Consumer complaint received 2024-08-02
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Trying to communicate with the company to fix an issue with the application process
Company: SELECT PORTFOLIO SERVICING, INC. (IL)

I had a XXXX forbearance on my mortgage, which upon expiry, we had effortlessly performed a loan modification for my home loan to keep my payments low. During this loan modification, nobody at SPS had bothered to review my negative escrow balance and put it back into the loan balance with this modification nor even told me such an option existed. I then, later on, when I determined the escrow was negative and my monthly payments continued to grow beyond my ability to pay my monthly payment, attempted to modify my mortgage again to put the negative escrow balance into the loan which would allow me to make the payments I can afford while making SPS whole in terms of the negative escrow balance. This first application was cancelled due to me not being able to respond to a random inquiry from SPS within 30 days of receiving it. I then, at the direction of SPS, submitted a secondary application for a loan modification and provided SPS with all the same documents they requested with my first loan modification. SPS then erroneously and apparently maliciously cancelled my second application for a loan modification due to a fault of their employees not bothering to read documents I had submitted to SPS as part of this process. During this process, I provided SPS with all the requested documents and the only outstanding item was a copy of all the miscellaneous expenses for my business. Throughout this process, I would receive generic 'Missing Information ' letters that did not give me any concrete information. Every time I received such a letter, I would have to call SPS, get somebody on the phone and get them to explain to me what exactly it is that is missing that SPS requires from me to continue my application for my loan modification. After my relationship XXXX notified me that SPS was missing my miscellaneous business expenses, I sent those over to SPS via fax on XX/XX/year> but did not itemize them. After receiving another generic 'Missing Information Letter ' i contacted my relationship XXXX again who advised me that the miscellaneous business expenses I provided were adequate but needed to be itemized and that I could itemize them in the memo field and then fax them over. I did exactly that and faxed the itemized version of my miscellaneous business expenses ( in the memo field ) on XX/XX/year>. After receiving yet another missing information letter, I sent another fax to SPS on XX/XX/year> with a letter that explained all this and asking for a clarification on what information was supposedly missing as the missing information letter did not explain anything. I did not receive a response to this inquiry until XX/XX/year> when SPS replied that the miscellaneous business expenses I provided needed to be itemized. This means nobody ever fully read my fax sent on XX/XX/year> which explained exactly when and how I sent the itemized business expenses to SPS. The reply from SPS occurred at XX/XX/year> and on XX/XX/year>, without having even 20 days to reply, SPS automatically closed my second application for a loan modification due to non-responsiveness when only 17 days had passed since the last communication in regards to my application for a loan modification. On XX/XX/year> I sent another letter regarding my account in which I detailed all the very same information I provided in this complaint, including that the application should never have been closed as it has only been 17 days since SPS replied to me, that the only document that SPS was waiting for was already faxed to them on XX/XX/year> as well as copies of my faxes sent to them during these times, and proof that they were delivered to their fax number with exact times and dates. I requested that the withdrawal of my application for a loan modification be reverted and brought back to an active status as all the documents were provided and none were outstanding. A reply from SPS in regards to this issue was provided to me on XX/XX/year> in which they explained that the application was withdrawn because it was incomplete with no activity for over 30 days and that the document that they still required at this time was 'proof of income documents ' specifically mentioning in this letter that they received my fax that included miscellaneous expenses for my business but that they needed to be itemized. This document from SPS serves as additional proof of two separate lies. First, the latest activity on my application for a loan modification was only 17 days old at the time my application was withdrawn, not XXXX. SPS is choosing to not count their response to my letter about my application as an 'activity ' in this sense and instead simply chose to take the time and date of my last letter to them as the latest activity when in reality SPS can, by law, take up to XXXX  days to respond to any inquiry I send them. This means SPS, in affect, believes they can cancel 99 % of their loan modification applications by simply waiting until the XXXX day to reply to an inquiry and then immediately withdrawing such an application the next day because the mortgagee has not responded within XXXX  days when in reality they barely even had a day to respond. Activity is activity regardless of which side it occurs or does not occur from. If I send a letter to SPS about clarification for something they sent, they can take XXXX  days to respond and when they respond, I should now have another XXXX  days to respond to them. I replied back again to SPS via email and fax to both their regular and Obdusman departments on XX/XX/year> in which I clearly and in giant letters specified that 'THE ITEMIZED MISCELLANEOUS EXPENSES WERE ALREADY FAXED TO SPS ON XX/XX/year> ' and that I am disputing the withdrawal of my application for a loan modification as the outstanding document represented in their latest letter was already provided to them in XXXX of XXXX. I also ask that someone competent review all my communications with SPS, including the fax I sent to them on XX/XX/year>. I specifically mention in my letter that I may be forced to file a CFBP complaint in regards to this blatant ignorance and that this issue should be reviewed immediately and rectified. In this letter, I also provide them with yet another copy of the fax I sent on XX/XX/year> ( with giant arrows pointing to the memo field showing the expenses were itemized ). As of XX/XX/year>, I have not received ANY response to my inquiry from XX/XX/year> and the SPS representative that I spoke to today ( XX/XX/year> ) has told me that she believes a response is still pending and that I should give it another week. It has now been over XXXX  days since I sent in my latest fax to SPS as well as emails and I have not received a response. This goes to show yet again that SPS can blatantly disobey the XXXX  day reply period and ignore everything I send while at the same time claiming XXXX  days of unresponsiveness to a generic reply from the counts as XXXX  days of unresponsiveness to me so they can just withdraw my application and forget I ever submitted one. Rather than waiting for someone at SPS to potentially once again ignore everything I say, I hereby request that the CFPB force SPS to resolve this matter immediately and bring back and process my COMPLETED application for a loan modification as I will not be filling out this series of documents and providing them with another XXXX pages of bank statements and tax documents for something that was caused entirely by the incompetence and ignorance of their own employees.