Consumer complaint received 2025-11-20 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: SELECT PORTFOLIO SERVICING, INC.
State: WV

Complaint narrative:
Dear SPS Supervisory Review Department : This email serves as an URGENT formal request for immediate supervisory-level intervention and review of the above-referenced loan. We require action within five ( 5 ) business days to prevent further escalation. 
We are writing on behalf of the borrower, XXXX XXXX XXXX, regarding the significant regulatory failures surrounding her loss mitigation appeal and the subsequent illegal issuance of a Notice of Default. 
CRITICAL REGULATORY VIOLATIONS REQUIRING IMMEDIATE ACTION : Failure to Determine Appeal ( 12 CFR 1024.41 ( h ) ( 4 ) ) : A formal appeal of the denial was submitted on XX/XX/year>. SPS has failed to provide a written decision within the mandatory 30-day requirement. This is a continued violation of federal servicing rules.

Dual-Tracking Violation ( 12 CFR 1024.41 ( g ) ( 1 ) ) : Despite the pending, unresolved loss mitigation appeal ( submitted XX/XX/year> ), SPS issued a " Notice of Consumer 's Right to Cure Default '' dated XX/XX/year>. This initiation of foreclosure activity is a clear and direct violation of the Regulation X dual-tracking prohibition.

Processing Error ( 12 CFR 1024.35 ( b ) ( 2 ) ) : The initial application process was stalled and prejudiced by SPS staff repeatedly requesting documents already provided by the borrower, leading to unnecessary delays and a denial that failed to properly consider her ability to pay.

REQUESTED RESOLUTION : XXXX XXXX financial circumstances confirm she can fully afford the regular monthly payments. The hardship was temporary and has resolved. We request the immediate approval of a six-month forbearance to permanently cure the arrears. 
WE DEMAND CONFIRMATION OF THE FOLLOWING WITHIN 5 BUSINESS DAYS : A written decision on the appeal submitted on XX/XX/year>. 
Confirmation that all foreclosure activity, including the XX/XX/year>, Notice of Default, is immediately halted and officially rescinded, pending the supervisory review and resolution of the forbearance request.

A written determination regarding the requested 6-month forbearance.

A formal RESPA Notice of Error ( NOE ) detailing these errors is being sent concurrently via Certified Mail. We expect prompt compliance with all RESPA timelines. 
Date : XX/XX/year> Via Certified Mail and Email Select Portfolio Servicing , Inc . 
Attn : Notices of Error Department Email : XXXX RE : FORMAL NOTICE OF ERROR ( NOE ) PURSUANT TO 12 CFR 1024.35 Borrower : XXXX XXXX XXXX Loan Number : XXXX Property : XXXX XXXX XXXX XXXX XXXX XXXX, WV XXXX Dear SPS Notices of Error Department : This letter constitutes a formal Notice of Error ( NOE ) pursuant to the Real Estate Settlement Procedures Act ( RESPA ) and its implementing regulation, 112 CFR 1024.35. We assert that SPS has committed the following specific errors in the servicing of the above-referenced mortgage loan : Specific Errors in Loss Mitigation Processing and Dual Tracking Regulation Citation Servicer Error Basis for Error 12 CFR 1024.41 ( h ) ( 4 ) Failure to Provide Written Appeal Determination A formal appeal of the loss mitigation denial was submitted on XX/XX/year>. SPS has failed to provide a written determination on this appeal within the required 30-day period. This is a failure to properly process and review borrower information, as required by 12 CFR 1024.35 ( b ) ( 2 ).

12 CFR 1024.41 ( g ) ( 1 ) Initiation of Foreclosure While Appeal is Pending ( Dual Tracking Violation ) On XX/XX/year>, SPS issued a Notice of Consumer 's Right to Cure Default ( a first notice or filing required by state law for foreclosure ), despite the pending, unresolved loss mitigation appeal submitted on XX/XX/year>. This constitutes a direct violation of the prohibition against starting or proceeding with foreclosure while a timely appeal is pending.

12 CFR 1024.35 ( b ) ( 2 ) Error in Servicer 's Processing of Borrower Information During the initial application review, SPS staff repeatedly requested documents that had already been provided by the borrower, leading to unnecessary delays, confusion, and a delayed determination. This constitutes an error in the servicers processing and handling of loss mitigation documentation.

12 CFR 1024.41 ( c ) ( 1 ) ( ii ) Failure to Exercise Due Diligence in Evaluation The initial application denial, which rejected all home retention options, failed to properly consider the borrowers updated financial stability and the temporary nature of the hardship. The denial reason is inconsistent with the borrower 's demonstrated affordability of normal payments.

Required Action to Correct Errors ( 12 CFR 1024.35 ( e ) ) Pursuant to federal law, we require SPS to take the following corrective actions to resolve the errors cited above : 1. Immediate Appeal Resolution : Provide a definitive, written determination of the appeal submitted on XX/XX/year>. 
2. Cessation of Collection/Foreclosure : Immediately cease all collection, default, and foreclosure activities, including rescinding the XX/XX/year>, Notice of Consumer 's Right to Cure Default .

3. Approval of Forbearance : Approve the requested six-month forbearance as the most viable and appropriate loss mitigation option to resolve the temporary delinquency.

We require a full written resolution of these errors within thirty ( 30 ) business days. Confirmation of receipt of this NOE is required within five ( 5 ) business days. 
Sincerely, XXXX XXXX XXXX Claims & Compliance Manager, XXXX XXXX XXXX  On behalf of XXXX XXXX XXXX Contact : XXXX / XXXX XXXX

Company response to consumer: Closed with explanation