Consumer complaint received 2024-03-02
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: SELECT PORTFOLIO SERVICING, INC. (MD)

Facts : On XXXX XXXX, XXXX I mailed XXXX checks, numbers XXXX and XXXX ; Check number XXXX was for the amount {$6500.00} which was annotated for our XXXX, XXXX mortgage payment, and number XXXX was for the amount {$1500.00} which was annotated to be applied to the escrow shortfall. These XXXX checks were delivered by USPS ( certified mail ) at XXXX AM to the Front Desk / Reception / Mail Room in XXXX XXXX XXXX, UT XXXX ; they were addressed to Select Portfolio Servicing , Inc . 
Attn. XXXX XXXX, XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, UT XXXX. 

Prior to that, I had received a letter, dated XXXX XXXX, XXXX, that indicated that Select Portfolio Servicing ( SPS ) had conducted the annual analysis of the escrow account held by SPS for payment of property taxes and insurance. Their analysis projected a shortfall in XXXX, that they were permitted by law to hold a higher balance than was projected. I was invited by that letter to make an additional payment to the escrow account to reduce that projected shortfall, which I did in the amount of {$1500.00} ( see above ). 

SPS converted both checks to ACH transactions ( as permitted ), those transactions were posted on my checking account on XXXX XXXX, XXXX. 

The XXXX ( XXXX ) statement shows the required payment for XX/XX/XXXX : Principal : {$1800.00} Interest {$2000.00} Escrow : {$850.00} Total : {$4700.00} The XXXX payment ( Check # XXXX ) was made to the amount {$6500.00}, to be applied ( I do not have a photo copy of the chit I filled out, didnt think I need XXXX ) : Principal : {$1800.00} Interest : {$2000.00} Escrow : {$850.00} Additional Principal : {$1700.00} Total : {$6500.00} According to both my records and SPS accounting records XXXX as shown on the Statement dated XXXX XX/XX/XXXX ) the beginning principal balance is {$430000.00}. SPS accounting records show beginning escrow balance of {$240.00} ( I dont track escrow separately ). My records show that the closing balance SHOULD have been {$430000.00}, SPS accounting records ( XXXX XXXX, XXXX statement ) show closing balance of {$430000.00}, with a carry forward ( unapplied ) balance of {$240.00}, a difference of {$1700.00}. 

On XXXX XXXX, XXXX I pulled the mail from my mail box, saw the envelope from SPS and opened when I got inside my house. Upon inspection of the statement first thing I noticed was the unapplied balance, then I noticed that their ( SPS ) transaction summary was confusing and incorrect. I called SPS immediately and talked with their representative, named XXXX, and requested that they ( SPS ) revisit the accounting indicated on the XXXX statement, that there should be NEVER any unapplied balance, and that they should correct the accounting, and send me a corrected XXXX, XXXX, statement. I told XXXX that I would delay my XXXX payment a bit so that they would have a chance to cleanly correct the accounting without having to back-out my XXXX payment. I mailed ( certified USPS ) my XXXX payment on XXXX XXXX, XXXX. 

Complaint : Because of their ( SPS ) misallocating the both the submitted escrow payment and the regular mortgage payment for XXXX, XXXX, ( total {$8000.00} ) SPS has, in effect, imposed a pre-payment penalty in violation of the terms of the note we signed when the mortgage was originated. They ( SPS ) may also have lost some of the funds we supplied to pay down the principal and / or pay into the escrow account. The interest ( for XXXX ) appears to be paid correctly. 

I am including a scan of the Transaction Activity shown in the XXXX, XXXX, statement : ( see attached file named XXXX ). 

I am including a snippit from my Mortgage Accounting spreadsheet : ( see attached file named XXXX )