Consumer complaint received 2025-05-28 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Loan estimate or other related disclosures
Company: SELECT PORTFOLIO SERVICING, INC.
State: NC

Complaint narrative:
To Whom It May Concern, Subject : Request for Investigation and Relief SPS Mortgage Account # XXXX I am writing to formally request a full investigation into the handling of my mortgage loan, Account Number # XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX, currently serviced by Select Portfolio Servicing ( SPS ). This account was transferred from XXXX XXXX, and per the Real Estate Settlement Procedures Act ( RESPA ), the original terms and conditions of my mortgage should have remained unchanged. 
Since SPS began servicing my loan, I have experienced a series of questionable and possibly fraudulent actions. These include, but are not limited to : Escrow Mismanagement : SPS claimed a shortage in my escrow account and demanded approximately {$600.00} in additional funds monthly. They then stated the need for an escrow cushion, without offering a clear or lawful justification. However, after submitting multiple formal complaints to the XXXX XXXX XXXX ( XXXX ), the State Attorney General, and the Office of Consumer Affairs, SPS subsequently removed all escrow requirements. This sequence of actions raises serious concerns about their original intent and practices. 
False Credit Reporting : SPS reported inaccurate and damaging information to credit bureaus. This false reporting has impacted my creditworthiness and financial standing, and I demand that all incorrect entries be immediately corrected. 
Violation of Federal Lending Laws : These actions appear to be in violation of the Truth in Lending Act ( TILA ), RESPA, and may constitute predatory lending and mortgage fraud. SPS has shown a pattern of behavior that appears to involve extortion of additional funds under false pretenses, inconsistent and unlawful account management, and misinformation to regulatory bodies and credit reporting agencies. 
Escrow Surplus Confusion : As you are aware, federal guidelines require that any surplus funds remaining in an escrow account at the end of the year be returned to the borrower. Therefore, the demand for additional escrow funds as a cushion is not only unjustified but also misleading, unless properly explained with transparent calculations and in full compliance with HUD guidelines. 
Given these serious and potentially unlawful actions, I am requesting the following : 1. A full and independent investigation into SPS and their handling of my account.

2. Immediate correction of all false or misleading information reported to any credit bureaus.

3. An audit of all transactions made on my account since the transfer from XXXX XXXX.

4. Discharge or cancellation of my mortgage, given that the servicing of this loan appears to be rooted in fraudulent and predatory practices.

5. Written confirmation of all corrective actions taken.

This matter requires urgent attention. If I do not receive a satisfactory response within 30 days, I will escalate the matter further with the Consumer Financial Protection Bureau ( CFPB ), Federal Trade Commission ( FTC ), Department of Housing and Urban Development ( HUD ), and consider legal action.

Please respond in writing to the address listed above. Thank you for your immediate attention to this matter. 
Sincerely, XXXX XXXX

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