Consumer complaint received 2016-06-24
Company: SELECT PORTFOLIO SERVICING, INC.
State: GA
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account

Complaint:
XXXX XXXX. XXXX obtained a mortgage with XXXX XXXX XXXX, filed in the XXXX County XXXX Deed Records, Book XXXX, page XXXX, on XXXX XXXX, XXXX. 
The mortgage was paid in full under settlement order by USDOJ to XXXX XXXX XXXX ( XXXX ) for frauds done to XXXX XXXX. XXXX exposed in the XXXX County Deed Records, Book XXXX, page XXXX and XXXX, where XXXX had made loans to XXXX XXXX XXXX of XXXX, XXXX upon properties owned by XXXX XXXX. XXXX and his family. 
On XXXX XXXX, XXXX, Counsel for XXXX, XXXX XXXX XXXX of XXXX XXXX XXXX, stated that USDOJ was intervening in the matters ( and, in fact, had already intervened and made his client XXXX pay off the distressed loans ) and making XXXX pay of the distressed loans caused by XXXX 's criminal activity with XXXX XXXX XXXX, " To be very frank, there are, the fact is we also have a claim, if it ever comes, back against XXXX. I mean, if Justice intervenes, if there is any beneficiary of what the bank did, it was XXXX. And XXXX has all his loan documents there 's a guarantee, we have recourse against him if there is any loss. '' This loan was one of those loans Paid Off under the LEGAL SETTLEMENT by USDOJ. 
The paid off original Note was given to USDOJ ( or other supervising US agency ) but the mortgage was never cancelled as required by XXXX Law, OCGA 44-14-3. 
A fraudulent assignment was then recorded to XXXX XXXX XXXX, XXXX in the XXXX County Deed Records, Book XXXX, page XXXX, on XXXX XXXX, XXXX in order to force XXXX XXXX. XXXX ( a man over the age of XXXX ) to continue paying on a loan that was no longer existing. 
XXXX XXXX XXXX, XXXX must produce the documents evidencing their purchase of this loan. 
In XXXX an entity representing itself as XXXX attempted to foreclose the property. 
A complaint was made to the Independent Foreclosure Review. 
Independent Foreclosure Review responded that the attempted foreclosure was a fraud and the entity appearing to be XXXX ceased foreclosure because there was no loan to foreclose. 

In the process of this unfolding, the home was destroyed by flooding in XXXX caused by the City of XXXX ' negligence in failing to required hydrology studies for new construction as required by Federal Law. 

After the flooding occurred it was found that the flood certification for the original lender in XXXX had been falsified by XXXX XXXX XXXX. In XX/XX/XXXX XXXX stated they had settled their issues with the lender, meaning, they either paid off any existing loan ( or fraudulent representation thereof ) or there was no longer any loan for them to have any liability. 

On XXXX/XXXX/XXXX, XXXX XXXX was notified that another fraudulent transfer of the paid off mortgage was being done to Select Portfolio Servicing, XXXX. XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX. 

These fake mortgage servicers need to provide proof of their loan with XXXX XXXX. XXXX, which has already been determined to be paid off by Independent Foreclosure Review and the transfers fraudulent. 

XXXX XXXX expects CFPB to initiate prosecutions for fraud and theft and to order the cancellation of the recorded mortgage as required by XXXX Law, which USDOJ should have followed through with in XXXX rather than trusting that the target of their investigation, XXXX, would do the right thing and file the cancellations after paying off the loans in the ordered " Legal Settlement ''.

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