Consumer complaint received 2020-04-07
Company: Specialized Loan Servicing Holdings LLC
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Investigation took more than 30 days

Complaint:
STATEMENT OF EVENTS RE : XXXX XXXX XXXX XXXX AND SPECIALIZED LOAN SERVICING After 15 years with XXXX XXXX as our loan servicer, they sold control to a company called Specialized Loan Servicing who assumed our loan on XX/XX/XXXX. We thought the payment transition went smoothly until XXXX, when they apparently did an escrow account review and predicted that we needed more money for our escrow. They DID NOT ( and have no proof of ) notify us, even though they had all of our contact information. We had an automatic, electronic payment going to them monthly, but because of the higher minimum payment, our loan payments looked as though they were late for the months of XXXX and XXXX of XXXX. They were not late, but because the payment amount did not satisfy the minimum due they held the money until the next months payment came and then paid the previous month. When we noticed this due to past due notices, we immediately called and tried to resolve this on XX/XX/XXXX. We adjusted the payment to the correct amount and paid any late fees that were due. On XX/XX/XXXX we contacted SLS again to inquire about refinancing options and the principle balance and were told that with the late payments showing that we would not qualify for a refinance or a better rate. We contacted a few other mortgage companies, with the same answer. On XX/XX/XXXX we spent more than 3 hours on the phone with a supervisor, XXXX, going through every transaction and she agreed that the lack of communication and way in which payments were being applied, coupled with the one time grace late payment that they grant every customer, that the late payments for XXXX and XXXX would be removed by the consumer escalation department. That department called on XX/XX/XXXX and disagreed and said that their reporting of the situation was correct and they would not remove the report to the credit bureaus. Then on XX/XX/XXXX, after having gone through all of the numbers with XXXX and realizing that even with the increase in the escrow amount there still wouldnt be enough money to satisfy the taxes and insurance that would be due the following spring, we asked that an additional {$32.00} be added to the monthly payment of {$2300.00} to ensure that there would be enough money to pay what was needed and that would be effective XX/XX/XXXX until further notice. On XXXX and XX/XX/XXXX we ( in all of the confusion of trying to straighten out the payment ) made two payments, making us a month ahead. On XX/XX/XXXX we again contacted SLS to find out that it was decided by the consumer escalation department that they would not reverse anything, we called because they never contacted us with their decision. On XX/XX/XXXX we contacted the credit bureaus and asked them to open an investigation to contest the disparaging marks on our credit. On XX/XX/XXXX we received a refund for overpayment of our escrow in the amount of {$440.00}, of which less than {$100.00} was from the additional escrow of {$32.00} that we requested be taken out to ensure there was no shortage. We contacted SLS to ask again that they clearly miscalculated our escrow to such a degree that there was a significant surplus paid and that it was the root of all of this situation. Attached to the refund of the overpayment of escrow was the estimated new amount due to satisfy taxes insurance for this next year, which again has changed. At least we now know what it will be and have now on XX/XX/XXXX have removed the additional escrow amount of {$32.00} effective XX/XX/XXXX. We also asked them to resubmit the request for the consumer escalation department to review this situation in hopes of resolving the late notations on our credit. Also, now in XXXX we are submitting our history of payments and the statement from SLS that we believe proves that this was a communication error and respectfully ask the credit bureaus to remove the reports of 30 day late payments for XXXX and XXXX of XXXX. We feel that this is deceptive and incorrect business practice to trap us as we are not able to refinance with them or anyone else until this is resolved once and for all. We dont want anyone else to get sucked into this trap, so we ask that you ( Consumer Financial Protection Bureau ) publish this complaint for their sake.

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