Consumer complaint received 2016-12-28
Company: SELECT PORTFOLIO SERVICING, INC.
State: GA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
XX/XX/2016 XXXX, GA XXXX Director XXXX Consumer Financial Protection Bureau XXXX, IA XXXX Headquarters address Consumer Financial Protection Bureau XXXX Dear XXXX ; Recommendation : Legal Action Background Select Portfolio Services has responded to my grievance. The responses are general and superficial. SPS does no have the capacity and or will to address individual client complaints and to resolve injustices. 

There is a strong implication that this problem may warrant Class Action Litigation. 

First, I suspect that this economic and financial negligence is systemic. During the Great Recession numerous homes declined in price. Local tax authorities and Mortgage Servicers did adjust the tax escrows and actual payments to the house value decline. 

Further as in the case of SPS when the home was modified this was an act of evidencing an acknowledging that the home value was less than the price at origination. Hence, a tax adjustment was required. A tax adjustment in many cases such as mine would have saved the American 's homes FACT : SPS was notified that XXXX County taxes resulted in mortgage modifications becoming uneconomic. The taxes did not reflect the home market value. 

Negligence The negligence was a modification focus total mortgage debt and not government assistance and not cash flow. 

Modification ( Incomplete and Fraud in Modification ) In fact, it could be argued that less financial forbearance would have been required if the mortgage services had a tax adjustment strategy. The failure of mortgage banks to have a total risk strategy cost US taxes payers and the mortgage servicers shareholders. 

The charge is poor governance, financial negligence, and tax fraud. 

Governance It can be argued the interest earned while holding the tax escrow conflicted the mortgage servicer. This poor risk management increased foreclosures, Decreased mortgage servicing fees and income for shareholders In the case of SPS and many mortgage servicers when notified that the modification had made the mortgage uneconomic. A professional response by SPS would have been to contact the tax authorities and negotiate loss mitigation. This is because the homeowner was losing the home due to excess tax payments and not the principal and interest payment. Modification is not a modification without a tax payment adjustment or modification to market value. The modification was fraud. 

Further, SPS and other mortgage banks were negligent in forwarding or paying the escrowed taxes to the county or other tax authority when they knew that the taxes were excessive with or without a consumer 's complaint. 

SPS and other mortgage denied negligence and would like to pass the liability to the local Authorities. Many local authorities have imminent domain and a statutory limited liability. This is why SPS and other mortgages services must be included in the litigation. 


Sincerely, XXXX

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