Consumer complaint received 2025-11-03 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: SELECT PORTFOLIO SERVICING, INC.
State: CA

Complaint narrative:
XX/XX/XXXX RE : Loan Number XXXX After successfully managing a Forbearance Agreement ( XX/XX/XXXX XX/XX/XXXX ) I am appealing a loan modification agreement approval dated XX/XX/XXXX for the following reasons per the recommendation of a Select Portfolio agent recorded conversation dated XX/XX/XXXX and/or XX/XX/XXXX ombudsman recorded conversation. After assessing a projected payment with an interest rate of 6.875 % of which current market pricing conditions do not warrant such a price model or interest as explained to both agents via a recorded line ( s ). Furthermore, such an offer is considered predatory in merit after presenting a loan modification offer to a local mortgage consultant. 

As a California resident the median interest rate for a conforming XXXX fixed mortgage ranges between 5.50 % - 5.875 % and/or the Federal Reserve Wednesday XX/XX/XXXX reduced the overnight borrowing rate .25 % basis points. Additionally and after reviewing terms, it is to my understanding current balance will become due or mature in XXXX which mirrors previous a modification agreement that went into effect in XXXX and per a most recent and recorded conversation dated XXXX our loan can be brought current to which will allows to maintain our current 4.125 % interest rate. The qualifying question ( s ) or what we are asking for is to move past due balance and maintain a 4.125 % XXXX term, why cant this be accomplished? Select Portfolio Servicing can in fact review terms with our investor ( XXXX XXXX ) but has elected to reprice more aggressively? 

We are requesting for the Past Due principal balance be added to back end of mortgage and to resume payments in the amount of XXXX ( i.e., XXXX XXXX Forbearance Offer ) at an interest rate of 4.125 %. It is to my understanding that we can retain our current interest rate of 4.125 % which makes our mortgage payment significantly affordable. We would be obliged to know how forbearance payments were applied because a projected impound account seems to be quite excessive. 

Our primary objective is to preserve our home in the most affordable way possible, for an interest rate of 6.875 % does not mirror todays interest rate matrix with respect to conforming loan limits via State of California and may be in error. I am aware XXXX XXXX XXXX is our investor and/or interest rates via XXXX XXXX XXXX Bank website for a XXXX conventional mortgage is 5.875 % as of Friday XX/XX/XXXX which do not take into consideration future Federal Reserve rate cuts due to poor labor conditions and a slowing economy or moderate to uncertain economic outlook. In that, I attached a mortgage rate sheet which reflects XXXX mortgage rates as allow as 5.5 % ( Pages 5 - 8 ). 

In conclusion, we are asking both underwriting and management to reconsider or honor current loan terms which is 4.125 % XXXX Fixed and successfully paid three months of payments which can be applied towards property taxes. We would be obliged if our payment is not to exceed XXXX which includes XXXX. Attached you will find several pricing models in relation to today market conditions after it was disclosed in the event there is an error per an SPS customer care Liasion we were advised to submit any documentation necessary to validate our concerns. 

XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation