Consumer complaint received 2026-01-12 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: SELECT PORTFOLIO SERVICING, INC.
State: TX

Complaint narrative:
This complaint concerns Select Portfolio Servicings ( SPS ) submission of materially misleading and incomplete information to CFPB during my prior complaint ( CFPB Case # XXXX ) SPS falsely claimed compliance with RESPA/QWR requirements and improperly closed my Successor-in-Interest ( SII ) review after acknowledging receipt of my complete probate package, causing financial harm to my mothers estate property address XXXXXXXX XXXX XXXX XXXXXXXX TX XXXX As a result of SPSs conduct, the estate was forced to pay a payoff amount that has never been reconciled for escrow, insurance proceeds, prior-servicer errors, or overpayments. SPSs actions blocked the estates legal right to refunds, credits, and dispute resolution after payoff. 

Request : CFPB Supervisory Review/ Enforcement + Corrective Action Plan I dispute Select Portfolio Servicings ( SPS ) response as inaccurate, incomplete, and misleading. SPS claims it responded to my Qualified Written Request ( QWR ) and that no errors occurred ; however, SPSs own uploaded documents show it refused to investigate key issues, terminated successor rights, and failed to provide required reconciliations, which caused direct harm to my mothers estate.

1 ) RESPA/QWR NON-COMPLIANCE Document dump and refusal to investigate Law : 12 CFR 1024.35 ( Notice of Error ) and 12 CFR 1024.36 ( Request for Information ) What SPS was required to do SPS was required to investigate and provide a substantive, issue-by-issue response to each error/information request, including payoff accuracy, escrow accounting, and any credits/insurance proceeds impacting the balance. 
What SPS did ( their own words ) In SPSs XXXX XXXX, XXXX response packet, SPS states it is a servicer and attempts to disclaim responsibility for core issues by pointing to the Note/servicing role rather than answering the specific questions raised. 
Instead of providing the payoff methodology, escrow reconciliation at payoff, suspense/unapplied funds history, insurance proceeds trace, or prior-servicer validation, SPS uploaded a bundle XXXX generic materials ( e.g., Note/Deed, transfer notices, payment coupon forms and other standard disclosures ) rather than a complete QWR investigation and accounting. 
XXXX XXXX XXXX XXXX XXXX None Harm to the estate Because SPS did not provide a compliant investigation and accounting, the estate was harmed by : Inability to verify whether the payoff amount was correct, including whether credits or insurance proceeds should have reduced principal. 
Inability to confirm whether escrow funds were owed back to the estate at payoff ( surplus/overpayment ). 
Loss of standing and time : SPSs nonresponsive handling forced repeated follow-ups and delayed resolution while the estate was under pressure to close probate and sell. 

XXXX ) FAILURE TO INVESTIGATE MORTGAGE LIFE / XXXX / OPTIONAL INSURANCE IMPACTING THE LOAN BALANCE Law : 12 CFR 1024.36 ( requests for information ), and escrow/insurance servicing duties generally under Regulation X ( including 1024.17 as applicable to escrow administration ) What SPS admits in its own transfer notice SPSs own Notice of Servicing Transfer states that if the borrower had mortgage life or XXXX insurance or any other type of optional insurance, such services will not be continued after the transfer and the borrower should contact the insurer. 
XXXX XXXX None Why this is a servicing failure That notice confirms SPS was on notice that optional insurance may exist. A servicer can not refuse to investigate whether such insurance proceeds were payable/received and whether they should be credited to the loan balanceespecially after borrower death and a payoff event. 
Harm to the estate If mortgage-life/optional coverage existed, failure to investigate and trace proceeds could mean the estate paid funds that should have been covered, or paid more than necessary. 
This is direct financial harm : unnecessary payoff or missing credits/refunds. 

XXXX ) ILLEGAL TERMINATION / OBSTRUCTION OF SUCCESSOR-IN-INTEREST ( SII ) RIGHTS Law : Regulation X servicing policies and procedures for successors ( including 12 CFR 1024.38 ( b ) ( 1 ) ( vi ) and related CFPB successor-in-interest servicing requirements ) What SPSs own letters show ( timeline ) SPS opened the SII process and required documentation by a deadline . 
XXXX XXXX None SPS acknowledged receipt of the complete XXXX package on XX/XX/XXXX and stated it expected to complete the review within 30 days. 
XXXX XXXX None SPS then closed/withdrew the XXXX review XXXXating : We are not considering your request because the account was paid in full on XX/XX/XXXX. 
XXXX XXXX None Why this is unlawful and harmful Closing the XXXX review solely because the loan was paid blocks core successor rights, including the ability to : obtain complete accountings, receive and negotiate escrow refunds/surplus, pursue error resolution related to payoff accuracy, and pursue insurance proceeds/credits tied to the account. 
Harm to the estate SPSs closure of XXXX review after acknowledging the complete package prevented the estate from fully exercising its rights and XXXX have prevented recovery of estate funds owed ( escrow surplus/overpayments/credits/insurance proceeds ). 
It forced the estate into a paid loan = closed door trap despite unresolved accounting disputes. 

XXXX ) FAILURE TO PROVIDE A FINAL PAYOFF RECONCILIATION + ESCROW DISPOSITION Law : 12 CFR 1024.17 ( escrow administration ; where applicable ) and 1024.36 ( information requests ) What SPS provided instead SPS uploaded escrow analysis statements showing taxes/insurance payments and escrow transactions over time.

However, SPS did not provide a final reconciliation at payoff showing : XXXX XXXX None escrow balance as of payoff, whether an escrow surplus existed, whether a refund was issued, and a payoff ledger showing how the final payoff figure was computed ( principal, interest, fees, escrow, suspense/unapplied funds ). 
Harm to the estate Without payoff/escrow reconciliation, the estate can not confirm whether it is owed an escrow refund or whether charges/fees were improper. 
This creates direct financial uncertainty and potential loss of estate assets. 

PROPER RESOLUTION REQUEST ( WHAT CFPB SHOULD REQUIRE SPS TO DO ) I am requesting CFPB Supervisory Review and a written corrective action plan requiring SPS to : A ) Provide a complete QWR-compliant accounting package ( not a document dump ) Full life-of-loan transaction history ( including imported prior-servicer history ) with clear definitions of all codes. 
Suspense/unapplied funds ledger and disposition. 
Fee ledger ( assessment dates, reasons, reversals ). 
Payoff calculation worksheet for the payoff date ( principal + interest + fees + escrow adjustments ), including the methodology. 
Final escrow accounting at payoff : beginning escrow, disbursements, required cushion, ending escrow, and refund amount/date ( or explanation why none was issued ). 
B ) Insurance / optional coverage investigation and trace Written confirmation of whether any mortgage-life/disability/optional insurance was associated with the loan at transfer ( as referenced in the transfer notice ) and whether any claim/proceeds were payable/received ; if so, provide dates, amounts, and crediting to the loan balance. 
C ) Successor-in-Interest correction Reopen and complete the XXXX review record ( XXXX issue a formal successor determination retroactively ) so the estates rights are not extinguished by payoff and to allow dispute/claims processing. 
D ) Monetary correction Refund all monies owed to the estate ( escrow surplus, overpayments, misapplied payments, improper fees, and/or insurance proceeds credits ), with interest where applicable, and provide a written explanation of all corrections.

IMPACT STATEMENT SPSs actionsrefusal to investigate QWR issues, failure to provide payoff/escrow reconciliation, refusal to investigate insurance, and closure of successor review because the loan was paidcaused financial harm by potentially forcing the estate to pay amounts that may not have been owed and by obstructing recovery of funds owed to the estate ( including escrow surplus/overpayments/credits ). 

EXHIBIXXXX XXXX  EVIDENCE INDEX Select Portfolio Servicing, Inc. ( SPS ) Borrower : XXXX XXXX XXXX ( deceased ) Successor : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX. SPS refused to investigate QWR issues ( RESPA violation ) Document : SPS XX/XX/XXXX XXXX Response File : XXXX What SPS Admitted Evidence SPS is only a servicer and does not validate origination, forgiveness, or prior servicing SPS relied on the Note and generic servicing docs instead of investigating errors Violation : 12 CFR 1024.35 & 1024.36 Harm : Estate deprived of validated payoff, escrow, credits, and insurance accounting.

2. SPS admitted insurance existed but refused to investigate it Document : Notice of Servicing Transfer ( BOA SPS ) File : XXXX Evidence Transfer notice states mortgage life / XXXX or optional insurance existed Violation : XXXX XXXX XXXX, XXXX Harm : Estate XXXX have paid a debt already covered by insurance. 
XXXX. SPS closed the Successor-in-Interest review illegally Document : XXXX Acknowledgement + Closure File : XXXX Event Evidence XXXX opened and documents required SPS acknowledged receipt of complete SII package ( XX/XX/XXXX ) SPS closed XXXX solely because loan was paid Violation : 12 CFR 1024.38 ( b ) ( 1 ) ( vi ) Harm : Estate blocked from escrow refunds, insurance proceeds, and dispute rights.

4. SPS failed to provide escrow reconciliation at payoff Document : Escrow Analysis Statements File : XXXX Evidence Shows taxes & insurance paid but no final payoff escrow balance or refund Violation : XXXX XXXX XXXX Harm : Estate may be owed escrow surplus and was denied accounting.

5. SPS misrepresented compliance to CFPB Document : SPS XXXX Response File : XXXX Evidence SPS claims issues resolved and payoff provided No payoff ledger, escrow reconciliation, or insurance trace included Violation : 12 U.S.C. 5536 ( UDAAP ) Harm : CFPB was misled while estate remained uncompensated.

Company response to consumer: Closed with explanation