Consumer complaint received 2020-12-14
Company: SELECT PORTFOLIO SERVICING, INC.
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Re.- Select Portfolio Servicing , Inc . 



To Whom It May Concern : The purpose of this letter is to file a formal complaint against Select Portfolio Servicing , Inc. ( SPS ). My current interest rate is 3.50000 %. SPS has now unilaterally changed the terms of my rate limit and has announced that my interest rate will be raised to 6.5000 % as of XX/XX/XXXX. Currently the bottom of my rate limit is 2.75 %. In fact, for years I have been receiving written documentation stating : Rate Limit : Your rate can not go lower than 2.75000 % over the life of your loan. Your rate can decrease each adjustment by no more than 2.00000 %. ( see attached XXXX  change of interest rate letters from XXXX through XXXX EXHIBIT A ). 

LOAN HISTORY *On XX/XX/XXXX I entered into a mortgage agreement with XXXX XXXX XXXX XXXX XXXX  ( lender ). I signed an adjustable rate note. It appears that XXXX XXXX  XXXX also serviced the loan. 

XXXX XX/XX/XXXX XXXX XXXX XXXXXXXX XXXX this loan to XXXX XXXX XXXX ( see attached letter EXHIBIT B ). XXXX XXXX XXXX serviced the loan. 

XXXX XX/XX/XXXX XXXX  began servicing the loan ( see attached letter - EXHIBIT C ). On several occasions, a XXXX representative has told me over the phone that the loan was backed by XXXX XXXX. 

XXXX XX/XX/XXXX SPS became my new loan servicer ( see attached letter EXHIBIT D ). SPS has informed me that my loan is backed by XXXX XXXX XXXX XXXX XXXX XXXX see attached letter EXHIBIT E ). 

THE NOTE It is my understanding, that at some point, the original note on my mortgage was found to be a predatory loan. Therefore, it was modified by XXXX and/or XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. My belief stems from the fact that, although the note states that I must make monthly principal and interest payments at a minimum interest rate of 6.500 %, I have never paid this. I have never been required to make principal and interest payments at an interest rate of 6.500 %. In fact, my interest rate from XX/XX/XXXX through XX/XX/XXXX fluctuated between 3.25000 % and 4.12500 %, but the interest rate never reached 6.500 %. ( see attached XXXX letters EXHIBIT F ). Also, between XX/XX/XXXX to XX/XX/XXXX, I received a series of letters from XXXX stating : Your rate can not go lower than 2.75000 % over the life of the loan ( see attached XXXX letters EXHIBIT A ). Therefore, even though the Note may reflect a minimum interest rate of 6.5 %, the minimum interest rate was evidently modified to 2.75000 % at one point during the life of the loan. 

SELECT PORTFOLIO SERVICING, INC. ( SPS XXXX SPS began servicing my loan on XX/XX/XXXX. The statements I have received from SPS for XXXX through XX/XX/XXXX have all had an interest rate of 3.5000 % ( see attached SPS statements EXHIBIT G ). On or about XX/XX/XXXX I received a letter from SPS entitled : CHANGES TO YOUR MORTGAGE INTEREST RATE AND PAYMENTS ON XX/XX/XXXX ( see attached SPS letter EXHIBIT H ). This letter stated that beginning XX/XX/XXXX my interest rate was going to be increased from 3.50000 % to 6.50000 %. I called SPS on XX/XX/XXXX and spoke to a representative named XXXX, at extension XXXX. I explained to him the situation. The representative acknowledged he had a XXXX  letter that clearly stated that my rate can not go lower than 2.75000 % over the life of my loan. The representative also noted that the interest rate I was currently receiving from SPS was 3.5000 %. Based on these discrepancies the representative said this matter would be sent to a special department to be reviewed. On or about XX/XX/XXXX I received the response from SPS special department ( see attached SPS letter EXHIBIT I ). SPS responded that they had completed a full review of my complaint and that : the interest rate of 3.5 % was given by your prior servicer. Upon review of the account, an addendum to the Adjustable Rate Note you signed specified your interest rate would never be below 6.5 %. With this SPS has made it clear they intend to require me to make principal and interest payments at a rate of 6.5 %, despite evidence that the minimum interest rate was changed at some point to 2.75000 % and the fact that I have never previously been required to pay principal and interest at a rate of 6.5 % throughout the life of this loan. 

CONCLUSION I have never, at any point, throughout the life of this loan, been required to make principal and interest payments at a rate of 6.50 %. My interest rate from XX/XX/XXXX through XX/XX/XXXX fluctuated between 3.25000 % and 4.12500 %, but the interest rate never reached 6.500 %. My current interest rate is 3.5 %. Furthermore, from XX/XX/XXXX until XX/XX/XXXX I received a series of letters from XXXX  stating : Your rate can not go lower than 2.75000 % over the life of the loan. 

It is my understanding that when a new institution acquires the rights to service a loan from a previous institution, that new institution acquires those rights subject to whatever the previous institution had in place and was enforcing. It is clear that the previous institution XXXX, for years, had communicated to me that my interest rate can not go lower than 2.7500 %. So, this was the minimum interest rate. For years these have been the terms of my interest rate. Upon acquiring the right to service my loan from XXXX, SPS took subject to XXXX  written and documented determination that my interest rate can not go lower than 2.7500 %. It is ironic that prior to my loan being transferred to SPS I received letters of assurance from XXXX and SPS stating : This transfer doesnt affect any of the terms of your loan, other than the terms directly related to the servicing of your loan ( see attached SPS and XXXX  letters EXHIBIT D & EXHIBIT J ). 

Well, an interest increase of 3 % and changing the bottom of my interest from 2.7500 % to 6.5 %, IS A HUGE CHANGE TO THE TERMS OF MY LOAN. SPS is now, over 13 years later, requiring me to make payments I have never been required to make. It is shameful what SPS is doing to me, specially, at a time when an epidemic is plaguing our country. I hope SPS is not allowed to get away with this. 

Thank you for taking the time to review this complaint against SPS. 


EXHIBITS LIST EXHIBIT A XXXX  Interest Rate Change Letters : XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX. 

EXHIBIT B XXXX XXXX  XXXX  letter advising of new service provider XXXX. 

EXHIBIT C XXXX XXXX letter advising that XXXX XXXX  which is serviced by XXXX will change to XXXX  systems. 

EXHIBIT D XXXX XXXX letter advising that servicing of the loan is being transferred to SPS. 

EXHIBIT E XXXX SPS letter advising that XXXX XXXX XXXX XXXX XXXX is backing the loan. 

EXHIBIT F XXXX  Interest Rate Change Letters : XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX. 

EXHIBIT G SPS Statements : XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX ; XX/XX/XXXX. 

EXHIBIT H SPS Interest Change Letter : XX/XX/XXXX. 

EXHIBIT I SPS Response to Complaint letter dated XX/XX/XXXX. 

EXHIBIT J XXXX SPS letter advising that servicing of the loan will be with SPS.

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