Consumer complaint received 2022-08-16
Company: Specialized Loan Servicing Holdings LLC
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
Dear CFPB : My second mortgage loan is currently being serviced by Specialized Loan Servicing. The account is currently delinquent due to hardships relating to the Covid 19 pandemic. SLS is refusing to offer loss mitigation assistance or process a loan modification. The will not take in a standard loss mitigation package and process it accordingly. Moreover they are demanding that {$40000.00} be paid as a down payment in order to avoid foreclosure proceedings. SLS is in violation of many CFPB laws relating to loss mitigation and loan modifications, primarily CFPB 1024.41. The rules listed below clarify the obligations of SLS ( see below ).

1024.41 Loss mitigation procedures. 
CFPB Rule 41 ( b ) ( 3 ) 1. Foreclosure sale not scheduled. If no foreclosure sale has been scheduled as of the date that a complete loss mitigation application is received, the application is considered to have been received more than 90 days before any foreclosure sale. 
2. Foreclosure sale re-scheduled. The protections under 1024.41 that have been determined to apply to a borrower pursuant to 1024.41 ( b ) ( 3 ) remain in effect thereafter, even if a foreclosure sale is later scheduled or rescheduled.

CFPB Rule 41 ( b ) ( 1 ) A servicer has flexibility to establish its own application requirements and to decide the type and amount of information it will require from borrowers applying for loss mitigation options. In the course of gathering documents and information from a borrower to complete a loss mitigation application, a servicer may stop collecting documents and information for a particular loss mitigation option after receiving information confirming that, pursuant to any requirements established by the owner or assignee of the borrower 's mortgage loan, the borrower is ineligible for that option. A servicer may not stop collecting documents and information for any loss mitigation option based solely upon the borrower 's stated preference but may stop collecting documents and information for any loss mitigation option based on the borrower 's stated preference in conjunction with other information, as prescribed by any requirements established by the owner or assignee. A servicer must continue to exercise reasonable diligence to obtain documents and information from the borrower that the servicer requires to evaluate the borrower as to all other loss mitigation options available to the borrower 1024.41 ( c ) ( 4 ) ( ii ) ( B ) ( 4 ) Denial of loan modification options. If a borrower 's complete loss mitigation application is denied for any trial or permanent loan modification option available to the borrower pursuant to paragraph ( c ) of this section, a servicer shall state in the notice sent to the borrower pursuant to paragraph ( c ) ( 1 ) ( ii ) of this section the specific reason or reasons for the servicer 's determination for each such trial or permanent loan modification option and, if applicable, that the borrower was not evaluated on other criteria. 

Furthermore, SLS has not provided a full accounting breakdown to prove up the validity of the debt. I have requested this information on numerous occasions via qualified written request XXXX The XXXX request has issues raised regarding deed and title transfers that have not XXXX been responded too. Per 12 CFR 1024.36, SLS is required to respond based on HUD law. 
12 CFR 1024.36 - Requests for information. 
( a ) Information request. A servicer shall comply with the requirements of this section for any written request for information from a borrower that includes the name of the borrower, information that enables the servicer to identify the borrower 's mortgage loan account, and states the information the borrower is requesting with respect to the borrower 's mortgage loan. A request on a payment coupon or other payment form supplied by the servicer need not be treated by the servicer as a request for information. A request for a payoff balance need not be treated by the servicer as a request for information. A qualified written request that requests information relating to the servicing of the mortgage loan is a request for information for purposes of this section, and a servicer must comply with all requirements applicable to a request for information with respect to such qualified written request. 
( ii ) Extension of time limit. For requests for information governed by the time limit set forth in paragraph ( d ) ( 2 ) ( i ) ( B ) of this section, a servicer may extend the time period for responding by an additional 15 days ( excluding legal public holidays, XXXX, and XXXX XXXX ) if, before the end of the 30-day period, the servicer notifies the borrower of the extension and the reasons for the extension in writing. A servicer may not extend the time period for requests for information governed by paragraph ( d ) ( 2 ) ( i ) ( A ) of this section. 

Based on the information submitted within, I am seeking your assistance on this matter. You can reach me direct at XXXX or XXXX.

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