Consumer complaint received 2019-04-23
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: SELECT PORTFOLIO SERVICING, INC. (FL)

XX/XX/XXXX SPS Servicing Executive office / QWR TO WHOM IT MAY CONCERN : This is a Qualified Written Request under the provisions of the Real Estate Settlement Procedures Act ( RESPA ) as stated in Title 12 United States Code, Chapter 27. 
I am writing to request the following regarding the Account # XXXX : XXXX and XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Fl XXXX : ( 1 ) Copies of ALL documents pertaining to the origination of our mortgage including our loan application, Right to Cancel, Deed of Trust, note including all endorsements, allonges or other indicia of all transfers since the note was signed, adjustable rate note, Truth in Lending statements, Good Faith Estimate ( GFE ), HUD 1, appraisal including comparable properties, which were used to arrive at the value for the above loan, and all required disclosures. These copies should be legible and all documents shall be copied in their entirety. 
( 2 ) The date your firm began servicing the loan.

( 3 ) The previous servicer of this loan.

( 4 ) A copy of the loan history including the current interest rate on the loan, all payments made, all fees incurred, what has been paid out of the escrow account, and how all payments were applied.

5 ) A breakdown of the current escrow charges showing how it is calculated and the reasons for any increase within the last 24 months and a statement indicating which covenants of the mortgage and/or note authorize each charge. With an explanation of why as of XX/XX/XXXX my payments were not made to escrow as contractually obligated per my note, mortgage and Modification agreements. Previously after transfer they were made appropriately from XX/XX/XXXX until XX/XX/XXXX. 
( 6 ) Please provide a copy of all trust agreements pertaining to this account.

( 7 ) If this account is registered with MERS, state its MIN number. 
( 8 ) Please provide a copy of all manuals pertaining to the servicing of this account. Also specify the policy and procedure that incorporate the application of Escrow payments and authorization to use Escrow funds to apply to principal reductions.

( 9 ) Policy and procedures on charging recoverable fees in XX/XX/XXXX-XX/XX/XXXX after principle reductions to my account were made and my payments were deemed short. 
( 10 ) Policy and procedures in regards to corrections to misapplied escrow payments to accounts where principal reductions were made without the customers knowledge or approval.

( 11 ) Policy and procedures of reversals of funds and disputed amounts that were made to accounts where escrow payments were misapplied to principal reductions ( 12 ) policy and procedures for pre-acceleration letters are sent without the Borrowers being in default per the letter received on XX/XX/XXXX. 
( 13 ) Policy and procedure of notices to borrower their payments are wrong and they are applying the payments to principal reductions instead of making contractual obligated escrow payments.

( 14 ) Policy and procedures for instructing new payment changes due to misapplied escrow payments and additional charges made to account because of reversal of funds.

( 15 ) Policy and procedures of mortgage statements showing escrows were to be paid and were not.

( 16 ) ALL voice recording and correspondences for the life of the loan regarding payment / Escrow disputes and customer contact. 
( 17 ) Please send me the original note with endorsements and allonges.

( 18 ) All trust documents, Purchase and assumptions agreements, POA and schedules of trust this loan is a part of. Servicing, sub servicing, and any authorization SPS uses as a servicing guideline to service this file. 
( 18 ) Policy and procedures on how your customer serve reps are trained to read and evaluate information on your information systems and when the training took place. 
**All of the above listed information should cover the entire life of the loan. 
We hereby dispute all late fees, charges, inspection fees, property appraisal fees, compulsory insurance charges, legal fees, and corporate advances charged to this account. 
We have reason to believe that our payments made to the servicer on this note were inaccurately charged, and/or posted, causing unnecessary financial and emotional stress to us. The need for Taxes and insurance payments that were paid on this account were misapplied as of XX/XX/XXXX going forward to present. XXXX and XXXX Remitted payments of all of our escrow shortage in 2 payments from XX/XX/XXXX and XX/XX/XXXX. I had to contact a corporate rep to help resolve the issue and I was assured the correction to the escrows were fixed. Still making weekly payments of XXXX weekly payment of XXXX was our monthly payments thus making EXCESS payments monthly. 
If the servicer did charge and apply payments properly there would be no escrow issues or misapplications of funds or needed reversals of some of our payments. The reversals of funds and applying them to our escrow now makes us have payment shortages as we pay towards the next month. On XX/XX/XXXX I was informed I was due for XX/XX/XXXX payment  even thought we had submitted XXXX in payments for the month. The chosen reversals put us in a potential breach situation due to SPS misapplication of funds. 
Since discovering this issue, we have stayed in contact with numerous people within your customer service departments, loss mitigation departments, and repeated requests for this loan to be reviewed and corrected by the executive office. I have spoken to XXXX XXXX, XXXX XXXX, XXXX XXXX and XXXX XXXX Who all assured me they would resolve it. I was advised that someone would contact me and there would be no problem getting assistance to bring the account current with reversals that were appropriate. 
A complaint with the CFPB complaint # XXXX was filed XX/XX/XXXX. I was told per SPS that the way I paid caused the misapplication. I was never informed that I couldnt pay that way and Told the associate why I paid it that way. NO ONE before the response to the CFPB EVER told me I couldnt pay that way. I was then that I was told I would have to have an increase in payment to cover the increase in escrow advances and now I have a shortage of suspense payments to cover this month. I have paid {$470.00} 3 times this month So that some of the payments were applied to last month after your company reversed only 2 months payments VS what they should have. Your misapplied practice of funds now has caused a possible impending default on the loan. Is this part of your business strategy? 
We both feel that we have been very proactive in keeping our family home. We do not want to lose our family home, and an application for a hardship withdrawal is in hand, to bring the loan due for XX/XX/XXXX. We must have a letter with the correct amounts since I have received 3 different new payments amounts. 
We have been given the runaround by your voice recognition call routing system on numerous occasions. I have talked to various agents with different versions of what the issues and how to solve it would take place. I have been re-routed to the wrong department or individual, dozens of times. This letter should serve, once and for all, to get the proper answers from your company. 
I understand that under RESPA you are required to acknowledge my request within 5 business days and must respond or try to resolve the issue within 30 business days, unless you notify me of the reasons for the delay before the expiration of the 30 business days, in that case you are allowed an additional 15 business days. 
In closing we are not trying to get out of paying the loan, we are only interested in getting the loan current and making timely payments for the remaining duration of the loan. IF this request is not responded to in a regulated time set for the by the government statutes, you are in violation I have the option to seek a legal remedy. My attorney may seek damages and settlement funds with a jury trial after a deposition of your managers I referenced above as well as your customer service representatives I spoke to. Possible violations include Unclean hands, breach of contract, estopple issues, res judicata, failure to mitigate, RESPA, FDCPA, TSPA, issues. My Attorney is awaiting your response to file and may file an action. 
Feel free to contact me at XXXX should you require any additional information or wish to discuss this matter in more detail. 
Very truly yours, XXXX and XXXX XXXX Copy to E-mail, CFPB, and Sent Certified mail.