Consumer complaint received 2021-03-24 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Specialized Loan Servicing Holdings LLC
State: WA

Complaint narrative:
I made a mortgage payment in the amount of {$1500.00} to XXXX on XX/XX/XXXX, via ACH payment. At this time, my loan was being transferred to Specialized Loan Servicing. Realizing I should have waited to pay directly to SLS, I contacted XXXX about the payment. They assured me they would forward the payment to Specialized Loan Servicing. I contacted SLS regarding the matter. I was advised by SLS not to make an additional XXXX payment, as it would be applied when transferred to them. After waiting for an extended period of time, I contacted Specialized Loan Servicing to see why the payment hadn't been applied yet. SLS claimed they never received the payment. XXXX provided me with a copy of bulk check number XXXX with FedEx tracking XXXX, and claimed that my {$1500.00} payment for XX/XX/XXXX was included in that check to SLS. I contacted SLS  again and gave them the information. They insisted they had not received it but would open up a dispute with the information I had provided. After several failed attempts to resolve the issue with customer service directly, I wrote a formal notice of error to Specialized Loan Servicing. I provided them the information given to me by XXXX that showed the payment had been received and deposited. After conducting their research, they provided an official statement claiming that they did not receive any payment, and that there was no error on their part. I then submitted a formal notice of error to XXXX advising that Specialized Loan Servicing conducted research, and concluded no error on their part. XXXX responded again stating that the payment had been forwarded to Specialized Loan Servicing, and this time provided me with a redacted copy of the itemized account list contained in the bulk payment. 
I have evidence that the check with my specific payment was received, signed for, and deposited by Specialized Loan Servicing, yet they refuse to apply it to my account or refund it to me as requested in my formal letter to them. 
While my payment was being disputed with SLS, I continued to make on time payments for XXXX, XXXX, and so on. I was told I did not have to repay the XXXX payment while it was under dispute. Nobody contacted me to advise the dispute was over. This labeled my XXXX payment as late. My XXXX payment was instead applied to XXXX, and my XXXX payment was applied to XXXX. I contacted their customer service multiple times trying to resolve the missing payment with no resolution. Once I discovered the dispute was closed, I made an additional payment to cover XXXX and avoid penalty. It wasnt until I requested my mortgage insurance be removed after the new year of XXXX that I discovered they had labeled XXXX, XXXX, and XX/XX/XXXX payments as late. Because of these late payments, SLS has refused to remove mortgage insurance.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation