Consumer complaint received 2024-07-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Specialized Loan Servicing Holdings LLC
State: GA

Complaint narrative:
Specialized Loan Servicing ( now XXXX  ) services my mortgage & has an escrow account from which the Loss Draft Department releases funds for my home repair following a house fire. On XX/XX/year>, they allegedly mailed the second disbursement check for {$39000.00}, via standard USPS mail without even a tracking number. I called SLS Loss Draft at XXXX on XX/XX/XXXX to request a stop payment since the check had not arrived- they declined to do so. I called again on XX/XX/XXXX ( they were already closed ) & XX/XX/XXXX- on that day they agreed to the stop payment & said that as soon as it was effective they would reissue the check. I called on XX/XX/XXXX since there was no indication on their portal of a reissue & was told that there would be no reissue because the check had been cashed, that they had found that out on XX/XX/XXXX & had mailed me a copy of the check ( they could not email me a copy ), and that there was nothing I could do or provide to SLS that would get the funds reissued. They also said that the check had been deposited at XXXX, XXXX on XX/XX/XXXX by mobile deposit. Their implication was that they thought I had deposited this check myself or was somehow responsible for the situation. I was told all of these things by at least 2 CSRs on separate phone calls that day ( I called 4 times that day for details & then to have them talk to XXXX, to whom I had reached out myself ). My XXXX call that day to XXXXLS Loss Draft was a conference call with a XXXX CSR, in which call the SLS CSR either could not or would not give the name of the bank of issue. The XXXX CSR had already said that if XXXX could identify the account & confirm the fraud, then they would return the funds to the bank account from which it was issued, but they needed the cooperation of SLS. 
The check copy arrived later that day with no other communications included. I could easily read the issuing bank 's name as XXXX XXXX XXXX XXXX, NY. 
On XX/XX/XXXX, I called SLS Loss Draft again about this issue. With my threat of an attorney, whom I had already engaged, SLS Loss Draft placed a complaint for me, requested reissue of the check ( which " usually takes 3-5 business days, but could take longer with an investigation '' ), and an investigation. 
On XX/XX/XXXX, I received a voicemail stating that they were FedExing an affidavit for me to sign & notarize. The Affidavit of Unauthorized Endorsement or Altered Item for XXXXXXXX XXXX arrived XX/XX/XXXX, & was prefilled for me : it read that the " date ( I ) became aware of the unauthorized endorsement '' was " XXXX, '' answered " no '' to " Was the check lost or Stolen? '' & " no '' to " Did you file a claim with the US Postal Service. '' It also was left blank in some areas they were supposed to fill & unsigned where the " drawer '' was to sign & date. Since there were lies & information gaps on this affidavit, I sent it back to them red-lined for correction & included a letter giving them my attorney 's contact information & my refusal to sign the affidavit until it was corrected. 
I have yet to hear back from SLS.

It was their gross negligence that enabled the theft and fraudulent deposit of this check.

I have filed reports with USPIS & the local police department ( XXXX XXXX Police Department, XXXX XXXX, Ga ) & have filed a complaint with the XXXX XXXX XXXX I will soon file a report with the FTC.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation