Consumer complaint received 2025-03-22 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: SELECT PORTFOLIO SERVICING, INC.
State: LA

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX Louisiana XXXX ( XXXX ) XXXX XXXX XX/XX/XXXX Subject : Complaint Against Select Portfolio Servicing ( SPS ) for Mortgage Servicing Violations and Unfair Practices To CPFB, I am submitting this formal complaint regarding Select Portfolio Servicing, Inc. ( SPS ) for engaging in unfair and deceptive mortgage servicing practices that have caused significant financial and personal hardship. My property, located at : XXXX XXXX XXXX XXXX XXXX 
Account Number : XXXX suffered severe fire damage on XX/XX/XXXX, rendering it uninhabitable. Despite my efforts to remediate the damages and secure financial relief, SPS has failed to fulfill its obligations as a mortgage servicer, violating consumer protection laws. 

Summary of Violations and Unfair Practices : Failure to Notify Trustee of Property Damages : SPS is servicing my mortgage under the Home Equity Asset Trust XXXX, yet it has failed to notify the trustee of the extensive property damage and hazardous conditions resulting from the fire. 

Environmental testing confirmed the presence of asbestos and dioxins, yet SPS has not taken steps to ensure compliance with property protection requirements. 

Wrongful Denial of a Repayment Modification Agreement ( XXXX ) : I applied for an XXXX due to documented financial hardship, including the fire-related displacement, Additional Living Expenses ( ALE ), and my divorce filed in XX/XX/XXXX. 

SPS wrongfully denied my request, claiming I am not employed, despite the fact that I have been self-employed since XXXX, including at the time I obtained my mortgage. 

This denial contradicts fair lending and mortgage servicing regulations that recognize self-employment as a valid income source for mortgage repayment. 

Failure to Act in the Best Interest of the Borrower and the Trust : As a mortgage servicer, SPS has a duty to act in good faith and in compliance with federal laws. 

By failing to notify the trustee of the damages and denying my XXXX request on improper grounds, SPS has placed both my financial stability and the value of the trusts assets at risk. 

Requested Action from the FTC : I am requesting that the Federal Trade Commission investigate SPS for its deceptive and unfair practices, including : Compelling SPS to notify the trustee of the full extent of my property damages. 

Enforcing fair lending and servicing standards to prevent wrongful denial of XXXX requests based on self-employment status. 

Reviewing SPSs compliance with federal mortgage servicing laws to ensure borrowers are not unfairly denied access to financial relief. 

Supporting Documentation : I have enclosed the following documents as evidence of my claims : Environmental test results confirming asbestos and dioxin contamination. 

My XXXX request and SPSs denial notice. 

An estimate for asbestos remediation. 

Documentation of my ongoing hardship and relocation expenses. 

Conclusion : SPSs actions are causing substantial financial and emotional distress. Their failure to comply with federal regulations and fair lending standards must be addressed. I urge the FTC to investigate this matter and take necessary enforcement actions against SPS to ensure compliance with consumer protection laws. 

Please confirm receipt of this complaint and provide information on any next steps regarding your investigation. 

Sincerely, XXXX XXXX

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