Consumer complaint received 2015-06-23
Product: Mortgage — Conventional fixed mortgage
Issue: Application, originator, mortgage broker — 
Company: SELECT PORTFOLIO SERVICING, INC. (CA)

My loan is with XXXX. Once the banks were forced to re-finance people with the HARP extension, etc. XXXX turned my loan over to a servicing company called SPS who did n't have to follow the same rules of behavior because they were not a bank/mortgage company. 

I have been in a battle with SPS going on 3 years now stuck on a continuous carousel of them asking for ever more paperwork, paperwork they already had, asking for irrelevant paperwork and even deciding in a few circumstances to arbitrarily close my application for reasons claiming " insufficient paperwork '' when the person on the phone told me 2 days earlier that they had in fact received everything. This forced me to have to start all over again - sometimes - 2 months into the process.. 

I then filed a complaint with the FTC a couple of years back and their " investigation '' was a joke. They simply contacted SPS who then said I simply never finished the application. With that - they simply took SPS ' word for it and closed the complaint. During the entire process - SPS then assured me that as long as the application process was proceeding that they would not begin foreclosure proceedings on the house. Well in the latter half of 2014 that 's exactly what they did, while denying it to me when I called. It was only when I showed them actual foreclosure paperwork that was nailed to the door on the property that they in fact admitted that they did start the foreclosure process while I was in the middle of the app process once more. 
Now - in regards to the " never completing the application '' SPS is simply playing a well organized game to keep the applicant from ever completing an application. They maintain that all paperwork must be no more than 90 days old. But they string out their paperwork requests over months so that at a certain point, there will always be something that is over 90 days old that you will continually have to resubmit. The worst part is that you never know and they will never tell you when you have completed the application because there is never a comprehensive list of exactly what you need to send them. So you never know whether you have sent them all the paperwork they need. I have literally been submitting the same paperwork over and over to them for almost 3 years now. 
To make matters worse, I have actually involved an attorney because I wanted an objective XXXX party to be witness to what was going on. To date, the attorney has admitted to me that what SPS is doing is completely insane, insidious and is the textbook case of acting in bad faith. Unfortunately, due to the way the law is structured SPS is not technically doing anything wrong. 
So - to date, even though I know I qualify for a re-finance, even having worked with the SPS Ombudsman ( who was useless by the way ) and then an attorney - SPS is continuing to play games with us by continually asking for endless paperwork over and over. And now the property is in foreclosure limbo, which means I ca n't live in it or put anyone else in it. But am still responsible for the tangential costs ( HOA, insurance, etc. ) which is now adding additional thousands of dollars to my debt. 
SPS has lied to me at just about every turn from the first day I had dealt with them. Acted in bad faith in preventing me from completing the application so that I can refinance the property under HARP/HAMP and is moving to foreclose on the property while lying to me telling me that as long as the application process is occurring that the home will not be foreclosed on. 
I dont know what your organization considers an abuse of power in an economically disadvantageous situation, or what you consider a good example of corporate misbehavior. But if this is not it, then I do n't know what is. 

You are the consumer protection agency - here is a customer that needs protecting. Please read this and do the right thing. 

Thank youXXXX XXXX