Consumer complaint received 2022-04-27
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: SELECT PORTFOLIO SERVICING, INC. (NY)

CFPB Complaint Select Portfolio Servicing , Inc . 

Question 1 : Describe what happened- On Monday XX/XX/XXXX, I called Select Portfolio Servicing , Inc. along with my housing counselors from XXXX  XXXX XXXX XXXX XXXX The call was in regard to insurance checks sent to me in XX/XX/XXXX to cover the costs of remediation and repair of damage caused by flooding in my basement. When we got through to SPS , Inc., I was the only person allowed to speak on my behalf to the banks representative. The counselors were not permitted to speak with them even though I was on the call, verified my identity and gave my permission for them to speak for me. The representative said I need to have a third party authorization form on file. The authorization was faxed via eFax with confirmation on XX/XX/XXXX. 
The checks for the repairs are made out myself, the contractor ( that did the repair work ) and SPS, Inc. I spoke to XXXX a representative at SPS and told her that the contractor has the checks and that the work is already complete. I asked what needs to be done in order to have SPS endorse the checks so that the contractor can be paid. The representative said that the claim would need to be reopened, I would need to complete an affidavit of repair and an adjusters worksheet would need to be submitted by an inspector. The representative provided the regular and overnight mailing addresses where the checks should be sent. She said that because this account is currently in foreclosure status, the checks may be held in a special escrow account and either paid out in small increments or not released at all. We thought that she may have been incorrect and asked her to verify the information. She escalated a request for clarification from her lead since she was not totally sure of what would happened. The lead was unable to answer the question and we were told that the inquiry was forwarded to a special escalation queue. She said the turnaround time for the response is no later than 3 days and I would need to call back for an answer. My contractor and I were advised to delay mailing the checks until there is an answer. I found this problematic because these checks were issued over 1 year ago. I attempted to resolve this issue on my own on two previous occasions. I was given incorrect information and when I asked for a supervisor, the call was disconnected. As a result of the mishandling of my account, this issue remains unresolved. Currently the contractor has not been paid and has placed a Mechanics Lien on my property in attempt to recover his losses. 
I gave XXXX XXXX XXXX XXXX permission to contact SPS. On XX/XX/XXXX at XXXX am they called SPS to follow up on the escalated request for information regarding the check payments, XXXX, representative # XXXX in the Loss Draft department said there was no third party authorization on file. However, XXXX XXXX XXXX XXXX has confirmation that the fax was delivered on XX/XX/XXXX. He put the housing counselor on hold 3 times to check for the fax. Ultimately we were notified that the third party authorization form needed to be sent to an entirely different fax number, instead of the number that was listed on the form as the fax number to send the document. He gave them the number and they asked is there any way he could find the fax since it was sent to the fax number on their authorization form. XXXX put them on hold for a XXXX time, however he never returned to the call. They spent XXXX minutes on the call up until that point. They called back at XXXX am and spoke to XXXX XXXX. She confirmed that they would need a signed third party authorization to speak for me and provided them with the fax number of the Loss Draft department. 
On XX/XX/XXXX at XXXX am, I ( along with my housing counselors ) called Select Portfolio Servicing , Inc to follow up on the escalated inquiry regarding the checks from my insurance company intended for repair work. XXXX XXXX, in the Loss Draft department answered the call. We explained the purpose of the call and asked for additional identifying information ( her full last name or employee number ) and she refused to give it to us. She offered me an option for mobile servicing for this claim and offered to look at the notes on the account. She placed the call on hold at XXXX she told me what I need to do to in regards to the claim. We asked about the escalation and she said that she did not she see anything about it. I suggested maybe we need to speak to a supervisor and she said that she would look deeper into the notes. At XXXX she placed the call on hold once more. She returned to the call and said that she could not see an escalated request and offered to transfer the call to the resolution group. At XXXX we were connected to XXXX XXXX of the Resolution Team in the Loss Draft department. We were placed on hold at XXXX. When she returned, she said the adjusters worksheet and repair affidavit are required for the claim to be processed. She asked if I am ok with having the inspection done. She also asked if I would like to use the digital claim tracking platform. She explained the time frames for the inspection process. She found no information regarding the escalation from the previous week. I spent hours on the phone with SPS between XX/XX/XXXX and XX/XX/XXXX. There was an additional delay of one week in getting the answer to a simple question that could have been addressed on the first call. 
Because I work in the afternoon, I have a short window in the morning to handle personal business. The lack of proper handling of my issue has caused time to be wasted and more stress added to an already stressful situation. My contractor has placed a Mechanics Lien on my property for payment that has already been made by my insurer. The problem is that SPS would not clarify what happens to the checks sent in for endorsement. I reached out XXXX XXXX XXXX XXXX for help with this matter. In the process of dealing with SPS, I felt like I was being separated from my housing advocates so that I would be unable to resolve my problem.