Consumer complaint received 2016-12-05
Company: SELECT PORTFOLIO SERVICING, INC.
State: NY
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
It has come to our attention from external sources that a lawsuit has been filed against XXXX XXXX and XXXX XXXX in the State of New York solely by US Bank, National Association, as Trustee, Successor in Interest to XXXX Bank, National Association, as Trustee for XXXX XXXX Mortgage Trust, XXXX. We have no contractual relationship with US Bank, as Trustee and deny any and all allegations of any amounts US Bank, as Trustee. On XXXX XXXX, XXXX XXXX XXXX XXXX from US Bank Corporate Trust Services wrote us a letter ( Attached ) in response to a Qualified Written Request. The XXXX 's letter stated, " US Bank is merely the trustee for the Trust which owns the mortgage and note. Please note the Trust is the owner of the mortgage and note, not the trustee, or US Bank in its individual capacity. '' On XXXX XXXX, XXXX XXXX XXXX wrote XXXX XXXX a letter ( Attached ) which stated, " we are merely the trustee for the Trust that owns the mortgage and note on this property. The servicer is the party to the Trust that has the authority and responsibility to make decisions and take action regarding individual mortgage loans in the Trust. The trustee has no authority or responsibility to review and or approve or disapprove of these decisions and actions. '' A brochure ( Attached ) was included with the XXXX letter which contained the following language : " US Bank, as trustee, has no control over the initiation or conduct of these foreclosure proceedings ... Trustees play no role in initiating or conducting the foreclosure process, have no role in granting or denying a loan modification, and have little or no information relating to mortgage loan activities including foreclosures. '' Unequivocally, the role of the Trustee is clear and their correspondence states explicitly that US Bank as Trustee " has no discretion or authority in the foreclosure process and does not initiate foreclosure actions. '' Therefore it appears that some unknown and unidentified party ( XXXX ) initiated a foreclosure action as Index # XXXX in the Supreme Court of the State of New York County of XXXX by and through the law firm of XXXX who state they are the attorney for the " Plaintiff '' - US Bank NA, as Trustee etc. A Certificate of Merit ( Attached ) was proffered to the Court signed by XXXX XXXX, XXXX. attesting to a 'reasonable basis for the commencement ' of the action. Clearly there is a disconnect. It is patently obvious that the role of the Plaintiff US Bank, as Trustee, is being misrepresented, as US Bank, as Trustee, has admitted that they have no authority or capacity to begin such a proceeding. Further in a brazen and egregious attempt to mislead the court, the law firm filed a Lost Note Affidavit from a party with no personal knowledge of the particulars of the lost note. A party by the name of XXXX XXXX XXXX of XXXX XXXX XXXX XXXX, states the note was lost eleven and a half years ago on XXXX XXXX, XXXX, 23 days after the alleged Note Date of XXXX XXXX, XXXX. If the note was lost it could not have been endorsed into the Trust as required by law. The Trust is stated to be the owner of the mortgage and note.

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