Consumer complaint received 2020-05-20
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: SELECT PORTFOLIO SERVICING, INC. (WA)

We had originated a refinanced mortgage through XXXX XXXX XXXX  in XXXX of XXXX. Though it was a 30 year mortgage, there were several benefits detailed in the contract such as automatic bi-weekly payments, additional principle added to each bi-weekly payment, and having all payments applied to principle the day it is received that actually has the entire mortgage paid off in just 14 1/2 years. They even provided a detailed payment schedule showing every single bi-weekly payment, the amount applied to interest, and the remaining principle balance - all 377 of them over the 14 1/2 years. As XXXX merged with XXXX we never had any issues with them drawing or applying the payments and no changes other than the escrow portion that only paid taxes. Through the Spring of XXXX we received several notices that Select Portfolio Servicing ( SPS ) would be taking over the servicing of our mortgage and many assurances that there would be no changes to our original mortgage. While there was a slight delay between the last payment drawn by XXXX on XX/XX/XXXX and what should have been the first payment drawn by SPS on XX/XX/XXXX they did draw it on XX/XX/XXXX followed by the regularly scheduled payment on XX/XX/XXXX. Unfortunately, we have since found that they do no apply the payment when it is received, but rather have been holding onto payments for 14-28 days before applying. As our mortgage has daily simple interest, every day they hold our payments in limbo, the interest portion grows and thus less money is eventually applied to principle - extending our mortgage and increasing the amount of interest we pay. As our contract specifically states that all payments will be applied the day it is received, their actions can only be considered theft and/or fraud. We also had an issue recently when they failed to draw the regular bi-weekly payment on XX/XX/XXXX so I called on XX/XX/XXXX and even though the service agent could not tell me why the payment never ran or why my payments were being held and not applied correctly he assured me that the matter had been send to 'cashiering ' and the payment would run by morning. The payment did not run by morning or even the next day so I contacted our attorney and collected all the documents for her to present with a letter requesting they rectify their many errors. They did run the regular bi-weekly payment on XX/XX/XXXX but still have not collected the XX/XX/XXXX payment or either of the 2 since - XX/XX/XXXX and XX/XX/XXXX. So, they have missed 3 of 4 ( and counting ) bi-weekly payments. My account online does not show any late fees or penalties yet but it shows in red payment is due on the account XX/XX/XXXX. They have not responded to my attorney, but I did receive a letter via USPS this week that they had received the correspondence but as it was received at their 'dispute mailbox ' they have forwarded it another unnamed department and since my letter raising several issues with their servicing of my account " did not raise an issue with the servicing of your account '' they consider the matter closed. As my attorney prepares our next actions, she did suggest I file a complaint here and I will also do the same with the Washington Attorney General 's office and the XXXX XXXX XXXX.