Date Received: 2023-12-15
Issue: Struggling to pay mortgage
Subissue: Foreclosure
Consumer Complaint: Despite numerous requests made by myself, SLS has displayed a consistent lack of effort and care in furnishing the requested paperwork and addressing its violations to my Home Equity Credit Line Agreement ( HELOC ), as required under RESPA law and policy. Regrettably, my previous efforts to address this matter through communication channels have proven unfruitful, as the requested documentation, crucial to my home, remains outstanding. This non-compliance with my legitimate and repeated requests has created an unwarranted obstacle, thereby hindering SLS ' responsibility to work on this situation. Moreover, the lack of appropriate attention to my concerns in regards to RESPA law and consumer policy demonstrates a disregard for the conduct and obligations that come with engaging in consumer relations and responsibilities. In light of these circumstances, I am formally requesting immediate attention to this matter. I urge SLS to promptly provide the outstanding documentation as previously requested, and is required under RESPA, and take necessary steps to rectify the oversight in addressing my complaint. Enclosed herewith are pertinent documents delineating the array of violations committed by SLS concerning my Home Equity Credit Line Agreement ( HELOC ). Over an extensive period spanning approximately a decade, SLS remained dormant in correspondence with the absence of equity in my property. Nevertheless, the company has recently resorted to threatening foreclosure, deeming the situation a " zombie mortgage. '' This course of action not only mirrors my personal circumstance, but also resonates with cases extensively publicized in the media and documented within the Consumer Financial Protection Bureau 's ( CFPB ) Consent Order, Settlement, and Guidance materials, all of which are attached herewith alongside this formal complaint. The aforementioned CFPB guidance explicitly addresses the illicit tactics akin to those employed by SLS. It underscores, " Now, over a decade later, and often without any intervening communication with homeowners who were able to save their homes, some of these debt collectors are demanding the mortgage balance, interest, and fees, and threatening foreclosures on families who do not or can not pay '' ( CFPB- see attached ). The strategies employed by SLS in my case starkly echo this narrative. It is imperative to highlight that " debt collectors engaging in the pursuit of recovering on these 'zombie second mortgages ' may be in direct violation of the Fair Debt Collection Practices Act '' ( CFPB- see attached ). Throughout the prolonged period when my property lacked equity, SLS failed to provide regular statements or updated balance information regarding my mortgage account during this time, of nearly 10 years, explicitly violating Section 4.b. of my HELOC agreement ( attached herewith ). However, upon the accumulation of equity in my property, SLS abruptly initiated foreclosure proceedings, setting the foreclosure date for XX/XX/XXXX. The recurrent patterns in SLS 's conduct unequivocally indicate predatory and deceptive business practices, overtly disregarding established laws and regulations, as corroborated by the CFPB 's Consent Order, Settlement, and Guidance documents. Notably, the 2020 Consent Order issued by the CFPB against SLS serves as a vivid demonstration of the company 's transgressions under the Real Estate Settlement Procedures Act ( RESPA ), its Regulation X, and the Consumer Financial Protection Act of 2010 ( CFPA ). The findings of this order resonate with the circumstances of my case, citing SLS 's unlawful foreclosure actions against borrowers entitled to protection from such measures and their failure to timely deliver evaluation notices, in direct violation of Regulation X. Moreover, the CFPB 's Consent Order stipulated that SLS pursued foreclosure judgments and sales when compliance with Regulation X would have shielded borrowers from such actions. As a consequence of these violations, SLS was mandated to provide {$770000.00} in monetary relief to consumers, waive {$500000.00} in borrower deficiencies, pay a {$250000.00} civil money penalty, and implement stringent compliance procedures to adhere to RESPA and Regulation X. SLS 's disregard for complying with the terms of my HELOC, particularly the mandate to furnish regular statements as stipulated, has led to misinformation about my loan status and imposed a substantial financial burden at present. The company 's non-compliance with regulatory obligations and their foreclosure threat, demanding an excessive down payment and interest, is not merely unjustifiable, but ethically unsound, unfairly jeopardizing my home. Furthermore, despite multiple attempts, SLS has refused to provide the requested documentation regarding statements made about my loan and its status, exacerbating the aforementioned issues. The sequence of events, including the impactful actions taken by the CFPB against SLS in 2020, underscores a disconcerting pattern of regulatory non-compliance and predatory practices. SLS 's history of consumer complaints, litigation across diverse jurisdictions, and the conspicuous absence of adherence to ethical and codified business practices further accentuate their consistent deviation from lawful conduct. Given the recent CFPB Consent Order and the distressing recurrence of unlawful practices by SLS, I earnestly implore you to take action to hold SLS accountable for its persistent violations. It is imperative to shield consumers from enduring further exploitation resulting from such abusive practices both at present and in the future. Your cooperation in this regard would be greatly appreciated. Thank you for your attention to this urgent matter.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 91361
Submitted Via: Web
Date Sent: 2023-12-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-15
Issue: Struggling to pay mortgage
Subissue: Trying to communicate with the company to fix an issue related to modification, forbe
Consumer Complaint: My Attorney has filed Suit XXXX against Specialized Loan Servicing XXXX XXXX XXXX XXXX XXXX for XXXX XXXX XXXX XXXX XXXX XXXX XXXX Louisiana XXXX XX/XX/2023. In addition multiple state and/or federal regulatory agencies has/have being alerted of SLS 's servicing practices including : Federal Trade Commission Division of Credit Practices XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX : XXXX XXXX ) XXXX
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: LA
Zip: 70122
Submitted Via: Web
Date Sent: 2023-12-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-13
Issue: Struggling to pay mortgage
Subissue: Foreclosure
Consumer Complaint: I took out a HELOC in XXXX with XXXX XXXX XXXXXXXX and filled for XXXX XXXX and was discharged XXXX. I have not heard a word from XXXX XXXX XXXXXXXX. XX/XX/XXXX I find out the house house is being foreclosed. I spoke with XXXX XXXX doing the Foreclosure. They informed me that the Company filing the foreclosure is SLS. I contacted them and the informed me they bought the loan in XXXX. They also told me they were mailing to my old address back in XXXX. I asked them why they did not also mail to the property address. They could not answer I need to stop the Foreclosure for XX/XX/XXXX. I was never notified by XXXX XXXX XXXXXXXX that they sold the loan. There is a First on the Property of almost {$600000.00}
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: GA
Zip: 30338
Submitted Via: Web
Date Sent: 2023-12-13
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-11
Issue: Attempts to collect debt not owed
Subissue: Debt was already discharged in bankruptcy and is no longer owed
Consumer Complaint: XX/XX/XXXX I had a XXXX Bankruptcy this was done by a professional Bankruptcy Attorney. In this Bankruptcy the XXXX XXXX account was XXXX by the grantor and closed in XXXX. 9 years later I get a letter from Specialized Loan Servicing that they are the XXXX loan '' servicer and was transferred XX/XX/XXXX, and that Specialized Loan Servicing center would be collecting 'my payments '' going forward. This is illegal. The account was XXXX and closed in XXXX. Now, 3 years later they have added significant interest and now state we owe them over XXXX and says it does not include their attorney fees and other cost. They are trying to foreclose on our home. SLS can not collect on a debt that has been closed by grantor and XXXX in my Bankruptcy. XXXX provided me a " Promissory Note '', with only XXXX signature and no date, there were XXXX borrowers, for paperwork purposes, however I feel it is not valid and not a legal document. Predatory tricks, vague letters and falls claims. I am protected by the Fair Debt Collection XXXX which prohibits XXXX from trying to collect in anyway on an account that was dismissed in Bankruptcy.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 92585
Submitted Via: Web
Date Sent: 2023-12-12
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-11
Issue: Trouble during payment process
Subissue: Loan sold or transferred to another company
Consumer Complaint: I believe XXXX XXXX put me and wife in mortgage we couldnt afford. we end up filling bankruptcy. We are still living in the house. Now another company holds the house and they going through and filed for foreclosure. File date was XXXX XXXX i just got check from XXXX XXXX for XXXX for mistake they could have committed. i have not payed my mortgage since XXXX.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: FL
Zip: 34761
Submitted Via: Web
Date Sent: 2023-12-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-11
Issue: Trouble during payment process
Subissue: Trying to communicate with the company to fix an issue while managing or servicing yo
Consumer Complaint: Dear SLS and XXXX XXXX XXXX My name is XXXX XXXX, Acct XXXX XXXX / SLS XXXX and I am writing to you in an official capacity regarding significant issues surrounding my Home Equity Line of Credit ( HELOC ) account, currently under the management of Specialized Loan Servicing ( SLS ) and originating from XXXX XXXX XXXX ( XXXX ). This notice serves as a formal declaration of errors and violations that demand immediate attention and resolution. As of XX/XX/XXXX, I have encountered a series of severe discrepancies and regulatory violations that warrant your urgent consideration. The following points outline the specific concerns : Failure to Provide Account History : Despite repeated requests made of XXXX and SLS, I have not received the necessary account history, violating my rights as a consumer to transparent and accurate information. No access to account information after XX/XX/XXXX No history, No 1098 No initial Escrow statement No Escrow Annuals No Escrow Analyses No Escrow Disclosures INTEREST YEAR TO DATE REPORTING {$1300.00} is incorrect PAID year to date is {$3600.00} ERROR {$2200.00} XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Incomplete Transition Communication : The abrupt closure of my account on XX/XX/XXXX without prior notification or explanation constitutes a blatant violation of consumer rights, leaving me uninformed about vital financial matters. Welcome Letter dated XX/XX/XXXX Account transfer XX/XX/XXXX Good-bye letter dated XX/XX/XXXX Notice of sale dated XX/XX/XXXX Actual Sale date XX/XX/XXXX Account closed XX/XX/XXXX Mismanagement of Payments : SLS 's failure to accurately credit my payments and their attempts to coerce me into foreclosure are not only unacceptable but also a clear breach of ethical conduct. XXXX letter XX/XX/XXXX states the monthly payments would not be affected by transfer. Terms and condition were changed. XX/XX/XXXX Payment reversal amount is in error. Increase in payment from {$1100.00} to {$5600.00} on XX/XX/XXXX. Payment for HELOC account XXXX XX/XX/XXXX Lockbox unidentified item XXXX Next payment due XXXX XX/XX/XXXX No case number recorded as XX/XX/XXXX No Supervisor callback. as of XX/XX/XXXX Escrow Account Misinformation : The misinformation provided during the " escrow analysis '' on XX/XX/XXXX, based on incorrect and altered information, is a direct violation of regulatory compliance and consumer protection laws. XXXX modified Advancement dates. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX CANCELLATION NOTICE XXXX XXXX XXXX REFUND XX/XX/XXXX TO XXXX XXXX PAYMENT REVERSAL XX/XX/XXXX XXXX + fees XXXX Escrow Receipt. Total SLS shortage analysis XXXX ( NO CREDIT OF REFUND ) No new insurance Declaration received as of XX/XX/XXXX Claim of these Advances were credited to and paid from the Escrow account over the LAST 12MONTHS. Escrow disclosure and Analysis was never presented for 5 years up until XX/XX/XXXX. No initial statement of Escrow XXXX No Annual Escrow statement XXXX No Escrow Analyses XXXX No Escrow Disclosure XXXX No Declaration of Insurance ( Escrow advance {$7000.00} ) undated payout XXXX XXXX XXXX XXXX Account number same has CANCELLED policy XXXX XXXX No documented case number issued as of XX/XX/XXXX Refusal to Rectify Errors : Despite documented evidence and actively seeking resolution, SLS 's persistent refusal to correct errors raises serious concerns about adherence to fair and transparent practices. CURRENT PAYMENT {$9000.00} Next payment due XX/XX/XXXX {$10000.00} Hazard Insurance Refund Late fees 5 % In light of these issues, I must insist that all attempts to strong-arm me into default or foreclosure cease immediately. The actions taken by SLS and XXXX XXXX XXXXXXXX thus far not only jeopardize my financial stability but also stand in direct violation of multiple consumer rights regulations. I have filed a formal complaint with the Consumer Financial Protection Bureau ( CFPB ) XX/XX/XXXX, yet the issues persist without acknowledgment or resolution. I expect that, as responsible financial institutions, both SLS and XXXX XXXX XXXXXXXX promptly address and rectify these matters. Until a thorough investigation and resolution have been completed, I demand the cessation of any further actions that could lead to my default or foreclosure. Your immediate attention to this matter is not only necessary but also a legal obligation to ensure compliance with consumer rights laws. I anticipate your cooperation in resolving these issues without further delay. I am more than willing to provide any additional information or documentation necessary for a swift resolution. XXXX XXXX XXXXXXXX recently sold my loan after my 33 years of loyalty. I have a {$150000.00} HELOC line of credit and never missed a payment in 22 years. XXXX require a new roof every ten years, with costs ranging from {$32000.00} to {$60000.00}, and premiums from {$13000.00} to {$32000.00}. XXXX XXXX XXXXXXXXXXXX XXXX hazard insurance was {$7000.00}, and I made the unfortunate decision to opt for a cheaper option, assuming the repayment was on the back end of the loan. My current balance is {$46000.00}, and my home is valued at {$790000.00}. XXXX XXXXXXXX XXXX failed to set up a repayment schedule for the escrow account for five years, despite regulations requiring annual statements and disclosures. I wonder who is auditing to verify compliance. CFPB, do you have the answers to my questions? How is this allowed to happen when numerous failures and violations have occurred? What will be done on my behalf to protect me from further harm and distress? Will CFPB fulfill its legal obligations? I was transferred to SLS due to XXXX XXXX XXXXXXXXXXXX XXXX mismanagement, and now SLS is demanding {$5600.00} a month within the first 30 days of transfer, claiming I am now in deficiency. This seems legally questionable. The Federal Trade Commission and the State Attorney need to investigate the " transfer/sell-off to SLS protocol '' as I believe this is a regular mode of operation. CFPB, you have a legal obligation to ensure compliance with consumer rights laws, but it seems you haven't met your obligations either. The game seems to be played by their rules, with excuses like " we need more time. '' They don't even log CFPB correspondence or issue a case number to the consumer. Sending a message means nothing if there's no meaningful action. I have started recording this pattern of behavior because it needs to be exposed to the general public through national media. Calling customer service feels like setting oneself up for failure, with teenagers running a circus of transfers. Investigating the constant transfer of calls should be a priority. Spending two hours on the phone with no service, just mockery and shenanigans, is unacceptable. Most customer service associates lack etiquette and courtesy when handling serious financial business. They often say, " I just do call transfers. '' Check for yourselves : XXXX ( main ), XXXX ( insurance ), XXXX ( escrow ), XXXX, XXXX. Pick any number, and the results will be the same. I have never experienced such incompetence in any institution in my 60+ years. It's sickening. Give them a call and bear witness to the abuse. This is not only predatory but criminal in intent. CFPB, I petition you to do your due diligence and audit XXXX XXXX XXXXXXXX and SLS transferring procedures Thank you in advance for your anticipated obligation to on these violations. follow up.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: FL
Zip: 33009
Submitted Via: Web
Date Sent: 2023-12-11
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-11
Issue: Trouble during payment process
Subissue: Trying to communicate with the company to fix an issue while managing or servicing yo
Consumer Complaint: My Heloc was modified in XXXX, and I have made payments consistent with the amounts scheduled in the modification for 12+ years- including SLS for more than a year. Earlier this year, SLS claims they accidentally adjusted my maturity date in accordance with the original HELOC note ( maturity of XXXX ) as well as the payment due was adjusted upward. Once SLS reviewed the modification, they corrected the maturity date ( to a maturity date of XXXX ) - though they did not adjust the payments back to the agreed upon schedule in breach of the agreement. SLS is claiming that in order to pay the note in full by the maturity date of XXXX, that the payment must be adjusted upward and the schedule in the modification agreement is just a guide. While the modification states that it is a guide- it ignores not only XXXX years of strict adherence of multiple servicers to the payment schedule ( which I have paid in full and on time ), the precedence set, but also the additional guidance within the modification agreement that SLS ignores supporting that there could be a significant balance remaining due at maturity that must be paid in full at that time. I have a highlighted copy of the modification agreement- which shows not only the table of payments- but also the areas that SLS has not responded to which further support my comments that the payment in the schedule could have principal and interest components that vary monthly ( as a simple interest loan ) but the total payment due will equal the amount in the schedule. Paragraph 11 of the modification states that the loan is payable in full at maturity- indicating that at the point of maturity the balance could be significant ( potentially requiring the borrower to find a lender to make the final payment ). This supports my statement that the agreement I signed- and was agreed upon for 12+ years, that payment due follows the payment schedule as outlined in the modification agreement and that it should not be adjusted if there is an instance that requires the payment to be recalculated routinely if principal payment is insufficient. Further I paid a few days early or on time ( on autopayment ) on a regular basis, which would reduce the interest owed in terms of the agreement ( in the case of the early payments, not the on time payments- but most months was a few days early ) - and not add to the interest necessitating additional principal repayment in the first place. The terms of the modification- legally, 12+ years of precedent, and the spirit of the modification were to align with the scheduled payment plan which now reflects an increased principal payment causing the monthly payment to far exceed the amount I agreed upon. Additionally, SLS damaged my credit score by reporting the modification 12+ years after the event occured ( as the original modification was not recorded publicly ). This resulted in a XXXX point hit to my credit score. Since the event happened more than a decade prior, my credit today should not be impacted by an even that happened so far in the past. SLS claims they did not enter a negative credit event- but that is precisely what their actions resulted in.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: NY
Zip: 10031
Submitted Via: Web
Date Sent: 2023-12-11
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-12
Issue: Attempts to collect debt not owed
Subissue: Debt was already discharged in bankruptcy and is no longer owed
Consumer Complaint: XX/XX/XXXX I had a XXXX Bankruptcy this was done by a professional Bankruptcy Attorney. In this Bankruptcy the XXXX XXXX account was XXXX by the grantor and closed in XXXX. 9 years later I get a letter from XXXX XXXX XXXX that they are the XXXX loan '' servicer and was transferred XX/XX/XXXX, and that XXXX XXXX XXXX center would be collecting 'my payments '' going forward. This is illegal. The account was XXXX and closed in XXXX. Now, 3 years later they have added significant interest and now state we owe them over XXXX and says it does not include their attorney fees and other cost. They are trying to foreclose on our home. XXXX can not collect on a debt that has been closed by grantor and XXXX in my Bankruptcy. XXXX provided me a " Promissory Note '', with only XXXX signature and no date, there were XXXX borrowers, for paperwork purposes, however I feel it is not valid and not a legal document. Predatory tricks, vague letters and falls claims. I am protected by the Fair Debt Collection XXXX which prohibits XXXX from trying to collect in anyway on an account that was dismissed in Bankruptcy.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: CA
Zip: 92585
Submitted Via: Web
Date Sent: 2023-12-15
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-11
Issue: Trouble during payment process
Subissue: Payment process
Consumer Complaint: Attempted to pay my payment online on XXXX XXXXXXXX XXXX. Payment would not go thru - said payment type not accepted and the amount appeared that i had not paid XXXX bill Tried again this am to pay online - same troubles - payment type not accepted ( debit card ). Since there was no warning at all that debit cards were not accepted - called SLS- the holder of the loan Called and 1st agent could not explain so I was transferred to XXXX in the XXXX section - he stated that the XXXX of XXXX was applied and the new payment was due XXXX XXXX ( with a 15 day grace period ) and the new payment included the XXXX of XXXX payment, which is not yet due. XXXX was unable to properly explain why a payment that was not due was due and it was not stated anywhere on the payment form. XXXX did not accept that a debit card is the same as a check and was attached to a checking account- they apparently want a checking account number in lieu of a debit card. I relinquish significant protections by not using a VISA number. I spoke harshly to XXXX about his not knowing a debit card is the same as a check i.e. a bank account number and was promtly hung up on 1 ) My XXXX payment was not correctly added to the current billing statement and made it appear that i was in arrears 2 ) The amount due was not properly reported in a manner that was understood by a typical user 3 ) A payment using a debit card is useable if over the phone but not if paying online with no notification of that fact 4 ) A demand of payment should be what is typically acceptable and not demand of a {$7.00} or {$12.00} charge to speak with an agent 5 ) Payments in advance should be clearly stated and not be demanded unless new terms are signed 6 ) This company has run me over the coals and i will no longer accept shoddy service
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: MS
Zip: 393XX
Submitted Via: Web
Date Sent: 2023-12-11
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-12-08
Issue: Trouble during payment process
Subissue: Trying to communicate with the company to fix an issue while managing or servicing yo
Consumer Complaint: I received an escrow analysis from Specialized Loan Servicing XX/XX/2023. they projected an increase of monthly escrow and shortage payment total of {$400.00}, the figures for real estate taxes they paid were incorrect. I contacted XXXX County treasury and requested receipt of taxes paid for 2023. speicalized Loan paid the correct taxes but used incorrect figures in the escrow report. sent a Notice of Error requesting correction which they received on XX/XX/2023. the Notice of Error also pointed out the my property has senior tax freeze so the taxes will not increase. speicalized loan servicing has not responded as of XX/XX/2023 to the Notice of Error, which is past the 5 day window for response. additionally have sent 2 emails through their web site asking for a respsone. the mortgage payment due XX/XX/XXXX with a grace period ending XX/XX/XXXX. I have not sent the payment with the increased escrow portion as I am very concerned they will not correct the escrow error.
Company Response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
State: IL
Zip: 60187
Submitted Via: Web
Date Sent: 2023-12-08
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A