Consumer complaint received 2018-04-20
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: SELECT PORTFOLIO SERVICING, INC. (CA)

We executed a modification in XX/XX/XXXX with XXXX XXXX and signed and notarized modification documents and sent them back on XX/XX/XXXX when they were due. Later we received a call from XXXX  XXXX saying they never received the documents and that they were sending us a new set of documents. We were required to send a cashier 's check for {$3000.00} with the new set of documents which had to be returned by XX/XX/XXXX. The prior documents dated XX/XX/XXXX and notarized and returned by us to XXXX   XXXX did not require a {$3000.00} cashier 's check to be sent with the documents. 
According to our records, the payments were made to XXXX XXXX to XX/XX/XXXX. The XX/XX/XXXX payment was returned from my XXXX XXXX account. We replaced that check for {$6400.00} with a cashier 's check. In addition, XXXX   XXXX charged my mortgage account the amount of {$3400.00} for late charges, administrative and corporate fees, and interest which amounted to {$9500.00}. My mortgage account was capitalized in the amount of {$27000.00} in the new modification documents rather than {$18.00}, XXXX according to the XX/XX/XXXX modification documents. This was an increase of {$9500.00}. 
In addition there were two payments as notated on the XXXX Transaction Payment History that were not credited to my mortgage account which amounted to {$6200.00}. 
We paid all insurance policy payments prior to XX/XX/XXXX when our mortgage was impounded for tax and insurance payments. 
However in reviewing the escrow charges for that time period, we were charged {$7400.00} by XXXX XXXX for insurance premiums prior to XX/XX/XXXX when we were making our insurance payments. Therefore I am disputing this charge that was made on my mortgage account prior to XX/XX/XXXX as well as other excessive escrow charges. 
There is a payment for {$7300.00} made on XX/XX/XXXX, which was credited to the XX/XX/XXXX payment when in fact we made two more payments to the account as indicated by checks received, the documents of which are enclosed with this letter. 
Therefore my mortgage account is owed {$12000.00} for two payments not credited to the payment history plus applicable interest and penalties. My account is also owed {$7300.00} made on XX/XX/XXXX. Please note cf # XXXX on the payment history In addition my account was capitalized {$86000.00} on XX/XX/XXXX for loan maintenance/ modification expenses. Of this amount {$48000.00} was for accrued interest changes and late charges and $ XXXXOf the amount of {$43000.00} charged to my mortgage account, I am disputing the amount of {$27000.00} which was capitalized into my mortgage balance. Of the amount of {$48000.00} for accrued interest and penalties, I am disputing the amount of {$26000.00} which is owed to my mortgage account. 
I have been disputing this issue with XXXX  XXXX, XXXX and now SPS since XX/XX/XXXX when the original bank errors were made. I am including documents to substantiate my claim. 
SPS is maintaining that I signed a modification agreement dated XX/XX/XXXX which brought the account current and therefore any payments I made prior to that date would not be considered or could not be credited toward any missing payments. 
I am disputing this fact because bank errors were made on my mortgage account which were not corrected despite my addressing this issue since XX/XX/XXXX. 
On the XXXX Payment Transaction History, there is a history of misapplied payments and " suspense '' accounts. I understand it is illegal for banks to hold " suspense '' payments past the specified payment history. 
XXXX XXXX, XXXX and SPS have capitalized my mortgage account in the amount of {$170000.00} since the inception of the mortgage in XX/XX/XXXX. Of this amount, {$59000.00} was added to my loan for escrow and tax expenses and {$110000.00} was added to the principal loan balance since XX/XX/XXXX for accrued interest and penalties, Of this amount I am disputing as per accounts stated per the XXXX Payment Transaction History {$100000.00} as being excessive capitalization to my mortgage account.