Mortgage -- Trouble during payment process -- Complaint #9804318
Complaint Overview
Complaint ID: 9804318
Company: Select Portfolio Servicing, INC.
Product: Mortgage
Sub-Product: Conventional home mortgage
Issue: Trouble during payment process
Sub-Issue: Interest rate
State: Texas
ZIP Code: 76248
Date Received: 2024-08-14T12:00:00-05:00
Date Sent to Company: 2024-08-14T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Tags: Servicemember
Consumer Narrative
I am an XXXX XXXXXXXX XXXX since XX/XX/XXXX. The Servicemembers Civil Relief Act ( SCRA ) allows service members to reduce the interest rate on mortgages to 6 % for one year after XXXX XXXX if the mortgage was taken out before entering service. The 6 % cap applies from the first day of XXXX XXXX and any interest above 6 % is permanently settled. The service member 's monthly payment must be reduced by the amount of interest saved during the covered period. I applied for the SCRA benefit on XX/XX/XXXX and on XX/XX/XXXX the SCRA benefit was approved, but the approval letter didn't mention about any changes on interest rate. I had my wife XXXX XXXX called customer represenative on XX/XX/XXXX and after a few minutes of brief hold, she told my wife the interest rate will be adjusted to 6 % for the coming month. Since the mortgage payment is deferred, the principal and interest in XXXX is due XX/XX/XXXX, so we assumed the payment will be adjusted to 6 % for the XX/XX/XXXX due payment. However it didn't change a bit. I haven't received the XX/XX/XXXX due mortgage statement yet, but I called on XX/XX/XXXX and customer rep told me " nothing will change on the interest rate ''. This is clearly against the SCRA law. The mortgage was obtained in XX/XX/XXXX which is way before my XXXX XXXX service started. According to the law, loan servicer is required to reduce the interest rate to cap at 6 % from the date I entered XXXX XXXX service. We still pay the same amount mortgage. I had applied SCRA benefit to my other loans like car loan, the loan servicer automatically applied the over-paid interest to reduce the principal and dated back to the date when my XXXX XXXX service started. I'm expecting SPS Service shall do the same.
Frequently Asked Questions
What is Complaint #9804318 about?
Complaint #9804318 was filed against Select Portfolio Servicing, INC. regarding Mortgage specifically about Trouble during payment process. It was received by the CFPB on 2024-08-14T12:00:00-05:00.
How did Select Portfolio Servicing, INC. respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Mortgage) and describe your issue in detail.
Can I see other complaints against Select Portfolio Servicing, INC.?
Yes, visit the Select Portfolio Servicing, INC. company profile at readthecomplaint.com/company/select-portfolio-servicing-inc to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.