Consumer complaint received 2025-07-21 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: SELECT PORTFOLIO SERVICING, INC.
State: PA

Complaint narrative:
Original complaint : We closed on a refinance in XXXX. School real estate tax bill information was provided to the mortgage company, Select Portfolio Services, at closing. Escrow account was sufficiently funded to pay this tax bill along with other tax bills and insurance. SPS neglected to pay the {$19000.00} school tax bill by the due date of XX/XX/XXXX. Upon being notified by the XXXX XXXX XXXX XXXX in early XXXX  that the tax bill was not paid, I notified SPS via phone that the bill was not paid and that they should pay it immediately. They acknowledged this and we assumed it was taken care of. We were then notified by the township that the bill still wasn't paid and if not paid by XX/XX/XXXX, it would be sent to collections. Once again, SPS was notified and a request was made to pay the taxes with the escrow account. They still did not pay the taxes and the amount due was sent to collections. At this point, the original tax bill of {$19000.00} had increased through fees and penalties to {$23000.00}. Once again, SPS was notified across multiple phone calls and emails to pay the taxes and reimburse us for the fees and penalties, which they acknowledged verbally on several occasions were a result of their mistake. After months and months of calls and emails, I was forced to pay the entire bill out of my own pocket in order to avoid further detrimental affect on my own financial situation. Presumably I will be reimbursed for the excess in my escrow account for the year, but SPS needs to reimburse me for the fees and penalties totaling {$3500.00}. We only incurred those fees because of their negligence. They have admitted as such, but refuse to follow through in processing the reimbursement. 

company response : Taxes - In the inquiries, you questioned why the taxes were not paid by SPS and became delinquent. The taxes were paid late due to an SPS error. We apologize for any inconvenience this error may have caused. The taxes have been paid current and the penalties will not be due by you. We verified with the taxing agency that the XXXX  XXXX taxes were paid in the amount of {$6000.00} with an economic loss date of XX/XX/XXXX. The XXXX  township taxes were paid in the amount of {$3800.00} with an economic loss date of XX/XX/XXXX, and the XXXX school taxes were paid in the amount of {$19000.00} with an economic loss date of XX/XX/XXXX. We have also verified that there is an interim bill of {$400.00} that was paid. There is no refund due on the account, as taxes that were disbursed from the escrow were applied. The tax lines were updated and there are no outstanding taxes due on the account. For your review, we have enclosed the Escrow Disbursement History. As of the date of this letter, the account is due for XX/XX/XXXX. 

New complaint : SPS admits to the mistake, but incorrectly states in their response to the original CFPB complaint that the penalties will not be due to us. That is incorrect because I already paid the penalties out of my own pocket. Proof of that payment will be provided with this complaint. I have also sent them a qualified written request under RESPA requesting reimbursement for the penalties incurred.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation