Consumer complaint received 2026-04-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: SELECT PORTFOLIO SERVICING, INC.
State: MD

Complaint narrative:
In XX/XX/XXXX, SPS allowed portfolios of homeowners insurance policies to lapse and enroll in force-placed/ hazard insurance without homeowners required knowledge and consent. SPS makes millions in profits from kickbacks and fees generated from the numerous properties in the portfolios that are intentionally and erroneously enrolled in force-placed/hazard insurance. On XX/XX/XXXX the property owner, the property owner, survived a devastating fire rendering the property, their home, inhabitable. The property owner 's survival following this date of loss led to the fact that SPS allowed their original insurance policy with XXXX to lapse and enrolled the property owner into XXXX XXXX XXXX XXXX force-placed lenders insurance policy ( XXXX ), charging premiums. SPS never informed the portfolio of homeowners of any issues with insurance before policy lapse and presented to the homeowners that their original insurance was active through online representations, false insurance renewals and false active policy documents. The property owner likewise received false insurance renewals and no representation in writing, as is required, that SPS failed to renew the original insurance and instead enrolled the property owner into XXXX. This is sophisticated insurance fraud and an attempt to defraud homeowners of their real property on behalf of the mortgage servicer SPS. Here, SPS charged premiums to the property owner and numerous homeowners for insurance that they will never receive. SPS charged premiums for XXXX years for a policy SPS will not provide to the property owner. This is because the property owner will not retract civil complaint and the property owner filed complaints with the XXXX XXXX XXXX ( XXXX ) regarding SPS and XXXX. It is important that before proceeding to the XXXX, SPS via XXXX XXXX and XXXX via XXXX XXXX expressed to the property owner that if the property owner pursued the XXXX to receive insurance benefits from XXXX to rebuild her home, both SPS and XXXX would take measures to delay the property owner 's insurance benefits to rebuild. On XX/XX/XXXX, the property owner filed a complaint with the XXXX. On XX/XX/XXXX, XXXX XXXX, Senior Manager of XXXX XXXX XXXX XXXX XXXX at XXXX, issued insurance settlement for the fire loss on XX/XX/XXXX. On XX/XX/XXXX, the property owner contacted SPS and formally requested SPS complete the insurance process via endorsement and distribution. No response and no documents were ever mailed by SPS to complete the insurance process to rebuild the property owner 's home. Subsequently, the property owner made numerous requests to SPS to complete the insurance and start construction. The last contact was on XX/XX/XXXX, when the property owner spoke with XXXX at SPS Legal Department. XXXX advised that SPS had not sent any documents to complete the insurance process and changed the parties responsible to complete the process from XXXX XXXX to XXXX XXXX, with XXXX XXXX being responsible to mail and complete the XXXX insurance endorsement. Currently, the SPS loss department and the SPS litigation department continue to delay and ignore the property owner 's request and present communications. XXXX XXXX, nor any other representatives and or affiliates of have provided any communication regarding executing XXXX insurance settlement to rebuild SPS also constitutes a person within the meaning of 18 U.S.C. 1961 ( 3 ) and conducted and participated in the affairs of an enterprise affecting interstate commerce. The enterprise consists of an association-in-fact between SPS, affiliated insurance providers, and related servicing entities engaged in the administration of mortgage loans and force-placed insurance products. SPS, through this enterprise, engaged in a pattern of racketeering activity consisting of repeated acts of wire and mail fraud, in violation of 18 U.S.C. 1341 and 1343 by transmitting materially false and misleading communications to homeowners, including the property owner and similarly situated homeowners regarding the status of insurance coverage, the necessity and enrollment of force-placed/hazard insurance. These communications were designed to deceive borrowers thereby enabling SPS to impose force-placed insurance policies at inflated costs and reduced benefits. The predicate acts include, but are not limited to, written notices, billing statements, escrow analyses, and electronic communications misrepresenting insurance status and servicing actions. These acts were related and continuous, forming a pattern of racketeering activity that poses a threat of continued criminal conduct to XXXX homeowners. The scheme was executed for the purpose of generating unlawful profits through increased premiums, fees, and financial arrangements associated with force-placed insurance, while depriving homeowners of the benefits of their original insurance policies. As a direct and proximate result of SPS violations, homeowners, including the property owner, suffered injury, injury to property, including increased mortgage charges, loss of insurance benefits, and for the property owner specifically, delay in repair of property following fire loss, and additional financial damages including increased cost of living expenses, property repairs following fire loss. The enterprise consists of an association-in-fact between SPS, affiliated insurance providers, and related servicing entities engaged in the administration of mortgage loans and force-placed insurance products.SPS, through this enterprise, engaged in a pattern of racketeering activity consisting of repeated acts of wire and mail fraud, in violation of 18 U.S.C. 1341 and 1343 by transmitting materially false and misleading communications to homeowners, including the property owner and similarly situated homeowners regarding the status of insurance coverage, the necessity and enrollment of force-placed/hazard insurance. These communications were designed to deceive borrowers thereby enabling SPS to impose force-placed insurance policies at inflated costs and reduced benefits. The predicate acts include, but are not limited to, written notices, billing statements, escrow analyses, and electronic communications misrepresenting insurance status and servicingactions. These acts were related and continuous, forming a pattern of racketeering activity thatposes a threat of continued criminal conduct to XXXX homeowners. The scheme was executed for the purpose of generating unlawful profits through increased premiums, fees, and financial arrangements associated with force-placed insurance, while depriving homeowners of the benefits of their original insurance policies.

Company response to consumer: Closed with explanation