Consumer complaint received 2025-12-29 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Paying off the loan
Company: SELECT PORTFOLIO SERVICING, INC.
State: TX

Complaint narrative:
I am the XXXXXXXX XXXX XXXX XXXX for a borrower who passed away while Select Portfolio Servicing , Inc. ( SPS ) was the mortgage servicer. 
In XX/XX/XXXX, I submitted successor-in-interest documentation to SPS following the borrowers XXXX. SPS never acknowledged receipt, never requested additional information, and never issued a written determination approving or denying successor-in-interest status. When I later contacted SPS to follow up, I was told verbally that the loan is closed, without any explanation and without addressing the previously submitted successor documentation. 
Despite having notice of the borrowers death, SPS continued to treat the loan as if the borrower were still alive. SPS accepted payments, continued standard servicing activity, and threatened foreclosure for missed payments, even though death-related servicing issues, successor status, and account questions remained unresolved. SPSs own records reference mortgagor deceased, but the account was not handled accordingly. 
On XX/XX/XXXX, I sent SPS a Qualified Written Request ( QWR ) raising specific concerns regarding : handling of the borrowers death and estate, successor-in-interest processing, loss mitigation activity, payoff accuracy, and whether credit life insurance or any ACORN-related or subsidy/forgiveness program applied to the loan. 
SPS did not provide a final, substantive response to the XXXX. Instead, SPS sent a large, disorganized packet labeled XXXX XXXX Additional Data dated XX/XX/XXXX, with a cover letter dated XX/XX/XXXX. The packet appears to be a document dump and does not directly answer the questions raised. 
Specific issues include : Failure to Process Successor-in-Interest Request SPS failed to acknowledge XXXX process, or decide the successor-in-interest request submitted in XX/XX/XXXX. This prevented the estate from receiving clear information, explanations, or resolution regarding the loan. 
Improper Acceptance of Payments and Foreclosure Threats After Death Despite notice of the borrowers death, SPS continued to accept payments and threatened foreclosure for missed payments, while failing to resolve successor, insurance, or loss mitigation issues. This placed undue pressure on the estate and was inappropriate post-death servicing. 
Failure to Investigate XXXX XXXX XXXX I asked SPS to investigate whether credit life insurance existed that could have affected the loan balance upon the borrowers death. SPS did not investigate and instead told me to contact XXXX XXXX XXXXXXXX, the prior servicer. SPS provided no written findings confirming whether such insurance existed or did not exist. 
Failure to Investigate XXXX or XXXX Status I also asked SPS to investigate whether the loan was subject to any XXXXrelated, subsidy, or forgiveness program that could affect the principal balance. SPS did not investigate or provide any documentation confirming whether such programs applied.

Improper Deflection to Prior Servicer Rather than investigating these issues as the current servicer, SPS repeatedly deflected responsibility to XXXX  XXXX XXXX, shifting the burden of investigation to the estate. 
Incomplete and Inconsistent Loss Mitigation Records SPSs packet references customer workout or loss mitigation activity in XXXX marked as closed, but SPS did not provide the actual agreements, decisions, or terms. There is no accounting showing how any workout affected principal, escrow, or fees. 
Unexplained and Conflicting Balances and Payoff The packet shows conflicting balance figures for overlapping periods and a paid in full transaction in late XXXX, but SPS did not provide the payoff statement, payoff calculation, or a complete transaction-level loan ledger. Without this information, the accuracy of the payoff can not be verified. 
Failure to Properly Respond to a QWR Despite receiving the QWR on XX/XX/XXXX, SPS did not clearly address the issues raised, did not correct errors, and did not provide clear explanations. Providing large amounts of raw data without answering the questions does not constitute a proper response. 
What I am seeking : A clear, written response that directly addresses the XXXX Proper processing and documentation of successor-in-interest status Written findings regarding credit life insurance Written findings regarding any XXXX or subsidy/forgiveness program Complete documentation of loss mitigation activity A reconciled explanation of loan balances and any payoff Confirmation that the borrowers death and estate were handled correctly

Company response to consumer: Closed with explanation