Consumer complaint received 2026-04-08 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: SELECT PORTFOLIO SERVICING, INC.
State: KY

Complaint narrative:
b'Company: Select Portfolio Servicing (SPS)\nIssue: ForcePlaced / LenderPlaced Insurance\n\nSelect Portfolio Servicing (SPS) charged me approximately $5,000 in lenderplaced (forceplaced) hazard insurance for an alleged past 12month lapse in coverage. I acknowledge that my prior policy did lapse; however, SPS has made one or more servicing errors in connection with how they applied forceplaced insurance and calculated these charges, which configures a penalty rather than a force-placed insurance.\nI was not able to shop because what SPS is calling insurance does not exist for shopping according to two insurance agents that Ive consulted to shop it. There is not insurance products that cover a past period, thus SPS did not placed an insurance, delayed 12 months to submit me to a huge penalty.\nAlthough I attempted to resolve this directly with SPS calling to XXXX XXXX and XXXX XXXX, the representatives I spoke with were not able to provide accurate explanations, detailed documentation, or confirmation that SPS followed federal servicing requirements and is charging me a force-placed insurance instead of a penalty. \nI am filing this complaint because I understand that SPS have:\nFailed to provide all required notices timely to prevent from the lapse to extend.\nCharged me an abusive rate for an insurance that was never actually in effect, since it refers to the past where there are nothing else to insure.\nFailed to provide full documentation of the dates, notices, policy details, and premium calculations.\nUsed forceplaced coverage as a title for what is actually a ridiculously high penalty, since they did not provide the underwriting details and couple of insurance providers I have consulted were not even able to understand what I was looking for, since there is no such a product like an insurance for a past period.\nThe Consumer Financial Protection Bureau states that homeowners may dispute a servicers forceplaced insurance actions and send a Notice of Error if they disagree with how the servicer handled insurance on their loan. I followed this guidance and submitted a formal Notice of Error to SPS (12 CFR 1024.35) in April 1, 2026.\nI am requesting the CFPBs assistance because SPS has not resolved my concerns, and I believe there are errors in their handling, notifications, timing, and/or calculation of this lenderplaced insurance.\n- Steps I Have Already Taken:\nI contacted my prior insurer (XXXX), but they informed me they cannot reinstate coverage retroactively. They did informed me that they have notified SPS about my insurance cancellation in Jan 2025. And have notified SPS about my insurance policy contracted in Feb 2026.\nI contacted SPS twice by phone; both representatives were unable or unwilling to provide:\nCopies of timely notices allegedly sent,\nEffective dates of their lenderplaced policy,\nPremium breakdowns,\nAny verification that they complied with notice timing rules.\nI submitted a formal Notice of Error to SPS requesting full documentation and account correction.\nI still have not received a satisfactory response.'

Company response to consumer: Closed with explanation