Consumer complaint received 2026-04-13 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: SELECT PORTFOLIO SERVICING, INC.
State: FL

Complaint narrative:
Complaint Against : Select Portfolio Servicing, Inc. ( SPS ) Account Number : XXXX Property : XXXX XXXX XXXX XXXX XXXX, FL XXXX I am filing this complaint against Select Portfolio Servicing , Inc. for multiple violations of federal mortgage servicing law, including RESPA ( Regulation X ) and Regulation Z. 1. Improper escrow increase ( XXXX ) SPS increased my monthly payment by approximately {$1100.00} from {$4300.00} to {$5400.00} without adequate justification under 12 CFR 1024.17. SPS later corrected this error and reduced my payment, confirming the increase was improper. This escrow error directly caused my XXXX delinquency. 2. Blocking of online payments SPS blocked my online payment access, forcing me to submit payments by certified mail the only remaining payment method available to me. 3. Receipt and refusal to apply payments ( Regulation Z violation ) SPS received the following payments and deliberately refused to apply them to my account : Check for {$9500.00} listed on my SPS statement as " funds received but not accepted '' Check No. XXXX for {$4700.00} confirmed received by SPS letter dated XX/XX/XXXX, refused as insufficient to halt foreclosure Regulation Z requires a servicer to credit a periodic payment as of the date of receipt. SPS 's refusal to apply received funds directly caused an artificial inflation of my delinquency status. 4. Manufactured default By blocking payments and refusing to apply received funds, SPS artificially created the appearance of 6 missed payments when in reality only 3 payments were outstanding. This manufactured default was then used to deny loss mitigation and justify foreclosure proceedings. 5. Improper loss mitigation denial ( 12 CFR 1024.41 ) SPS denied all home retention options on XX/XX/XXXX, using : Understated monthly income of {$9200.00} instead of my documented {$15000.00} ( bank statement income from XXXX XXXX XXXX ) Suppressed property value of {$650000.00}, ignoring a more recent and more comparable sale at {$700000.00} ( XXXXXXXX XXXX XXXX XXXXXXXX, XXXX, FL, sold XX/XX/XXXX ) Conclusory denial reasons without meaningful explanation XXXX. Improper fees SPS has assessed {$4100.00} in late charges and {$4100.00} in total fees arising directly from their own servicing conduct including refusal to accept tendered payments. 7. Demand for {$40000.00} by XX/XX/XXXX SPS is demanding immediate reinstatement based entirely on a default they manufactured. This amount includes fees and charges that arose from SPS 's own improper conduct. I have an 18-month documented history of consistent payments. I have verified monthly income of {$15000.00}. I have two minor children ages XXXX and XXXX living in this homestead property. I have filed a formal Notice of Error under 12 CFR 1024.35, Request for Information under 12 CFR 1024.36, and Appeal under 12 CFR 1024.41, sent via Certified Mail to SPS today, XX/XX/XXXX. I request that the CFPB investigate SPS 's pattern of predatory servicing conduct and require immediate correction of all errors. Desired resolution : Immediate application of all received payments Correction of delinquency status Good-faith re-evaluation for loss mitigation using accurate income and property value Reversal of all improperly assessed fees Cessation of all foreclosure activity pending investigation

Company response to consumer: Closed with explanation