Consumer complaint received 2025-06-12 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: SELECT PORTFOLIO SERVICING, INC.
State: NV

Complaint narrative:
SPS is violating 1024.17 ( c ) ( 2 ) by not completing an escrow analysis on account establishment. 

* My loan was provided by XXXX mortgage and began in XX/XX/XXXX. 
* The loan disclosure included an estimated monthly escrow amount of {$530.00}. 
* At loan signing I reviewed this amount and told the escrow officer that this seemed high. I know that both the insurance and property taxes were approximately {$1100.00} per year ( each ), for a total of approximately {$2200.00} per year, which would be approximately {$200.00} per month, far less than the {$530.00} in the disclosure. The officer told me that this was an estimated amount, and that the number would be reviewed after the loan closed. 
* In approximately XX/XX/XXXX ( after my first payment ) my loan was sent to SPS for servicing. 
* After several months I noticed that the monthly escrow amount hadn't changed. 
* In XX/XX/XXXX I called SPS and requested an escrow analysis. The customer service agent submitted a ticket to the escrow analysis team. 
* In XX/XX/XXXX I realized that I was never provided with a confirmation that the escrow analysis had been started or completed, so I called. I was told that it was still ongoing, and can take XXXX  months. 
* In XX/XX/XXXX I had still not received a confirmation so I called SPS and was told they didn't have enough information and so an analysis wasn't completed. 
* In XX/XX/XXXX I called again to request an escrow analysis. I was told that they are only required to complete the escrow analysis once per year, and that the next escrow analysis is scheduled for XX/XX/XXXX, but that the customer service agent could submit a ticket to request an analysis be done immediately. She was unable to explain to me how this would be any different than the request I made in XXXX, or if it would be completed this time, or when, or if I would receive confirmation. 
* Not happy with this response, I reached out to the SPS Ombudsman. An analysis is still pending, but I was told that it's possible that the reason the next analysis is scheduled for XX/XX/XXXX is because an analysis was being completed, but she wasn't sure about this. 

My reading of 1024.17 ( c ) ( XXXX ) is that my escrow account was " established '' when SPS when they took over my account in XXXX of XXXX, and that SPS was responsible to do an escrow analysis at that time, whether or not they believed that a previous servicer or company had done an analysis. SPS has never provided me with an escrow analysis account statement as per 1024.17 ( g ). 

If my escrow account is found to have been established at loan origination and SPS is correct that they are not responsible for doing an initial escrow analysis but only subsequent annual analyses ( per XXXX ( c ) ( XXXX ) ) then that leaves borrowers in a really XXXX position. The last thing they're able to do when closing a loan is to review -- and insist on correction of -- the estimated escrow amount. Additionally, the fact that this is an " estimated '' amount makes the borrower believe ( understandably ) that this can be corrected. Neither the loan company nor the servicer have any incentive to ensure that this estimate is correct, and the servicer ( as SPS has done ) can simply claim it's not their fault, point fingers at the previous companies, and tell the borrower that they have to wait a year for the amount to be fixed. In the meantime, the borrower is possibly paying several XXXX dollars more per month than they need to, and the servicer is earning the interest.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation