Consumer complaint received 2021-05-03
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: SELECT PORTFOLIO SERVICING, INC. (NC)

SUMMARY OF COMPLAINT : I have requested a working solution, allowing for me to retain my home as my primary residence, to address forbearance payments allowed beginning in XX/XX/XXXX under the CARES Act mortgage forbearance allowed for federal loans. My mortgage servicer company has denied options that include keeping my home stating that I do not have a federal mortgage and therefore they are not obligated to offer any assistance. After continued attempts for resolution they refuse to provide proof that it is not a federal loan nor have they provided a satisfactory solution to the forbearance amounts. Instead they are pursuing foreclosure. I've contacted a HUD counselor who also has not been able to get any help from the servicer. 

COMPLAINT DETAILS : I purchased my home in XXXX with a XXXX XXXX mortgage. I was granted a 3-mo forbearance of mortgage payments beginning XX/XX/XXXX due to Covid affects and allowed by the CARES Act of XXXX. Subsequently, I was granted 2 more extensions for a total of 9 months ( XXXX XXXX ). My mortgage servicer at that time was XXXX XXXX XXXX ( XXXX  ) who had become my servicer in XXXX. 

I received notice in XX/XX/XXXX that ownership of my mortgage had been transferred to XXXX XXXX as Trustee for XXXX XXXX XXXX. I was then notified in XX/XX/XXXX that my loan servicer would be a new company Select Portfolio Servicing ( SPS ) effective XX/XX/XXXX. 

I contacted SPS in XX/XX/XXXX to request the final 3 months of the 1-year forbearance option offered by the CARES Act. SPS stated that I was not entitled to protections offered by the CARES Act and that I wasn't a XXXX XXXX loan. I disagreed with their statement maintaining that I am entitled to CARES Act protections. I also stated that regardless of my current status as a XXXX XXXX loan I was XXXX XXXX when I entered into the forbearance period so was entitled to the full year offered by the Act as well as loss mitigation options to keep my home including the option of adding the forbearance amounts to the end of the loan. SPS argued I was not a federally protected loan but that they should be able to provide assistance under their own programs after I completed an application for assistance. Since I was unfamiliar with what to do at that moment in time I completed the application for assistance on the SPS website and received notice that my application paperwork was complete and after review of the paperwork SPS would provide a response. A letter dated XX/XX/XXXX denied assistance and only offered " Home Non-Retention Options ''. I appealed the decision within the 30-day period required, on XX/XX/XXXX, claiming the CARES Act protections still apply. I remained in contact with the servicer while waiting for SPS to review my appeal and was told repeatedly to continue waiting for a response to the appeal. However, I never received a response to the appeal. 

I was then notified via an email on XX/XX/XXXX that correspondence was loaded into my SPS website account. The correspondence was a letter dated XX/XX/XXXX that SPS referred my account to an attorney for foreclosure. I immediately contacted SPS and their representative stated they had not looked at nor reviewed the appeal since it was submitted to SPS by me and that he would expedite a review. I was told to wait yet again and to give them 3-5 business days for a response. Since it had been already been over 50 days since I submitted my appeal and they had started foreclosure procedures I decided to contact my local HUD counselor for assistance.

I contacted the local HUD counselor that same day and explained the problem I was having with my mortgage servicer and provided documentation supporting my claim as a federally protected mortgage. The counselor subsequently contacted both XXXX  and SPS and has had significant difficulty with the companies just as I have. This includes SPS telling the HUD counselor that I had not submitted documents for assistance. I was then able to provide documentation to the HUD counselor that I had submitted all required documentation and that SPS acknowledged receiving it. 

A 3-way call on Friday, XX/XX/XXXX with XXXX, the HUD counselor and myself resulted in the XXXX  representative stating the loan ownership changed in XXXX and that he could refusing to offer any more information. The HUD counselor has submitted Qualified Written Requests ( QWR ) to both XXXX  and SPS for proof of loan ownership changes as well as other questions related to this complaint ( see attached QWR copies ). 

To date neither I nor the HUD counselor have received supported information/documentation from XXXX or SPS that I am not entitled to CARES Act protections. The mortgage servicer continues their efforts to foreclose my mortgage. 

I did contact SPS XX/XX/XXXX, which is 7 days since my contact with them regarding the foreclosure process and I was told my appeal was being expedited. SPS says they can not provide a decision until they discover the source of the problem as to why they didn't review the appeal. I stated to the representative that the internal failings related to them should not affect them providing appropriate home retention solutions. He spoke with a supervisor and I was told their hands were tied while the appeal was in review. The foreclosure process still continues. 

ADDITIONAL INFORMATION : 1. SPS claims XXXX  did not make them aware my mortgage was XXXX XXXX so therefore in the eyes of SPS it is not. They have refused to follow-up with XXXX  to verify why it was reported to them as a non-federal loan. 
2. I contacted FHFA who only referred the matter to XXXX XXXX. 
3. In XX/XX/XXXX I verified via the XXXX XXXX website tool that my loan was in fact XXXX XXXX. The website tool identified that yes, my mortgage was a XXXX XXXX loan. After contacting XXXX XXXX, both via their website and phone, result in the representative stating that I am not a XXXX XXXX loan and that I must speak to the mortgage servicer for inquiries. I have made it clear that I am looking for help because, at minimum, I was a XXXX XXXX loan in XX/XX/XXXX and need help to find how that was changed. They denied assistance and only refer me back to the servicer. 
4. Per the HUD counselor there appears to be a discrepancy regarding paying escrow amounts however the company never explained to me that these amounts were required during the forbearance period. 
5. This complaint is about 3 entities : Select Portfolio Servicing ( SPS ), XXXX XXXX XXXX ( XXXX ) and XXXX XXXX because after asking for assistance regarding this matter I'm not able to get assistance from any of them regarding my federal loan status. 
6. This complaint is specific to my mortgage loan however I do have serious concerns regarding the transfer of mortgage loans from XXXX XXXX regular type loans to a XXXX XXXX Investment Trust ( XXXX  XXXX ). The offering circular for XXXX XXXX XXXX XXXX appears to reflect that ultimately XXXX XXXX is still backing the mortgage loans included in the trust so I can not understand how XXXX XXXX, XXXX  and SPS can state that my mortgage is not a federally backed mortgage.