Consumer complaint received 2025-08-07 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Setting up an escrow account for taxes and insurance
Company: SELECT PORTFOLIO SERVICING, INC.
State: NY

Complaint narrative:
FORMAL COMPLAINT Submitted by XXXX XXXX XXXX, Borrower Property Address : XXXX XXXX XXXX XXXX, XXXX XXXX, NY XXXX I am filing this formal and detailed complaint regarding my mortgage loan and a series of serious issues that have occurred from origination to current servicing. I believe I have been subjected to misleading lending practices, escrow overcharges, missing refunds, and unethical behavior from multiple parties, including my loan originator and the servicing company. The entities involved are : XXXX XXXX ( NMLS # XXXX ), the mortgage loan originator XXXX XXXX XXXX, brokerage affiliated with XXXX XXXX XXXX XXXX, the lender at closing Select Portfolio Servicing ( SPS ), the current loan servicer 1. Switching of Lenders Without Informed Consent In XX/XX/XXXX, XXXX XXXX received a Loan Estimate ( LE ) and Closing Disclosure ( CD ) from XXXX XXXX under XXXX XXXX XXXX . However, by early XX/XX/XXXX, a different loan under XXXX XXXX was apparently signedwithout Bretts knowledge or consent, and with no communication or documentation trail. The borrower has no memory of signing XXXX documents, received no CD or email notifications, and did not attend a closing. This suggests violations of TILA/Reg Z , e-signature consent laws, and RESPA.

2. Escrow Inflation at XXXX XXXX XXXX XXXX loan included an escrow account that was over 300 % inflated beyond market norms, effective from the first payment due XX/XX/XXXX. This increase was never disclosed or justified. The borrower never agreed to these terms. 



3. SPSs Role in XXXX XXXX XXXX SPS began servicing the loan on XX/XX/XXXX. From that point, they continued the inflated escrow charge. In XX/XX/XXXX, SPS refunded the escrow only for the year XXXX XXXX XXXX. They failed to refund any amount for XXXX XXXX XXXX. SPS also claimed to have issued a refund that does not appear in any bank records, nor does their system show proof of issue. 



4. Deceptive Conduct by XXXX XXXX XXXX When confronted in XXXX, XXXX XXXX admitted he noticed the inflated escrow but failed to disclose it to the borrower. Instead, he attempted to push the borrower into a refinance that would benefit him personally. He refused to provide a CD from XXXX and instead sent a self-created XXXX spreadsheet with no APR or legal disclosures. 

It is also important to note that when XXXX XXXX presented a refinancing proposal in XXXX, referred to as a Good Faith Estimate, it still contained the same overinflated escrow figures from the original XXXX closing. This confirms that he failed to address or correct the issue, and instead reused the inflated figures as the basis for a refinance pitch, further casting doubt on whether it was made in true good faith. 



5. Summary of Violations This complaint alleges the following : Loan switching without informed consent ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) Inflated escrow and overcharge ( XXXX  / SPS ) Missing escrow refunds ( SPS ) Conflict of interest and non-disclosure ( XXXX XXXX ) Improper closing and disclosure omissions ( XXXX XXXX XXXX / XXXX  ) 6. Action Requested On behalf of XXXX XXXX XXXX, we request : Investigation into XXXX XXXX ( NMLS # XXXX ) and XXXX XXXX XXXX Full escrow accounting and refund from SPS, including XXXX XXXX XXXX  Review of XXXX closing and documentation trail Enforcement or escalation to CFPB, FTC, or DOJ Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX, NY XXXX Phone : XXXX Email : XXXX XXXX

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