Consumer complaint received 2020-06-02
Company: Specialized Loan Servicing Holdings LLC
State: IL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Specialized Loan Servicing ( SLS ) acquired my note from XXXX XXXX XXXX in XX/XX/XXXX. When they acquired the note, my city 's services ( City Of XXXX ) was making payments on my behalf since I have been out of work and in a re-training program. XXXX asked SLS to forward them a XX/XX/XXXX W-9 form with the address where the payments should be made out to and sent. This is required by the Federal gov't to show where the XXXX sent payments to that address and the payments were credited to my account. The form was forwarded that included the address and payments were being made on time and SLS credited those payments to my account. Then in XX/XX/XXXX the payments were not being credited to the account. When calling to inquire, SLS claimed they were not receiving payments. This was not true. When explaining that payments had been received and applied up until now to the address provided on the W-9, SLS claimed that it was the incorrect address. When asking SLS to send a W-9 with the correct address, they said they would however it was never sent but XXXX still made payments on my behalf that were sent and SLS applied those payments. 


Prior to the start of the new year, XXXX requested SLS forward over a XX/XX/XXXX W-9 form to continue making payments on my behalf. It took several months until a Ms. XXXX sent XXXX the new form. There was absolutely no mistake about XXXX 's request to Ms. XXXX regarding the reason for the form. I spoke w/a rep ( which I recorded ) who confirmed she spoke with Ms. XXXX XXXX and confirmed the address on the W-9 was correct. Payments were sent over to the address on the XX/XX/XXXX W-9 but the checks were not being cashed nor being applied to my account. Inquiring with SLS claimed that they never received the checks and that the address on the W-9 form was incorrect. Speaking with XXXX ( teller agent ID  # XXXX ) recorded on XX/XX/XXXX, told me that SLS has MULTIPLE W-9 forms that she would investigate to see which W-9 would be the correct one and get back with me. XXXX did get back with me on XX/XX/XXXX and informed me that the W-9 form that Ms. XXXX sent, although having the incorrect address to send payments to, could not be changed. 

HOWEVER, according to my last statement ( XX/XX/XXXX ) SOME of the checks were cashed and applied to my account but SLS is still claiming that they never received any checks. There are also funds that were sent that are sitting in a suspense account ( per my XX/XX/XXXX statement ) waiting to be credited ( see most recent statement, attached ). If SLS has not received these payments then my statement would not reflect the suspense funds nor the other credits. 

In the meantime, I was sent a " Default and notice to Foreclose '' notice that would be initiated if the past due funds ( {$3200.00} ) were not satisfied within 33 days ( XX/XX/XXXX ). It should also be noted that the government COVID19 forbearance ends XX/XX/XXXX. I am also being charged inspection fees. 

When trying to call and get a resolution I am consistently stone-walled and given the run around. Teller agent XXXX ( ID # XXXX ) told me in order to get a resolution to fix the problem, I needed to speak with a " XXXX '' in the Escalations Dept. After calling several times I was told that manager " XXXX '' would call me back. I'm still waiting and have been dealing with this issue and attempting a resolution for over 8 months and do not wish to default on my loan when clearly there are payments being made and seen. 

It is my belief that Specialized Loan Servicing is choosing NOT to work toward a resolution to allow third party payments by NOT providing an appropriate W-9 form as they did for XX/XX/XXXX and INTENTIONALLY allowing the checks from XXXX to expire past 90 days in order to force a foreclosure to acquire the property based upon property values for my geographic area. 

Also, it should be noted that as of XX/XX/XXXX, The Consumer Financial Protection Bureau reached a settlement with Specialized Loan Servicing LLC, where the consent order requires the business to pay {$1.00} million in monetary relief to consumers in the form of redress and waiver of borrower deficiencies, pay a {$250000.00} civil money penaltyand implement procedures to ensure compliance with the Real Estate Settlement Procedures Act ( RESPA ) and its implementing regulation, Regulation X. 

The CFPB found that since XX/XX/XXXX, the lender violated RESPA and Regulation X by taking prohibited foreclosure actions against mortgage borrowers who were entitled to protection from foreclosure, and by failing to send or to timely send evaluation notices to mortgage borrowers who were entitled to them. These violations also constitute violations of the Consumer Financial Protection Act of 2010. In some cases, Specialized Loan Servicing 's violations of Regulation X short-circuited protections for consumers whose homes were ultimately foreclosed upon.

( NMP, Retrieved XX/XX/XXXX. XXXX XXXX XXXXXXXX XX/XX/XXXX ). 

Attached you will find my latest statement, written correspondence, along with a detailed timeline of my correspondence.

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