Complaint Review: Select Portfolio Servicing Inc.

A mortgage on a property I own was transferred to SPS in the fall of 2014. I was not notified of the transfer by the previous mortgage servicer, who apparently also transferred outdated contact information with the loan file. However, both companies did have my email address, as evidenced by the monthly email sent to me, indicating receipt of the monthly mortgage payment. I can't explain why neither company sent me an email; both have indicated that they realized there was an issue with the transfer of the account.

Today, I received an alert from the third party credit monitor I use. I investigated the alert and found that SPS had reported my account 30 days delinquent. I contacted SPS based on the information reported to the credit bureau. I called SPS, who explained that my mortgage had been transferred to them; this was the first I learned of the transfer. I then called my previous mortgage company, who confirmed the transfer and informed me that since the transfer, the amount of my mortgage payment had been transferred to SPS each month. They were able to provide me the date of each payment transfer from them to SPS. I then called SPS again, and explained the situation. I proactively told them I would email PDF copies of my monthly bank statements, showing the dates each mortgage payment had been made, so they could then work with the previous mortgage company to straighten the matter out. I also asked them to clear the derogatory report from the credit bureau. That's when the discussion began to get confusing.

SPS informed me that they would not accept PDF files, or emails at all. They told me I had to fax the statements to them. I explained that I did not have a fax, but that it would take only minutes to download the statements and email them to SPS. The representative from SPS told me that he was sorry I did not have a fax, but that I could go to my bank, or perhaps a public library, and fax the statements from there. Further, the representative indicated that only when SPS had the proof of payment would they clear the derogatory comment from the credit bureau. I commented that I thought the insistence on using fax was out dated, and in fact, less secure than sending a PDF file via a secure internet connection. The representative became a bit defensive, saying that he never told me to use a mode of communication that was not secure. I told him that I, his customer, did not have time to hunt down a public fax, and again offered to send the bank statements in an email - I had already downloaded them in the time it took for the two of us to have the conversation! The representative again said SPS would not accept an email and PDF files; only fax or mail. 

I find the practice unfair. It is a moot point as to whether the issue with my mortgage is because of errors on the part of my previous mortgage company, or SPS. However, as a new customer of SPS, I do not think it is reasonable for their representative to imply that the burden of proof is solely on my shoulders. I suggested that the problem was in the transfer of account information and a timing issue between the two mortgage companies. The representative indicated that this could well be the case, but still, I had to prove to SPS I made the payments - but only by fax or mail; no emails. This appears to me to be manipulative, and a tactic to buy time on the part of SPS. The thought that a company, today, would not be able to accept PDF files in an email is a bit ridiculous.

I am completely disappointed and frustrated with SPS.  SPS is making quite a nice margin on my mortgage since it is an old mortgage and currently above market, at 6%, and in excellent standing. The consequence for them will be that I will stop postponing a refinance, and get rid of them as a mortgage servicer, post haste.

I'd like to know if anyone else has experienced what seems to be unfair practices by SPS.