Consumer complaint received 2026-06-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: SELECT PORTFOLIO SERVICING, INC.
State: NJ

Complaint narrative:
OFFICIAL CFPB CONSUMER COMPLAINTDate of Submission : XX/XX/XXXX, XXXX : XXXX XXXX Address : XXXX XXXXXXXX XXXXCompany Complained Against : Select Portfolio Servicing , Inc. ( SPS ) Loan Account Number : XXXX : Mortgage Loss Mitigation / Foreclosure AvoidanceStatutory Violations : Real Estate Settlement Procedures Act ( RESPA ) Regulation X ( 12 C.F.R. 1024.35 ), Equal Credit Opportunity Act ( ECOA ) 15 U.S.C. 1691, and CFPB Fair Servicing Standards.COMPLAINT NARRATIVE : To Whom It May Concern at the Consumer Financial Protection Bureau : I, XXXX XXXX, am filing this formal consumer complaint against Select Portfolio Servicing, Inc. ( SPS ) for predatory escrow accounting manipulation, bad-faith lender-placed insurance evaluation practices, egregious internal data failures, and direct violations of RESPA Regulation X ( 12 C.F.R. 1024.35 ) and ECOA credit standards regarding loan account number XXXXSPS has weaponized automated accounting errors to engineer back-to-back loss mitigation denials on XX/XX/XXXX and XX/XX/XXXX. I request immediate Bureau intervention on this day, XX/XX/XXXX, to compel SPS to execute a manual supervisory audit based on the following severe compliance failures:1. Predatory Escrow Engineering & Exploitation of Geographical Environmental RestrictionsSPS engaged in predatory servicing by calculating a hypothetical Lender-Placed Insurance policy charge into my account metrics. My owner-occupied, 2-family property located in XXXX XXXX, XXXX , is situated in an environmentally restricted area near a river. I provide documentary proof from XXXX XXXX XXXX explicitly denying standard hazard coverage because " The dwelling is located in a restricted area. '' Because of this geographical barrier, I was rejected by three standard carriers before securing specialized placement.Instead of recognizing this environmental restriction, SPS weaponized a temporary notification period to engineer an inflated escrow baseline. My escrow charge skyrocketed from {$950.00} in XX/XX/XXXX to {$1700.00} in XX/XX/XXXX, causing a groundless {$760.00} monthly inflation and forcing my regular monthly statement payment field to jump to {$3100.00}. SPS used this false, inflated payment amount to trigger automated program denials on XX/XX/XXXX and XX/XX/XXXX, based on simulated lack of affordability.This issue is entirely cured : On XX/XX/XXXX, I successfully bound and paid in full a specialized policy through XXXX XXXX XXXX XXXX XXXX with an annual premium of {$4200.00}. SPS 's proprietary tracking portal officially reflects this policy as Processed Successfully. As proven by SPSs notice dated XX/XX/XXXX, the servicer confirmed voluntary coverage acceptance and lender-placed cancellation effective XX/XX/XXXX, with a structural coverage amount of {$430000.00}. Yet, SPS continues to distort my loss mitigation file by demanding a retro-active {$250.00} fee for the lapse period caused by the environmental rejections and refuses to clear the active escrow inflation from my underwriting profile.2. Severe Lack of Data Integrity : Portal vs. Paper DiscrepancySPS is presenting simultaneous, wildly contradictory financial data across its consumer-facing platforms, preventing proper account reconciliation : SPS Active Online Portal ( Updated XX/XX/XXXX ) : Demands a regular monthly payment field of {$2300.00} and sets the total delinquency to cure at $ XXXX Printed Monthly Billing Statement ( Due XX/XX/XXXX ) : Demands a monthly payment field of {$2800.00} and claims an un-reconciled total balance due of {$45000.00}, incorporating {$5000.00} in accumulated corporate fees.There is an unconscionable data discrepancy of {$1300.00} between what SPS tells me to pay online versus what they print on paper, with a sudden portal update occurring immediately following my loss mitigation appeal. This data corruption caused their automated Net Present Value decision engine to execute calculations using completely corrupted account parameters.3. Systematic Understatement of Self-Employed Gross Income ( XXXX XXXX XXXX ) SPS 's automated underwriting models locked my household gross monthly income at an inaccurate baseline of {$3700.00} in XXXX XXXX XXXX. My true verified gross monthly household income is {$6700.00}. SPS violated credit standards by : Improperly deducting baseline utility contributions from my {$5000.00} gross rental revenue streams verified via three active tenancy agreements including a family lease for {$2300.00}, a long-term second-floor tenant with separate meters for {$1800.00}, and a room rental for $ XXXXImproperly deducting a historical {$350.00} transit overhead from my {$1000.00} monthly caregiving allocation paid directly by my son for 100 % home-based care inside the property. For underwriting transparency, even if SPS dynamically maintains a historical {$350.00} vehicle expense field from my initial application baseline, my gross household economy remains heavily stabilized and fully qualified. The subtraction of this baseline expense does not alter program eligibility, as my corrected Debt-to-Income ratio remains mathematically optimal and fully compliant with investor guidelines.Violating ECOA credit evaluation standards by failing to apply the mandatory federal 125 % gross-up factor to my verified {$620.00} XXXX public assistance allotment, which legally equals XXXX. Escrow Account Agreement Subversion and Refusal to ExecuteSPS issued a customized Escrow Account Agreement pre-printed under my name, XXXX XXXX. The document instructs the borrower to return the signed agreement along with the private policy invoice to advance voluntary premiums. However, SPS completely subverted its own administrative protocol. While issuing this agreement, SPS simultaneously executed automated program denials on XX/XX/XXXX and XX/XX/XXXX, utilizing uncorrected, highly inflated lender-placed data. I refuse to sign or execute this specific escrow agreement while the accounting records remain corrupted. I will formally sign an updated escrow schedule once my monthly baseline payment is manually adjusted to my true requirement.5. XXXX XXXX and XXXX XXXX XXXX XXXXOur temporary family medical crisis from XX/XX/XXXX has completely concluded. The household economy of XXXX XXXX is stabilized. By combining my contractual Principal & Interest of {$1300.00} with my true, verified corrected Escrow of {$1200.00}, my sustainable monthly payment is exactly {$2500.00}. Against my real verified gross income of {$6700.00}, this establishes an optimal 38.3 % Debt-to-Income ratio, fully satisfying home retention guidelines. Furthermore, the loan principal balance is {$290000.00}, heavily protected by an SPS APEX valuation of {$630000.00}, leaving a highly conservative 46.3 % LTV ratio and a massive {$330000.00} equity cushion against asset loss.Relief Requested : I have transmitted a formal statutory Supplemental Notice of Error under 12 C.F.R. 1024.35 and Qualified Written Request to SPS. I explicitly instructed them that this data is a supplemental filing to support, merge with, and NOT replace my active loss mitigation appeal. However, phone agents refuse to route my file for manual supervisory review. I respectfully request that the CFPB compel Select Portfolio Servicing, Inc. to : Enforce an immediate administrative stay on all foreclosure tracking escalations or sale scheduling under dual-tracking restrictions while this active dispute and open appeal are reviewed.Force a complete manual re-underwrite by a senior supervisor to strip out the fraudulent escrow overcharges and apply the correct income data to XXXX XXXX XXXXEvaluate my file for a standard Deferment Plan to safely transfer the true arrears and fees to the maturity date of XX/XX/XXXX as a non-interest-bearing balloon, locking my sustainable monthly payment at exactly {$2500.00}, for which I am liquid and ready to execute the first payment immediately.Sincerely, XXXX XXXX ValeraElectronically Signed under the Federal XXXX XXXX : XXXX : XXXX : XX/XX/XXXX XXXX

Company response to consumer: Closed with explanation