Consumer complaint received 2023-11-24
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage — Foreclosure
Company: Specialized Loan Servicing Holdings LLC (CA)

I am writing to bring to your attention a critical matter concerning the actions of Specialized Loan Servicing LLC ( SLS ) that directly contravene established legal agreements and consumer protection statutes. 

Attached herewith, you will find documentation outlining the violations perpetrated by XXXX in relation to my XXXX XXXX XXXX XXXX  Agreement XXXX XXXX XXXX. Over an extended duration of approximately a decade, XXXX remained dormant while my home had no equity. Despite this fact, the company has now resorted to threatening fXXXX on what is termed a " XXXX XXXX  '' after the property has acquired equity. This approach mirrors not only my personal situation, but also the cases extensively reported on in the media and documented within the Consumer Financial Protection Bureau 's ( CFPB ) XXXX XXXX, Settlement, and Guidance materials, all of which are attached to this formal complaint. 

The CFPB specifically addresses the unlawful tactics resembling those employed by XXXX, stating, " Now, over a XXXX later, and often without any intervening communication with homeowners who were able to save their homes, some of these XXXX  XXXX are demanding the mortgage balance, interest, and fees, and threatening foreclosures on families who do not or can not pay '' ( see attached documents ). 

The tactics employed by XXXX in my case echo this finding. It is imperative to note that XXXX  XXXX engaging in efforts to recover on these " XXXX XXXX XXXX '' may be in direct violation of the Fair Debt Collection Practices Act. 

During the period when my property lacked equity, spanning nearly XXXX years, XXXX egregiously failed to furnish regular statements or updated balance information regarding my mortgage account, a breach explicitly outlined in Section 4.b. of my XXXX agreement ( attached below ). However, upon the accumulation of equity of my home, XXXX abruptly initiated foreclosure proceedings, setting the foreclosure date for XX/XX/XXXX. 

The patterns in XXXX 's conduct unequivocally indicate predatory and deceptive business practices, blatantly flouting established laws and regulations, as corroborated by the CFPB 's XXXX XXXX, XXXX, and XXXX documents. 

Notably, the XXXX Consent Order issued by the CFPB against XXXX serves as a XXXX illustration of the company 's transgressions under the Real Estate Settlement Procedures Act ( RESPA ), Regulation X, and the Consumer Financial Protection Act of XXXX ( XXXX ). 

The findings of this order resonate with the circumstances of my case, citing XXXX 's unlawful foreclosure actions against borrowers entitled to protection from such measures and their failure to timely deliver regular statements and evaluation notices to mortgage borrowers, in direct violation of Regulation X. 

Namely, regulation X requires that " servicers provide written notice to borrowers at certain times during the life of the loan, including at least once a month for borrowers with variable-rate mortgages with XXXX adjustments or other loans with payments that can change. The notice must include a statement of the account that includes the amount due, the due date, and the breakdown of payments, including the amount applied to principal, interest, and escrow, if applicable '' ( see attached ). 

Furthermore, the CFPB 's Consent Order stipulated that XXXX pursued foreclosure judgments and sales when compliance with Regulation X would have shielded borrowers from such actions. As a consequence of these violations, SLS was to provide almost XXXX in XXXX relief to consumers, waive XXXX in XXXX deficiencies, pay a XXXX XXXX XXXX penalty, and implement stringent compliance procedures to adhere to RESPA and Regulation X. 

XXXX 's failure to adhere to the terms of my XXXX, particularly the requirement to furnish regular statements as mandated, has culminated in misinformation about my loan status and an egregious financial burden. The company 's disregard for regulatory obligations and their foreclosure threat demanding an exorbitant down payment against an accrued interest balance exceeding the original loan amount of XXXX  by over XXXX is not only unreasonable but also ethically unsound, unfairly jeopardizing my home. 

Furthermore, in my attempts to acquire pertinent documentation from Specialized Loan Servicing LLC ( SLS ) pertaining to representations made regarding the particulars of my loan and its current standing, XXXX exhibited a consistent refusal to furnish such records despite repeated and diligent efforts on my part. XXXX ' refusal and neglect in furnishing these documents may constitute additional violations of the aforementioned laws and procedures. 

The absence of furnishing such documentation has resulted in inaccurate information concerning my loan and its status and has led to a significant financial hardship. 

The preceding events, including the CFPB 's impactful actions against XXXX in XXXX, underscore a concerning pattern of regulatory non-compliance and predatory practices. XXXX 's history of consumer complaints, legal actions across various states, and the marked absence of adherence to ethical and codified business practices and policies further accentuate their consistent deviation from lawful conduct. 

Given the recent CFPB XXXX Order and the alarming recurrence of egregious practices by SLS, I implore you to take action to hold SLS accountable for its persistent violations. It is imperative to safeguard consumers from enduring further exploitation resulting from such abusive practices both now and in the future. 

Link here ( Filed XX/XX/XXXX ) : UNITED STATES OF AMERICA XXXX XXXX XXXX XXXX XXXX XXXX PROCEEDING File No. XXXX '' XXXX XXXX XXXXXXXX Link here ( dated XX/XX/XXXX ) : " Consumer Financial Protection Bureau Settles with Specialized Loan Servicing XXXX XXXX '' XXXX XXXX XXXX/ Link here ( dated XX/XX/XXXX ) : " CFPB Issues Guidance to Protect Homeowners from Illegal Collection Tactics on XXXX XXXXs 'XXXX XXXX XXXX XXXX Regulation X : Real Estate Settlement Procedures Act XXXX XXXX XXXXXXXX % XXXX Link here ( XXXX XXXXXX/XX/XXXX ) : " What is a XXXX XXXX? Couple facing foreclosure because of XXXX ' loan | What to know '' XXXX XXXX XXXXXXXX Link here ( dated XX/XX/XXXX ) : " XXXX Mortgages Could Force Some Homeowners Into Foreclosure '' XXXX XXXX XXXXXXXX