Consumer complaint received 2024-11-19
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: SELECT PORTFOLIO SERVICING, INC. (CA)

XXXXPrint complaint Closed Submitted Status Submitted to the CFPB on XX/XX/XXXX Product Mortgage Issue Trouble during payment process We received your complaint. Thank you. 
We will review your complaint. Depending on what we find, we will typically : Send your complaint to the company for a response ; or Send your complaint to another state or federal agency, or help you get in touch with your state or local consumer protection office ; or Let you know if we need more information to continue our work. 
YOUR COMPLAINT This is a follow-up to my previous complaint which you closed prematurely. Complaint No. XXXX. You said I had 60 days to respond, and you did not give me 60 days, therefore I have opened this new complaint to get help from you in addressing my mortgage servicers continued abuse, harassment and discrimination. What has happened is that SPS is trying to get too much money from me for an escrow impound account in violation of the modification contract that was provided under the covid-19 mortgage relief law. Because SPS is now stuck with a low interest rate on the mortgage PER THE CONTRACT, they are using a demand for an escrow impound account as an excuse to force me to pay {$400.00} more per month than I am supposed to pay per the contract claiming - falsely - that it is for 3 months of insurance and taxes. WHICH IS NOT PART OF THE CONTRACT. They violated and are continuing to violate the contract. The contract does not require me to keep an escrow account with them at all. Therefore, I have paid my property taxes already, I am now paying my home owners ' insurance directly- not through SPS. There is absolutely no reason for SPS to require me to deposit money in an escrow account with them. I have continued to pay the mortgage ( principal and interest only ) per the contract BUT NOT the amount ( three months of property tax and insurance ) they are calling an escrow impound account because they are not entitled to that. They are a servicing company - not a bank. They are not required to follow any banking rules because they are not a bank. Unless you do something about this, they will use this false claim of a need for an escrow impound account to attempt to foreclose on my home- which I haev owned since XXXX. Attached are the documents to support this complaint and complaint XXXX. 

Attachments XXXX Scan - part XXXX ( XXXX MB ) XXXX Scan - part XXXX ( XXXX MB ) XXXX Scan - part XXXX ( XXXX MB ) XXXX Scan - part XXXX ( XXXX MB ) View full complaint Sent to company Status Sent to company on XX/XX/XXXX We've sent your complaint to the company, and we will let you know when they respond. 

Their response should include the steps they took, or will take, to address your complaint. 

Companies generally respond in 15 days. In some cases, the company will let you know their response is in progress and provide a final response in 60 days. 

Company still working Status Company response is in progress as of XX/XX/XXXX The company has responded that it is still working on your issue In some cases, companies need more time to respond. You should receive a final response within 60 days from the date we sent your complaint to the company. 

COMPANY 'S INTERIM RESPONSE We are in the process of completing our research to address your concerns and request additional time to finalize our response. Thank you. 
Company responded Status Company responded on XX/XX/XXXX Response Type Closed with explanation Company 's Response Payments/ Escrow In the inquiry, you questioned the payment increase due to escrow shortage. In the enclosed Annual Escrow Account Disclosure Statement dated XX/XX/XXXX, the escrow shortage in the amount of {$1000.00} was based on three factors. First, the enclosed Annual Escrow Account Disclosure Statement dated XX/XX/XXXX, had divided the previous shortage of {$740.00} over 24 months, so only half of the previous shortage was satisfied at the time of the Annual Escrow Account Disclosure Statement dated XX/XX/XXXX. The escrow shortage was {$740.00}, which means the remaining shortage in XXXX was {$370.00}. Second, the tax disbursements increased from {$2300.00} to {$2400.00} annually, and the insurance increased from {$740.00} to {$770.00} annually, which was an annual increase of {$76.00} or a monthly increase of {$6.00}. Thirdly, we collected for a two-month escrow reserve, which is equal to XXXX monthly payments. These three factors increased the escrow shortage to {$1000.00} effective XX/XX/XXXX. This was divided over 12 months at {$83.00} per payment. The enclosed Annual Escrow Account Disclosure Statement dated XX/XX/XXXX, provided additional shortages as a result of increases in taxes and insurance. The taxes increased from {$2400.00} to {$2400.00}. The insurance increased from {$770.00} to {$1800.00}. This was a total annual increase of {$1000.00} or a monthly increase of {$88.00} for the base escrow amount. These increases resulted in a higher escrow reserve requirement, which was due to the escrow reserve requirement being equal to two monthly payments, as well as additional shortage due to the unexpected increases. The total shortage was {$3400.00}, which was divided over 12 months at {$290.00} per payment. At your request, SPS has removed the escrow account. There is a negative escrow balance of {$3100.00}, which will still be collected. Once this amount is repaid, SPS will continue to collect the payments at the principal and interest amount of {$980.00}. Please see the enclosed Escrow Closing Notice dated XX/XX/XXXX, which advised this is a 10-day process. You requested we accept the principal and interest only payments. We have enclosed the SPS Transaction History to show application of payments to the account. Depending on an accounts status, partial payments are treated as unapplied funds and held separately until we receive enough funds for a full regular payment. At that time, payments will be credited to the account. Please see the monthly statement for the unapplied funds balance on the account. Allegations In the inquiry, you raised several claims regarding abuse, harassment, and violation of contract. We reviewed the claims and found no merit to the allegations. SPS is confident that the servicing of the account by SPS has been compliant with all applicable state and federal regulations. Discrimination In the inquiry, you made general discrimination allegations. SPS does not use race, religion, or other protected bases in our servicing practices, and we deny allegations of servicing discrimination. In response to the concerns you expressed regarding your interaction with SPS, we regret that you feel that our service has not met your expectations. As of the date of this letter, the account is due for XX/XX/XXXX. 
Attachments CFPB XXXX ( XXXX MB ) Feedback provided Status Feedback provided on XX/XX/XXXX Your feedback The companys response addressed all of my issues Yes I understand the companys response to my complaint Yes The company did what they said they would do with my complaint No ADDITIONAL COMMENTS After getting an accounting and information previously held back to us, we understand that SPS has given us the information we need to make an informed analysis. On XX/XX/XXXX, the day SPS submited their response to our complaint, we recorded and date stamped our conversation with a customer care responder requesting we reinstate the escrow, impound account. the customer care responder pulled our account and reinstated the escrow/impound accout. Our escrow account is reinstated as recorded during the conversation. SPS representative re instated our escrow and inpound account stateing it would take accounting 20 days to calculate our monthly mortgage and escrow/impond account. As per the contract all the contract holds and clauses and conditions remain unchanged for any reason our sole pupous is to obtain truthfull and accurate accountiong of our property and our mortgage and escrow/impound account. After the accounting we will get our XXXX mortgage due and paid upon the new accounting for our property. All contract clauses and conditions remain in place as stated by SPS, except we chose to reinstate the escrow/impond account as we did on XXXX XXXX based on true and correct information that we did not previously have. XXXX XXXX XXXX & XXXX XXXX XXXX XXXX happens now? 
The complaint process is complete and your complaint is now closed. 

We have taken the following additional actions on your complaint : We added your complaint to the CFPBs Consumer Complaint Database. 
Your feedback, and feedback from others, helps us understand how companies are addressing concerns raised by consumers in their complaints. We will also share your feedback with the company. 
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We appreciate your participation in the complaint process and your feedback on the companys response. Both are important to us and consumers who may have similar issues and concerns. 

Closed The CFPB has closed your complaint. 
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US Flag An official website of the United States Governmen. Again this month XX/XX/XXXX SPS has tripled our inpound account and projecting escrow balances estemates that make our monthly payments over the original contract agreement .SPS reported negative payment history to our detrament in applying for credit. SPS reported us 2 months late in our payments when in fact we were annd are current. Please be advised of this treatment to consumers. XXXXXXXX XXXX XXXX XXXX XXXX XXXX