Consumer complaint received 2025-04-21 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Selene Holdings LLC
State: MI

Complaint narrative:
Beginning XX/XX/XXXX, Selene Finance assumed servicing of my mortgage previously held by XXXXXXXX XXXX Despite the effective transfer date being XX/XX/XXXX, Selene reported my account as due for the XX/XX/XXXX installmentbackdating my delinquency by XXXX months prior to their servicing rights. This action violates RESPA Section 6 ( 12 U.S.C. 2605 ( d ) ), which prohibits late fees or adverse actions within the 60-day post-transfer window when timely payments are made. Selenes own records confirm they marked the loan 86 days delinquent by XX/XX/XXXX, even though I had submitted over {$10000.00} in payments between XXXX and XXXX. Those funds were improperly held in suspense and were not applied to satisfy my loan obligations. A Notice of Default was issued on XX/XX/XXXX, based on these fabricated arrears. This constitutes improper payment application under Regulation X ( 12 CFR 1024.35 ( b ) ( 3 ) ) and violates XXXX XXXX servicing guidelines. 

In addition, Selene increased my monthly payment from {$4600.00} to {$6000.00} citing an alleged escrow shortage of {$19000.00}. Their XX/XX/XXXX escrow analysis references over {$13000.00} in XXXX XXXXXXXX XXXX and over {$7500.00} in XXXX XXXX XXXX  as disbursements contributing to this shortage. However, my official XXXX Notice of Assessment from the XXXX XXXX XXXX XXXX XXXX shows only a {$550.00} increase in taxable value and a State Equalized Value increase of {$34000.00}. These tax changes do not justify a projected escrow shortage of nearly {$20000.00} or an increase of {$1300.00} to my monthly payment. Selenes analysis grossly overstates anticipated disbursements in violation of 12 CFR 1024.17, which mandates that escrow projections be based on accurate and verifiable figures. This creates undue financial burden and falsely places my account at risk.

Further, Selenes response references a XXXX loan modification from XXXXXXXX XXXX in which my loan balance was increased to {$570000.00} with a deferred balance of {$20000.00}. This modification quietly replaced my XXXX agreement, extending the term from 20 years to 40 years without disclosing total interest paid over time, amortization schedule, or any side-by-side cost comparison. At no point did XXXX or Selene provide a full breakdown of the $ XXXX added to my balance, nor was I advised of long-term cost implications. This is a material omission under TILA and contrary to XXXX XXXX servicing guidance for XXXX relief and borrower communication. 

As of this writing, I have filed the following complaints to document the pattern of misconduct and request regulatory enforcement : CFPB Complaint # XXXX ( XXXX XXXX Closed ) CFPB Complaint # XXXX ( Selene Finance Closed with Explanation, Feedback Pending ) CFPB Complaint # XXXX ( XXXX XXXX Open ) DIFS Confirmation # XXXX ( XXXX XXXX Delinquency and Payment Abuse ) DIFS Confirmation # XXXX ( XXXX XXXX Modification Term/Capitalization Abuse ) FTC Report # XXXX ( XXXX XXXX & Selene Deceptive Servicing Practices ) Michigan XXXX Complaint # XXXX ( Escrow/Delinquency Misconduct ) XXXX XXXX XXXX XXXX XXXX Delivered XX/XX/XXXX at XXXX XXXX FHFA Complaint Submitted XX/XX/XXXX XXXX XXXX Selene Finances response to CFPB does not resolve any of these issues. Instead, it confirms servicing irregularities, regulatory violations, and disregard for borrower protections. I request this complaint be reopened for supervisory review and regulatory action.

Company response to consumer: Closed with explanation