Consumer complaint received 2025-03-25 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA

Complaint narrative:
Complaint Summary : ( A ) I am filing this complaint against Select Portfolio Servicing , Inc. ( SPS ) for engaging in wrongful and illegal foreclosure despite lacking legal standing to do so. SPS is not my mortgage servicer, has no contractual relationship with me, and has fabricated foreclosure-related documents to falsely claim authority to foreclose. Their actions violate federal and state laws, including the Fair Debt Collection Practices Act ( FDCPA ), Real Estate Settlement Procedures Act ( RESPA ), California foreclosure statutes, and fraud laws. 
( B ) This wrongful foreclosure is based entirely on fraudulent and legally void documents. I urge the CFPB to take swift action to prevent SPS from continuing its illegal foreclosure practices. 

( C ) I request that the CFPB investigate SPS immediately and take action to stop this wrongful foreclosure currently scheduled for XX/XX/XXXX XXXX 

Violations of Law and Specific Issues : 1. SPS Has No Standing to Foreclose ( a ) I have no contractual relationship with SPS. ( b ) I have never made any payments to SPS, nor have I acknowledged them as a legitimate servicer. ( c ) California Civil Code 2924 ( a ) ( 6 ) requires that only the actual holder of the beneficial interest can initiate foreclosure. SPS is falsely claiming this right without legal authority. ( d ) Potential Penalty Any foreclosure conducted without proper standing is void under California law.

2. SPS is Ignoring a Stipulated Agreement that the Loan is Void ( a ) There is a stipulated and undisputed agreement that the original promissory note and deed of trust are void. ( b ) If the underlying note and deed of trust are void, any subsequent assignmentsfraudulent or legitimateare also void and unenforceable. ( c ) Despite this, SPS is falsely acting as a loan servicer for a non-existent debt and has no standing to foreclose.

3. SPS Fabricated an Assignment of Deed of Trust and Substitution of Trustee ( a ) SPS created an in-house fraudulent assignment of the deed of trust and a substitution of trustee to falsely claim authority to foreclose. ( b ) They recorded these documents under an alleged attorney-in-fact authority, but never recorded the Power of Attorney granting them such rights. ( c ) Violation of California Civil Code 2924.17 Foreclosure documents must be accurate and legally verified before recording. Fabricating assignments and substitutions of trustees violates this statute. ( d ) Violation of California Business & Professions Code 17200 ( Unfair Competition Law UCL ) Engaging in fraudulent business practices by recording false foreclosure documents. ( e ) Potential Penalty : Courts can void the foreclosure, issue monetary damages, and impose injunctive relief against SPS.

4. Broken Chain of Title Fraudulent Foreclosure Attempt ( a ) The chain of title is irreparably broken, with multiple entities falsely claiming an interest in my property. ( b ) The corrective deed of trust recorded by SPS attempted to substitute beneficiaries in violation of California law, which does not allow corrective deeds to replace beneficiaries. ( c ) Because of this defective assignment, SPS is foreclosing on behalf of a party with no legal claim to the property. ( d ) California Civil Code 2934a requires that a valid substitution of trustee come from the legal beneficiarySPS is relying on an invalid appointment. ( e ) Potential Penalty : A foreclosure based on an invalid chain of title is voidable, and the foreclosing party may be liable for damages.

5. Violation of RESPA Foreclosure Without Responding to My Qualified Written Request ( QWR ) ( a ) I sent a Qualified Written Request ( QWR ) to SPS in XX/XX/XXXX, requesting full loan validation and accounting. ( b ) SPS failed to provide a substantive response and instead moved forward with foreclosure, violating : ( c ) 12 U.S.C. 2605 ( e ) ( RESPA ) Failure to respond to a QWR before taking foreclosure actions ( d ) 12 C.F.R. 1024.41 ( f ) Prohibition on foreclosure while a loss mitigation application ( or dispute ) is pending ( e ) Potential Penalty : RESPA provides for {$2000.00} per violation in statutory damages, plus actual damages, attorneys fees, and injunctive relief to stop foreclosure.

6. Violation of the Fair Debt Collection Practices Act ( FDCPA ) ( a ) 15 U.S.C. 1692g requires debt collectors ( including mortgage servicers like SPS ) to cease all collection activities, including foreclosure, when a debt is disputed. ( b ) I disputed SPSs debt claim, yet they proceeded with foreclosure without validation. ( c ) Potential Penalty : FDCPA violations can result in {$1000.00} per violation, plus actual damages and attorneys fees.

ATTACHMENTS : ( 1 ) Copy of my QWR sent to SPS ( XX/XX/XXXX ( 2 ) Copy of the fraudulent CORRECTIVE assignment of the deed of trust ( 3 ) copy of the fraudulent corporate deed of trust fabricated in-house without recording POA ( 4 ) Copy of the fraudulent substitution of trustee ( 5 ) Copy of the stipulated agreement confirming that the loan is void ( 6 ) Other relevant foreclosure-related documents

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