Consumer complaint received 2024-11-23 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA

Complaint narrative:
Select Portfolio Servicing ( SPS ), the servicer for my mortgage loan, refuses to acknowledge a XXXX mortgage loan assumption and modification of my mortgage note performed by the prior servicer, XXXX, under which the mortgage note was modified to make me ( B ) the only borrower and to formally release my ex-husband ( XXXX ) from all obligations under the note or the mortgage loan. 

Instead, SPS has insisted on adding my ex-husband ( XXXX ) as a co-borrower on the loan six years after the assumption because he was a co-borrower when the loan was originated in XXXX. SPS refuses to acknowledge XXXX formal modification of the note and the loan to remove XXXX  as a co-borrower in XXXX, despite being provided with those documents multiple times. 

Specifically, the document that modified my note and loan to remove XXXX as a co-borrower was the XX/XX/XXXX Release of Obligor, executed by XXXX before a notary public on behalf of XXXX trust and trustee holding the loan ( Trust/Trustee ), providing that : [ Trust/Trustee ] is the holder of a mortgage note executed by [ XXXX  and B ]... dated XX/XX/XXXX... and a real estate mortgage securing said mortgage note... 

Mortgagor [ XXXX XXXX has sold and conveyed the real estate described in and covered by the mortgage to [ B ], hereinafter referred to as Purchaser ; Purchaser has assumed all of the obligations and liabilities imposed by the note and mortgage ; and Mortgagor has requested that he be released from further liability for the payment of the indebtedness and other charges payable on and under the note and mortgage, and the Purchaser [ B ] has consented and agreed to such release ; For value received, **the undersigned releases Mortgagor from further liability for the payment of the indebtedness and other charges payable on and under the note and mortgage** ; PROVIDED, that nothing herein shall... be deemed to release any other of the obligors of the note and mortgage My loan was service transferred to SPS in XX/XX/XXXX. The XX/XX/XXXX Hello Letter correctly listed me as the only borrower. SPS correctly directed all statements, correspondence, and tax statements to me only ( not to me and XXXX XXXX for the first four years that it serviced the loan. While my request for financial assistance was pending in XX/XX/XXXX, SPS suddenly and erroneously added XXXX as a borrower on my loan, without any notice, request, or authorization, and started reporting XXXX as a borrower on the loan to all the major credit agencies. 

Despite my many attempts to get SPS to correct the error and remove XXXX from my account, SPS refused time and time again, asserting that only the XXXX loan documentation determined the borrowers on the loan, and refusing to acknowledge that my note and loan were modified by the XXXX Release of Obligor and assumption process by XXXX. 

RESPA VIOLATIONS 1. SPSs unauthorized addition of B as a borrower on the loan is an error relating to the servicing of a borrowers mortgage loan under 12 C.F.R. 1024.35 ( b ) ( 11 ).

2. SPSs unauthorized consideration of a non-borrowers information in connection with my request for loss mitigation due to hardship is a failure to provide accurate information to a borrower regarding loss mitigation options and foreclosure, as required by 1024.39, under 12 C.F.R. 1024.35 ( b ) ( 7 ). 

3. SPSs failure to correct this error after multiple calls, emails, and secure messages demonstrates that SPSs policies and procedures violate 12 C.F.R. 1024.38 ( a ) because they are not reasonably designed to ensure that SPS can achieve the objectives set forth in 12 C.F.R. 1024.38 ( b ) ( 1 ), specifically, to : ( i ) Provide accurate and timely disclosures to a borrower as required by this subpart or other applicable law ; ( ii ) Investigate, respond to, and, as appropriate, make corrections in response to complaints asserted by a borrower; and ( iii ) Provide a borrower with accurate and timely information and documents in response to the borrowers requests for information with respect to the borrowers mortgage loan. 

4. SPSs failure to detect its employees unauthorized addition of a borrower to the Loan demonstrates that SPSs policies and procedures violate 12 C.F.R. 1024.38 ( a ) because they are not reasonably designed to ensure that SPS can achieve the objectives set forth in 12 C.F.R. 1024.38 ( b ) ( 3 ), specifically, to : ( i ) Provide appropriate servicer personnel with access to accurate and current documents and information reflecting actions performed by service providers ; ( ii ) Facilitate periodic reviews of service providers, including by providing appropriate servicer personnel with documents and information necessary to audit compliance by service providers with the servicer 's contractual obligations and applicable law ; and ( iii ) Facilitate the sharing of accurate and current information regarding the status of any evaluation of a borrower 's loss mitigation application and the status of any foreclosure proceeding among appropriate servicer personnel, including any personnel assigned to a borrower 's mortgage loan account as described in XXXX and appropriate service provider personnel, including service provider personnel responsible for handling foreclosure proceedings.

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