will be submitting all the pertinent documents, ranging from the letter stating that escrow will be included in the permanent modification documents along with the documents stipulating the terms and conditions of the new mortgage modification. 

That said I would also like to highlight financial harm that is being done just on the permanent mortgage modification offered. 

No Escrow in the mortgage modification as previously stated. 
It seems like this modification was streamline and no debt to income was taken into account Prior to default the length to maturity of this mortgage was roughly 19 years. With this new modification the length to maturity is roughly 20 years. The servicer and the owner of this mortgage could have extended this mortgage to 30 years. 
Prior to default my mortgage was {$1100.00}. XXXX now the new permanent mortgage payment will be {$320.00} excluding escrow. 
My current escrow is roughly {$650.00}. If SPS were to include Escrow in my mortgage payment then my new mortgage would add up to roughly {$950.00}. 

Now based on the information provided in the bullet points, the reason why I know financial harm as well as predatory lending practices are being done to me are as follow. 

According to the permanent modification documents and should I signed and accept the terms and conditions of this offer. I would incur financial harm because my mortgage amortization ( speed by which my mortgage will be paid off ) and the maturity of the loan are not completely factored in or are done as a predatory tactic. That is why my new mortgage payment will only be {$320.00} ( PRINCIPAL AND INTERERT ONY ) and not roughly {$460.00} ( PRINCIPAL AND INTEREST ONLY ). The servicer of the mortgage ( Select Portfolio Services ) and the owner of the note ( mortgage ) did not extend the mortgage maturity to at least 30 years in order to factor 31 % Debt to Income. 

Due to the new terms and conditions of the new mortgage modification, I incur a balloon payment of roughly {$53000.00}. Of the $ XXXX-balloon payment roughly {$17000.00} were not fully amortized. Therefore this will add {$17000.00} to the {$36000.00}, which according to the final modification terms will be in an escrow account, making a balloon payment of {$53000.00} upon maturity of the mortgage. 

In conclusion, I totally believe that the mortgage servicer ( SPS ) executed a streamline in house medication and never provided me the opportunity to submit my financial data so that the mortgage servicer can evaluate my debt to income. If the mortgage servicer had included my debt to income then the mortgage servicer would have immediately realized that including escrow my mortgage could have been roughly {$1200.00} based on the 19 years remaining on my mortgage and not extending the years to pay off the mortgage. 

For the record, between my Social Security and pension income, I make roughly {$3900.00}. If the servicer did a proper analysis of my debt to income, this mortgage offer would not have been made under these terms and conditions. When evaluating a mortgage modification including escrow the servicer and/or owner of the mortgage would normally do so based on a 31 % debt to income. Lastly when a modification is done, ESCROW is mandatorily Impounded meaning that the mortgage payment must include Principal, interest, taxes and insurance ( ESCROW ) With that being stated I am submitting this claim and state that financial harm is being done to me and that the verbal original terms and conditions along with a confirmation letter stating that Escrow will be included in my final modification are being violated.

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