Consumer complaint received 2025-08-24 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: SELECT PORTFOLIO SERVICING, INC.
State: FL

Complaint narrative:
CFPB COMPLAINT - SELECT PORTFOLIO SERVICING REFUSAL Date of Incident : XX/XX/year> Servicer : Select Portfolio Servicing , Inc . 
Account Number : [ withheld for privacy ] Customer Name : XXXX XXXX | Estate of XXXX XXXX XXXX Address : XXXX XXXX XXXX XXXX XXXX XXXX, FL XXXX SUMMARY OF COMPLAINT : Select Portfolio Servicing ( SPS ) is refusing to implement a standard industry practice of adding an escrow shortage to the back end of my mortgage loan, instead forcing me into an unaffordable payment situation that threatens my ability to remain in my home. 

DETAILED TIMELINE : XX/XX/year> : SPS sent letter offering XXXX escrow shortage spread option after declining loan modification. 
XX/XX/year> : I sent written request accepting the XXXX spread. 
XX/XX/year> : SPS representative confirmed my XX/XX/XXXX request had " never been addressed ''. 
XX/XX/year> : SPS finally processed XXXX spread, reducing payment from {$2800.00} to {$2600.00} ( still $ XXXX above what I can afford ). 
XX/XX/year> : SPS admitted " due to an error, SPS failed to respond to these concerns in our enclosed previous Response Letter sent on XX/XX/year> ''. 
XX/XX/year> : I provided feedback in my closed CFPB complaint requesting reasonable alternative ( add shortage to loan balance ). 
XX/XX/year> : SPS sent Acknowledgment Letter stating they " received your recent inquiry ( ies ) on XX/XX/year> '' and would provide response within XXXX days ( despite no direct communication from me on that date ). 
XX/XX/year> : I uploaded letter to SPS portal stating their XXXX response requirement demonstrates they still don't understand the situation. 

PRIOR CFPB COMPLAINT : XX/XX/year> : I filed a CFPB complaint ( Case # XXXX ) requesting the same resolution ( adding escrow shortage to loan balance ). This complaint was closed without SPS providing an acceptable solution, which is why I am filing this follow-up complaint with additional evidence. 

The fact that SPS failed to resolve this issue through the previous CFPB process demonstrates a pattern of non-responsiveness to reasonable customer requests and regulatory oversight. 

PHONE CALL DOCUMENTATION - XX/XX/year> Time : XXXX PM EST Recording Consent : Obtained from both representatives Call Length : Approximately XXXX minutes XXXX Representative - XXXX ( ID # XXXX ) : When I explained my request to add the escrow shortage to the back end of my mortgage, XXXX stated : " So that is not something that we can do. We don't move the shortage to the back of the mortgage. '' Supervisor - XXXX ( Extension XXXX ) : After escalating, XXXX stated : " No XXXX  is just able to take that negative escrow balance in place on the back end of the account. We tried with the workout review. We, you know, did the spread over XXXX months. That's the best that we can do at this point. And there's nothing that no one here, not a supervisor or a manager would just be able to spread. It goes through the regular channels of our escrow, our loss mitigation process. And if those things do not work out, if the best we can do is spread over XXXX months and if a modification work out review was declined for any reason, that is all we can do. '' When I requested to speak with a manager above her level, XXXX claimed : " No managers are available at this time. '' THE PROBLEM WITH SPS 'S RESPONSE : XXXX. SPS Contradicts Its Own Stated Mission : In multiple letters, SPS has stated its commitment to home retention " for customers who are experiencing temporary or permanent hardship. '' However, their refusal to implement standard industry accommodation practices directly contradicts this stated commitment and threatens my ability to remain in my home. 
XXXX. Standard Industry Practice Denied : Adding escrow shortages to loan balances is routine practice across the mortgage industry. SPS 's blanket refusal suggests either : o Inadequate training of their representatives o Deliberate policy to force customers into unaffordable payments o Systemic failure to offer reasonable accommodation options XXXX. Contradictory Statements : XXXX claimed this " goes through regular channels of our escrow, our loss mitigation process '' but also said " no one here... would just be able to '' do it. This suggests confusion about their own processes. 
XXXX. Financial Hardship Ignored : o I can afford and have consistently paid : $ XXXX o SPS demands XXXX even with XXXX spread ) : $ XXXX o Monthly shortfall : {$1200.00} ( {$14000.00} annually ) XXXX. Customer Service Failures : o XXXX identical boilerplate responses to different specific requests o No managers " available '' when customer requests escalation o Representatives claiming absolute inability to perform standard industry practices REQUESTED RESOLUTION : I am requesting CFPB intervention to require SPS to : XXXX. Add the escrow shortage to the back end of my mortgage loan ( standard industry practice ) XXXX. Allow me to continue paying $ XXXX ( amount I can afford and have consistently paid ) XXXX. Provide written confirmation of the new arrangement within XXXX business days XXXX. Train their representatives on standard industry accommodation practices SUPPORTING EVIDENCE : Recorded phone conversation from XX/XX/year> ( with consent ) Written correspondence showing months of requests Payment history demonstrating consistent {$1300.00} payments SPS boilerplate responses showing non-responsive customer service IMPACT ON CONSUMER : This situation threatens my ability to remain in my home. I am a responsible borrower who has made consistent payments and is requesting a standard industry accommodation. SPS 's refusal to implement this reasonable solution creates unnecessary financial hardship and potential foreclosure risk. 

The escrow shortage resulted from increased property taxes and insurance premiums beyond my control. Adding this shortage to my loan balance costs SPS nothing while allowing me to maintain stable housing and continue making payments. 

REGULATORY ACTION NEEDED : SPS 's blanket refusal to consider standard industry practices suggests a pattern that may affect other customers. I request CFPB investigation into : SPS policies regarding escrow shortage accommodations Training adequacy for customer service representatives Systemic barriers to reasonable loan modifications I am seeking resolution through regulatory intervention since direct negotiation with SPS has failed after months of attempts.

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