CA-AG v. Select Portfolio Servicing

Select Portfolio Servicing (SPS) allegedly violated state and federal mortgage servicing and debt collection laws during the COVID-19 pandemic, including the Homeowner Bill of Rights (HBOR). The California Department of Justice's investigation indicated that SPS failed to provide homeowners with adequate information about COVID-19 forbearance plans and related exit options, sent mortgage statements wrongly stating late fees for missed payments during forbearance, failed to ensure tailored loss mitigation discussions, and did not ensure adequate support for homeowners seeking foreclosure prevention alternatives or that homeowners could submit loan modification applications according to HBOR timelines.

Summary generated from official California Attorney General press release