Consumer complaint received 2025-07-25 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:
Please note that the First Complaint ID : XXXX is referenced herein. 

It is important to note that Select Portfolio Services , Inc. ( " SPS '' ) has admitted in their recent letter to me, XXXX XXXX XXXX, that they've made an error in making payments for hazard insurance. The payment currently demanded by SPS improperly includes an escrow shortage of over {$450.00} per month, which SPS has now increased from approximately {$17000.00} to {$21000.00}, despite having claimed to close the escrow account for hazard insurance. 

I am the homeowner and borrower under a loan originally issued by XXXX XXXX XXXX. From the beginning, and as clearly outlined in the loan agreement and closing disclosures, the loan only required an escrow account for flood insurance. At no point was an escrow account established or authorized for property taxes or homeowner 's ( hazard ) insurance. 

After SPS acquired the servicing rights to this loan, it unilaterally, without authorization, consent, or notice, established an escrow account for hazard insurance in direct violation of the loan agreement. It then improperly disbursed over {$17000.00} in escrow funds to pay : XXXX XXXX XXXX ( XXXX ) : a policy that was already paid by us prior to SPSs involvement ; XXXX XXXX XXXX ( XXXX ) : a policy that we explicitly rejected in writing before it became effective ; XXXX  XXXX XXXX ( XXXX ) : our current, valid policy, which we voluntarily selected and paid for ourselves. 
Additionally, SPS is now charging us over {$450.00} per month for flood insurance, totaling more than {$6000.00} annually, an amount that is grossly inflated and far exceeds the market rate for comparable flood insurance coverage, which averages around {$2000.00} annually. These unexplained, excessive charges are financially devastating and wholly unjustified. 

Worse still, SPS has attempted to shift blame to us by asking that we contact the insurance companies to recover the improperly paid fundsfunds we never authorized them to disburse in the first place. This is an attempt to avoid accountability for what appears to be a negligent and unauthorized administration of escrow funds. 

Despite our repeated efforts to resolve the matter, SPS continues to demand we pay an additional {$1000.00} more per month due to their unauthorized escrow analysis and disbursements. We have continued to make timely payments on the principal and interest portion of our mortgage but have rightfully refused to pay this unlawful increase. 

Furthermore, XXXX XXXX XXXX, who is an authorized user on the account and has full authority to manage and communicate regarding the mortgage, has repeatedly contacted SPS with formal written complaints and requests. SPS has wrongfully denied her access and attempted to claim she is not on the account. This is categorically false and misleading. XXXX XXXX involvement is fully documented, and SPSs refusal to respond to her communications is both improper and obstructionist. 

It is clear that SPSs recent action to close the escrow account is a tactical maneuver to sweep these serious errors under the rug and avoid responsibility. This is not an administrative oversightit is a pattern of misconduct and a violation of state and federal law. 

SPSs conduct may violate ( s ) : RESPA ( 12 U.S.C. 2605 ) : for mismanaging escrow funds, violating loan terms, and failing to respond to borrower communications appropriately ; Fla. Stat. 501.1375 : which prohibits servicers from collecting escrow amounts in excess of what is reasonably necessary ; Its fiduciary duty as escrow agent : by disbursing funds without authorization and using those disbursements to inflate our monthly obligations ; Principles of good faith and fair dealing : required under the mortgage servicing relationship. 
As a result, we assert claims for : Breach of Contract Negligent Administration of Escrow Breach of Fiduciary Duty Unjust Enrichment Given the seriousness and scope of these violations, we believe SPSs conduct should be subject to federal investigation. We are preparing formal complaints to the Consumer Financial Protection Bureau ( CFPB ), Florida Attorney Generals Office, and other federal regulatory bodies. The attempt to silence authorized account users and retroactively conceal their misconduct through a quiet closure of the escrow account demands full regulatory scrutiny. 

We demand that SPS : Immediately reverse all unauthorized escrow disbursements and provide an accounting ; Remove the inflated escrow shortage and adjust the escrow analysis accordingly ; Cease all efforts to collect improper escrow-related payments ; Acknowledge XXXX XXXX XXXX XXXX XXXX authorized account user and respond accordingly ; Confirm in writing that escrow payments will be limited to the scope of the original agreement going forward, only flood insurance and off our choosing. 

We reserve all legal rights and remedies. This Complaint was drafted and revised by XXXX XXXX XXXX.

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