Consumer complaint received 2016-07-30
Company: SELECT PORTFOLIO SERVICING, INC.
State: MN
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Application, originator, mortgage broker

Complaint:
XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX XXXX, XXXX XXXX Headquarters address Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX XXXX Dear XXXX XXXX : REMEDY I have struggled with an aggressive mortgage underwriting by XXXX for 11 years. I am XXXX today and can no longer make the payments. I would like a return of my {$20000.00} down payment and interest In XX/XX/XXXX I was aggressively marketed by XXXX for mortgage financing. 
XXXX misrepresented the following : The mortgage was uneconomic, monthly taxes exceed monthly principal amortization XXXX encouraged me to take out a second mortgage " as a new norm ''. 
A XXXX Modification required a principal deferral equivalent to the second mortgage as the first underwriting. This modification did not bring financial relief. and appears to have been design to maintain the original high underwriting risk and correct the misrepresentation and excessive risk. 

BACKGROUND When I purchased my home at XXXX XXXX XXXX XXXX, XXXX I was residing in XXXX XXXX and had lost touch with the changes in the US mortgage market. I had been out the country during the mortgage boom. I left the country in XX/XX/XXXX. 

I purchase my current home in XX/XX/XXXX. Today is the 11th year of ownership After a cursory review, it is revealed that if I had received a traditional mortgage underwriting the amortized balance would be {$730000.00} which is my current principal payment base less a {$150000.00} principal deferred balance. 

My monthly principal payment would be {$1800.00}. The interest would be {$3400.00}. 
It is quite apparent that adding my property tax at an estimate of {$2400.00} a month. 
Would have made it impossible to qualify for the XXXX mortgage. 

This would have made the " all in '' monthly mortgage payment would be {$7600.00} compared to {$5100.00} today. 

Another factoring evidencing the complex representations is the fact the monthly principal payment of the mortgage is less than the monthly property taxes. 
If fully disclosed I would have seen that the mortgage was Uneconomic. 

At the time of the original underwriting I was encourage to execute a second mortgage and minimize the cash out lay. This debt has since been settled. By coincidence the second mortgage is the same amount as the current deferred principal balance, {$150000.00}. 

It appears that the XXXX modification was designed in the same reckless aggressive spirit as the original XXXX transaction. 

I have paid over {$530000.00} in interest since XXXX on a {$730000.00} principal balance. 
I have received no relief from my XXXX XXXX XXXX. 



Sincerely, XXXX XXXX CC : XXXX XXXX XXXX Select Portfolio Servicing XXXX. XXXX XXXX XXXX XXXX XXXX, XXXX XXXX APPENDIX Mortgage Amount {$910000.00} Mortgage term Mortgage term in years XXXX Or Mortgage term Term in months XXXX Interest rate Interest rate per year % 5.500 TODAY 'S RATES Mortgage start date XXXX XXXX XXXX CALCULATE {$5100.00} MONTHLY PAYMENTS Interest Principal Total Principal Paid {$910000.00} or 48.92 % of payments made. 



DATE PMT PRIN INT TOTAL INT BALANCE XXXX XXXX {$5100.00} {$990.00} {$4100.00} {$4100.00} {$900000.00} XXXX XXXX {$5100.00} {$1000.00} {$4100.00} {$8300.00} {$900000.00} XXXX XXXX {$5100.00} {$1000.00} {$4100.00} {$12000.00} {$900000.00} XXXX XXXX {$5100.00} {$1000.00} {$4100.00} {$16000.00} {$900000.00} XXXX XXXX {$5100.00} {$1000.00} {$4100.00} {$20000.00} {$900000.00} XXXX XXXX {$5100.00} {$1000.00} {$4100.00} {$24000.00} {$900000.00} XXXX. XXXX {$5100.00} {$1000.00} {$4100.00} {$29000.00} {$900000.00} XXXX XXXX {$5100.00} {$1000.00} {$4100.00} {$33000.00} {$900000.00} XXXX XXXX {$5100.00} {$1000.00} {$4100.00} {$37000.00} {$900000.00} XXXX XXXX {$5100.00} {$1000.00} {$4100.00} {$41000.00} {$890000.00} XXXX XXXX {$5100.00} {$1000.00} {$4100.00} {$45000.00} {$890000.00} XXXX XXXX {$5100.00}

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