Consumer complaint received 2026-01-24 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: Selene Holdings LLC
State: NM

Complaint narrative:
To Whom It May Concern, I am submitting this complaint regarding my mortgage servicer, Selene Finance, for failure to engage in good-faith loss mitigation efforts and for offering a loan modification that is not reasonably sustainable, in violation of federal mortgage servicing standards. 

I defaulted on my mortgage during the COVID-19 pandemic due to underemployment. Shortly thereafter, my wife XXXX XXXX XXXX XXXXXXXX. Although she attempted to return to work, she was unable to maintain employment due to lasting XXXX XXXX  She was also denied unemployment benefits. These hardships were involuntary, well documented, and materially affected our household income. 

My wife requires safe and stable housing due to her XXXX XXXX. We have lived in this home for more than 25 years and have consistently maintained it in good condition. I have never sought to avoid my mortgage obligation. Rather, I have repeatedly requested a fair and sustainable resolution that allows continued payment while preserving housing stability. 

Selene Finance offered a loan modification with a monthly payment of approximately {$2000.00}. Based on my current income and verified expenses, this payment is not affordable and would inevitably result in re-default. I clearly communicated that I can afford a monthly payment of {$1100.00}. While difficult, this amount is achievable and sustainable. 

Despite this, Selene Finance has refused to meaningfully consider an affordable option and continues to insist on a payment amount that exceeds my reasonable ability to pay. I believe this conduct violates the intent and requirements of the Real Estate Settlement Procedures Act ( RESPA ) and its implementing regulation, Regulation X ( 12 C.F.R. 1024 ).

Specifically : Under 12 C.F.R. 1024.41, servicers are required to exercise reasonable diligence in reviewing borrowers for loss mitigation options and must evaluate borrowers for all options for which they may be eligible. 

Regulation X further requires servicers to engage in good-faith loss mitigation efforts and prohibits practices that merely delay foreclosure while offering options that are predictably unsustainable. 

Offering a modification that the servicer knows, or should know, is unaffordable undermines the purpose of loss mitigation and may constitute a constructive denial of meaningful assistance. 

I have acted in good faith throughout this process. I am not requesting a handout, forgiveness of debt, or preferential treatment. I am requesting a lawful, sustainable modification that reflects my financial reality. I have also expressed willingness to consider alternative structures, including a balloon payment at the end of the loan term, if that would allow for an affordable monthly payment. 

Additionally, I am fully willing to pursue any available federal, state, or local housing assistance programs to support ongoing payment and ensure long-term housing stability. Selene Finance has not demonstrated meaningful engagement with these options. 

Given these facts, I respectfully request that the Consumer Financial Protection Bureau investigate Selene Finances servicing practices in my case and require them to conduct a lawful, good-faith evaluation of a sustainable loss mitigation option consistent with RESPA and Regulation X.

Thank you for your attention to this matter.To Whom It May Concern, I am submitting this complaint regarding my mortgage servicer, Selene Finance, for failure to engage in good-faith loss mitigation efforts and for offering a loan modification that is not reasonably sustainable, in violation of federal mortgage servicing standards. 

I defaulted on my mortgage during the COVID-19 pandemic due to underemployment. Shortly thereafter, my wife XXXX XXXX XXXX XXXXXXXX. Although she attempted to return to work, she was unable to maintain employment due to lasting XXXX XXXX  She was also denied unemployment benefits. These hardships were involuntary, well documented, and materially affected our household income. 

My wife requires safe and stable housing due to her XXXX XXXX We have lived in this home for more than 25 years and have consistently maintained it in good condition. I have never sought to avoid my mortgage obligation. Rather, I have repeatedly requested a fair and sustainable resolution that allows continued payment while preserving housing stability. 

Selene Finance offered a loan modification with a monthly payment of approximately {$2000.00}. Based on my current income and verified expenses, this payment is not affordable and would inevitably result in re-default. I clearly communicated that I can afford a monthly payment of {$1100.00}. While difficult, this amount is achievable and sustainable. 

Despite this, Selene Finance has refused to meaningfully consider an affordable option and continues to insist on a payment amount that exceeds my reasonable ability to pay. I believe this conduct violates the intent and requirements of the Real Estate Settlement Procedures Act ( RESPA ) and its implementing regulation, Regulation X ( 12 C.F.R. 1024 ).

Specifically : Under 12 C.F.R. 1024.41, servicers are required to exercise reasonable diligence in reviewing borrowers for loss mitigation options and must evaluate borrowers for all options for which they may be eligible.

Regulation X further requires servicers to engage in good-faith loss mitigation efforts and prohibits practices that merely delay foreclosure while offering options that are predictably unsustainable.

Offering a modification that the servicer knows, or should know, is unaffordable undermines the purpose of loss mitigation and may constitute a constructive denial of meaningful assistance. 

I have acted in good faith throughout this process. I am not requesting a handout, forgiveness of debt, or preferential treatment. I am requesting a lawful, sustainable modification that reflects my financial reality. I have also expressed willingness to consider alternative structures, including a balloon payment at the end of the loan term, if that would allow for an affordable monthly payment. 

Additionally, I am fully willing to pursue any available federal, state, or local housing assistance programs to support ongoing payment and ensure long-term housing stability. Selene Finance has not demonstrated meaningful engagement with these options. 

Given these facts, I respectfully request that the Consumer Financial Protection Bureau investigate Selene Finances servicing practices in my case and require them to conduct a lawful, good-faith evaluation of a sustainable loss mitigation option consistent with RESPA and Regulation X.

Thank you for your attention to this matter.

Company response to consumer: Closed with explanation