Consumer complaint received 2021-09-15 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA

Complaint narrative:
My complaint addresses the misleading information and bad faith business practices regarding my mortgage loan eligibility under the CARES Act perpetrated by my current mortgage loan servicer Select Portfolio Servicing , Inc. ( SPS ). I am the homeowner and the individual solely responsible for the mortgage loan. 

After receiving a letter from SPS dated XX/XX/XXXX which informed the ownership of my loan had been transferred to The XXXX XXXX XXXX XXXX XXXX XXXX XXXX, and another letter dated XX/XX/XXXX stating my mortgage loan is a Federally-Backed Mortgage under the CARES Act, SPS is now saying in their XX/XX/XXXX letter, while the account does fall within the definition of a federally-backed loan under the CARES Act as it was securitized by XXXX XXXX, it is not a XXXX XXXX loan and the COVID assistance options for XXXX XXXX loans are not applicable. 

SPS has since approved my mortgage loan for a three-month SPS Trail Modification starting XX/XX/XXXX. The monthly payment under this trial modification will be {$2900.00} which is a 143 % increase over my pre-pandemic monthly payment of {$1200.00}, and is 94 % of my current gross monthly income ( {$3100.00} ). This action leaves me with {$150.00} each month for all my essential household expenses ( food, utilities, transportation, etc. ). 

As what has happened to tens of millions of other Americans over the past 18 months, my income was reduced starting XX/XX/XXXX due to the Covid-19 pandemic. I contacted SPS in late XX/XX/XXXX to inform of my situation and was given a three-month forbearance under the CARES Act. I received two additional forbearances for six months, and one month for a total of ten months ( the XX/XX/XXXX SPS letter says I received a forbearance for a total of 12 months ). On XX/XX/XXXX, I contacted SPS and asked to the extend the forbearance for another three months, as is allowable under CARES. I was told my mortgage is a conventional loan and not covered under the CARES Act. After I found the SPS letters that stated otherwise, on XX/XX/XXXX I call SPS again to discuss the written documentation I had to the contrary. I was told by their Customer Care Expert that SPS is exempt from adhering to the rules and regulations under the CARES Act. 

On XX/XX/XXXX, I sent an email to SPS and attached the previous letters I received from them which clearly says my mortgage was owned by XXXX XXXX, and federally-backed by XXXX XXXX . It took three months for SPS to respond and when they did respond it was without any citation or reference under the CARES Act language to support their claim. Furthermore, the explanation SPS has given to explain why my mortgage loan does not fall under the auspices of the CARES Act is vague, confusing and riddled with inaccurate statements ( see SPS letter dated XX/XX/XXXX ). 

SPS claims I submitted an incomplete Retention Review Application/Assistance Review Application and the three-month SPS Trial Modification beginning XX/XX/XXXX is in accordance with applicable laws and investor eligibility rules. This is not true. I merely opened the online form, reviewed the information SPS was asking me to provide, and realized filling out such form was not a requirement under the CARES Act. I never hit the submit button on the SPS Application.

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