Consumer complaint received 2024-06-24 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: SELECT PORTFOLIO SERVICING, INC.
State: AZ

Complaint narrative:
I contacted SPS in XXXX to make them aware of a series of escrow miscalculations they made. They included the twice annual tax payment on a parcel of land that I do not own and one that they have never serviced. 

I clearly indicated the three calculations that were impacted and how each inflated my monthly statements beyond the amount actually due. I also indicated the 13 months ( XXXX, XXXX through XX/XX/XXXX ) that SPS had overcharged, over-collected and misapplied the funds. 

The erroneous inclusion of tax inflated their estimation of a shortage entering XX/XX/XXXX. It also inflated their Regular Escrow Payments. It also inflated the Reserve Requirements, or cushion. 

As the significant overcharge has been collected and misapplied for 13 consecutive months, I asked that my XXXX statement reflect the correct amount due. We discussed the fact that SPS had a 30-day window to research and respond with evidence that they did not overcharge or reimburse the overage. I told them either a check or a credit to my XXXX statement would suffice. 

SPS has not called or emailed with any information regarding the remedy. I have reached out to SPS via phone in XXXX, XXXX, XXXX and XXXX. I emailed them in XXXX and XXXX. 

The only contact from SPS was a letter in XXXX apologizing for the delay and indicating they needed more time and a notice on my front door that they could not get a hold of me about late payments. 

Both of those concern me. I have been in touch monthly, so the front door notice seems disingenuous. And an apology four months into a process that was required to be completed in 30 days also seems unacceptable. 

I was quoted a week, 7-10 business days and 30 days during various calls over the last five months. I have repeatedly stated that I do not believe, after 13 months of falsely inflated statements, that I should be expected to continue paying the incorrect monthly amount. I made it clear that the reimbursement due to me was significant and would be a large portion of XXXX payment, at minimum. 

I was instructed at one point by SPS to do my own calculation of what I believed the correct initial shortage, monthly tax consequence, cushion and previously misapplied payments and make a hand written explanation with my XXXX payment. I declined and stated that confirming that I have no affiliation with the wrongfully included parcel is a task that can be completed in minutes, as is the determination of the overcharges and reimbursement due. I opted to await the corrected statements from SPS. 

My expectations remain the same from XXXX. I do not think I should be expected to pay an inflated monthly total for a XXXX consecutive month ( or beyond ). I expect a correct monthly statement from XXXX and going forward. I expect a reimbursement check ( though now with fair interest and penalty considerations for funds that have been wrongfully collected for over 17 months ). I also expect no negative impact financially or to my credit score with any XXXX missed or late payments until this is resolved. 

I discovered the SPS error. I brought it to their attention in a timely manner and with complete and thorough detail. I have received essentially nothing but off-handed excuses and frivolous target dates. I am awaiting long overdue corrective action from SPS. For them to indicate that I am late on payments they know are incorrect, and have been for 17 months, is deplorable. The payments could have been made if fixing this relatively easy issue was handled in a reasonable timeframe.

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