Consumer complaint received 2025-09-10 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Loan sold or transferred to another company
Company: SELECT PORTFOLIO SERVICING, INC.
State: WA

Complaint narrative:
Subject : Complaint Regarding Mortgage Servicing Transfer and Incorrect Delinquency Status Previous Servicer : XXXX Current Servicer : SPS Bank Dear Consumer Financial Protection Bureau, I am writing to file a formal complaint regarding a serious issue with the servicing of my mortgage loan, which was recently transferred from XXXX to SPS Bank. This issue has resulted in my account being incorrectly marked as in default, despite my having made a timely payment. 

Background : My mortgage for the investment property was originated with XXXX on XX/XX/2025. The loan was subsequently transferred to SPS Bank on XX/XX/2025. 

Timeline of Events : XX/XX/2025 : I made my mortgage payment for the month of XXXX directly to XXXX, as my account information from SPS Bank had not yet been fully established. I have a record of this payment being successfully received by XXXX on XX/XX/2025. 

Late XXXX XX/XX/2025 : I received communication from SPS Bank demanding payment for XX/XX/2025, claiming my account was past due and threatening to report me as delinquent. 

Subsequent Communications : I have since attempted to resolve this issue with both XXXX and SPS Bank. XXXX has confirmed to me that they received the XXXX payment but have not yet forwarded the funds to SPS Bank. SPS Bank, however, refuses to acknowledge this and continues to hold me responsible for the XXXX payment ( proof has been shared with SPS Bank ). 

Current Situation : My account with SPS Bank says they will place the account in " default. '' Furthermore, SPS Bank is not accepting payments for subsequent months ( XXXX, XXXX, etc. ) until the XXXX payment is resolved. This has created a situation where I am unable to make my required monthly payments through no fault of my own. 
SPS Service Bank is also transferring this loan to XXXX XXXX XXXX XXXX XXXX effective XX/XX/2025. This only creates more confusion and distress. 

Harm Incurred : This situation is causing me significant financial distress and may negatively impact my credit score. It also creates the risk of future legal action, including potential foreclosure proceedings, due to an error that is entirely on the part of the mortgage servicers. 

Desired Outcome : I request that the CFPB investigate this matter and ensure the following actions are taken immediately : SPS Bank must credit my account for the XX/XX/2025 payment, which was made and received by XXXX. 

My loan status with SPS Bank must be corrected to " current, '' and the " default '' status must be removed. 

Any negative reports to credit bureaus must be corrected or removed immediately. 

SPS Bank must provide a clear path for me to resume making regular monthly payments. 

I have attached all relevant documentation ( Attach the email you sent SPS bank ), including proof of payment to XXXX and any correspondence or notices from SPS Bank. I look forward to your prompt assistance in resolving this matter.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation