Consumer complaint received 2026-01-26 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Interest rate
Company: SELECT PORTFOLIO SERVICING, INC.
State: MA

Complaint narrative:
CFPB Complaint Improper Loss Mitigation Handling and False Withdrawal by Select Portfolio Servicing : Company : Select Portfolio Servicing , Inc. ( SPS ) Loan Number : XXXX Property Address : XXXX XXXX XXXXXXXX XXXX, XXXX, MA XXXX Borrowers : XXXX XXXX XXXX and XXXX XXXX XXXX XXXX XXXX SPS now claims full evaluation occurred ; however, the modification denial relies on an unspecified servicing agreement restriction and SPS still falsely asserts a borrower-initiated withdrawal. are submitting this complaint regarding Select Portfolio Servicings improper handling of our loss mitigation request, including failure to evaluate loan modification, improper file closure, and falsely claiming that we withdrew our loss mitigation application.

Background Our household experienced a permanent, non-recoverable reduction in income, making our existing mortgage payment unaffordable. We are seeking home retention through loan modification.

SPS is the servicer of our loan. SPS did not originate the loan and does not own it.

Timeline and Issues XX/XX/year> : We submitted written correspondence requesting loss mitigation and loan modification review based on permanent income reduction. We specifically stated that a payment deferral would not resolve our long-term affordability issue. 

XX/XX/year> ( multiple letters ) : SPS acknowledged receipt of our correspondence but improperly reclassified it as a general inquiry, refusing to acknowledge loss mitigation application status or identify the loan investor. 

Subsequent correspondence : SPS evaluated only a payment deferral, which we declined because it did not address long-term affordability. SPS then : denied the deferral, closed the loss mitigation file, and returned the account to normal servicing. 

XX/XX/year> : SPS issued correspondence stating that our loss mitigation request was withdrawn by us on XX/XX/year>. This statement is false. At no time did we withdraw our request for loss mitigation. 

Violations and Concerns Select Portfolio Servicing : Failed to evaluate our application for loan modification despite a permanent hardship Improperly closed the loss mitigation file without an affirmative withdrawal Falsely characterized our declination of a deferral as a withdrawal of all loss mitigation Failed to identify the loan investor Repeatedly directed us to phone calls instead of providing required written determinations Declining one loss mitigation option does not constitute withdrawal of a loss mitigation application under RESPA / Regulation X ( 12 CFR 1024.41 ).

Requested Resolution We request that SPS be required to : Acknowledge that our loss mitigation application was not withdrawn Reopen and reinstate the loss mitigation file Evaluate our application for loan modification and all available home-retention options Identify the loan investor/owner Provide all required written determinations under Regulation X Attachments We are attaching : Our written loss mitigation requests SPS acknowledgment letters SPS deferral denial letter SPS letter falsely stating our request was withdrawn Copies of our Notices of Error We respectfully request CFPB assistance in resolving this matter. 

XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation