Consumer complaint received 2020-09-14
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
On XX/XX/XXXX we submitted our latest Notice of Error and Qualified Written Request to our mortgage loan servicer, Select Portfolio Services , Inc. ( SPS , Inc. ) detailing an ongoing dispute with the company regarding the company 's incorrectly reported unpaid principal balance on our mortgage loan with them. We have disputed the unpaid principal balance amount with them since our first inquiry to them in XX/XX/XXXX, when we first identified the error in the company 's reported principal balance. Since then, we have submitted 8 notices detailing our dispute, along with extensive and irrefutable evidence to back up our claim. In each case, except our most recent submission, SPS , Inc. has replied to our notices, including our next most recent submission on XX/XX/XXXX where they replied on XX/XX/XXXX. However, they have not corrected their error under 12 C.F.R. 1024.35 nor have they correctly explained their unpaid principal balance with a legally supported explanation under the Loan Agreement and Deed of Trust that governs their fiduciary obligations when they serviced our loan. Furthermore, they have not provided any direct and irrefutable evidence to support their unpaid principal balance claims, or that refutes our error notice or the evidence that we provided them and that we used in our dispute with them. 

On XX/XX/XXXX we submitted to SPS, Inc. our latest Notice of Error where we explained - using the Loan Agreement and Deed of Trust, the loan amortization table ( that SPS provided us ), the XXXX Forbearance Agreement ( that we successfully completed and that did not include an agreement to defer any installment payments or accrued interest ), our payment history, past periodic statements and other supporting evidence - that the correct principal balance was exactly or almost {$110000.00} and that the loan will be fully paid off on the loan maturity date on XXXX, XXXX. 

As of XX/XX/XXXX SPS , Inc. has incorrectly reported the unpaid principal balance as {$200000.00}, even though they report the identical repayment terms, loan maturity date, Loan Agreement, Deed of Trust, payment history and loan amortization data that we used to determine the correct unpaid principal balance of {$110000.00}. In their past 8 responses to our repeated inquiries and Notices of Error, SPS , Inc. has attempted to explain that their reported principal balance was correct because the " prior loan servicer '' ( XXXX XXXX XXXX XXXX XXXX XXXX ), '' deferred accrued interest to the end of the loan '' or " added deferred interest to the principal balance '' or similar nonsensical explanations that were not legally supported under the Loan Agreement and Deed of Trust between us. 

In our XX/XX/XXXX and XX/XX/XXXX Notices of Error, we explained to SPS, Inc. how their explanations for their reported principal balance were nonsensical and not legally supported under the Loan Agreement and Deed of Trust. We also further explained, using over 100 pages of extensive and irrefutable evidence, how XXXX XXXX XXXX XXXX, XXXX misappropriated almost {$72000.00} of delinquent installments that we paid to them, instead of applying them to the loan as they were solely obligated under the Loan Agreement and Deed of Trust. We also explained how the {$72000.00} that we forwarded to XXXX XXXX XXXX XXXX XXXX has never been accounted for by any of the 3 loan servicers of our mortgage ( XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX and SPS , Inc. ), and has been missing and unapplied to our loan since XX/XX/XXXX. We also explained how XXXX XXXX XXXX, XXXX fraudulently reported the almost {$72000.00} that they misappropriated as " Deferred Interest ''. Lastly, we explained how the almost {$72000.00} of misappropriated and unapplied funds accounts for the difference between the correct principal balance of {$110000.00} and SPS , Inc. 's incorrectly reported principal balance of {$200000.00} on XX/XX/XXXX and how SPS, Inc. 's " deferred interest '' explanations for their reported principal balance were incorrect and not legally supported under the Loan Agreement and Deed of Trust.

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