Quick Answer: Select Portfolio Servicing (SPS) is a major mortgage servicer that has faced multiple lawsuits alleging it mishandled payments, reported inaccurate information to credit bureaus, and made improper foreclosure threats — particularly against homeowners who exited COVID-19 forbearance. If SPS services your mortgage and you’ve been hit with unexpected fees, credit damage, or threatened with foreclosure over post-forbearance balances, you may have legal rights under federal law.
Select Portfolio Servicing handles hundreds of thousands of mortgage accounts — and a growing string of lawsuits reveals a pattern of alleged problems: refusing to accept regular payments, reporting homeowners as delinquent while refusing their checks, demanding lump-sum repayment of COVID forbearance balances, and charging fees for routine payment methods. These aren’t just billing disputes. They can destroy your credit, derail your finances, and put your home at risk.
A new lawsuit, Tuttle v. Select Portfolio Servicing, Inc., was filed in the U.S. District Court for the Middle District of Florida (Case No. FLMD 454349) and describes the kind of challenges homeowners face when a mortgage servicer creates obstacles rather than solutions. I queued this case specifically because of its detailed, human description of what a real borrower went through.
The Pattern of Alleged Problems at Select Portfolio Servicing
Here’s what multiple lawsuits and consumer complaints allege about SPS:
- Refusing to accept regular payments — then reporting you as late to credit bureaus anyway. The Rothman v. SPS class action (2024) alleged exactly this: the company refused to accept monthly installment payments while simultaneously flagging the homeowner as delinquent
- COVID forbearance lump-sum demands — after COVID forbearance ended, federal guidelines (and CFPB guidance) explicitly allowed homeowners to repay deferred amounts over time. The Rothman complaint alleged SPS demanded the full deferred balance upfront or threatened foreclosure — ignoring those guidelines entirely
- “Pay-to-pay” fees — a federal judge compelled SPS to justify fees it charges homeowners for paying by phone or online — charges that critics argue are exploitative fees for a basic service
- Inaccurate credit reporting — multiple suits allege SPS reported false delinquency data to Equifax, Experian, and TransUnion, damaging homeowners’ credit scores while they were trying to make their payments
- Foreclosure threats during disputes — homeowners who were actively trying to resolve billing problems were reportedly threatened with foreclosure
This Is Exactly Why Federal Law Protects You: RESPA (Real Estate Settlement Procedures Act) and FCRA (Fair Credit Reporting Act) exist precisely for situations like these. If a servicer refuses your payment and then reports you late, that’s a RESPA violation. If they report inaccurate data to credit bureaus, that’s an FCRA violation. Both carry damages — often including attorney fees, meaning you can sue without upfront legal costs.
The COVID Forbearance Trap
If you took a COVID-19 forbearance on your mortgage, you need to understand the rules SPS allegedly violated.
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Federal guidelines established during the pandemic gave homeowners multiple options when forbearance ended — they did NOT have to repay the entire deferred amount immediately. Options included:
- Deferring the balance to the end of the loan (loan modification)
- Repaying over time through a structured repayment plan
- Resuming regular payments with the deferred balance handled separately
The lawsuit alleging SPS violated these guidelines claims the company told borrowers: pay the full deferred amount now, or face foreclosure. That’s not what federal guidelines allowed — and it allegedly cost homeowners their credit and put their homes in jeopardy.
Who Is Select Portfolio Servicing? SPS is one of the largest mortgage servicers in the United States, handling primarily “specialty” loans — often mortgages that were transferred from other servicers, subprime loans, or loans in various stages of hardship. Many homeowners never chose SPS; their loan was sold or transferred to them. If your loan is serviced by SPS, your original lender likely no longer holds the note.
Your Federal Rights Against Mortgage Servicer Abuse
Federal law gives you specific protections and remedies when a mortgage servicer violates the rules:
Your Rights Under RESPA
- Send a “Qualified Written Request” (QWR) — SPS must respond within 5 business days and resolve within 30
- Sue for actual damages plus up to $2,000 in statutory damages if your QWR is ignored
- Class action damages up to $1M if widespread violations
- Attorney fees if you win
Your Rights Under FCRA
- Dispute inaccurate credit reporting directly with bureaus
- If bureau investigates and SPS won’t correct it, sue SPS directly
- Actual damages (including job loss, higher interest rates) plus statutory damages up to $1,000
- Punitive damages for willful violations
- Attorney fees if you win
What to Do If Select Portfolio Servicing Is Mishandling Your Mortgage
- Document everything in writing — every call, every payment, every letter. Write down dates and names after phone calls. Servicers are required to respond to written requests; verbal complaints can be ignored
- Send a Qualified Written Request (QWR) — a formal written inquiry under RESPA. Mail it certified with return receipt to the QWR-designated address (ask SPS for this address — it may differ from their payment address). Once received, SPS has 5 business days to acknowledge and 30 days to respond substantively
- Dispute any inaccurate credit reporting immediately — file disputes with all three bureaus (Equifax, Experian, TransUnion) and in your dispute letter, cite the specific inaccurate item. If the bureau sides with SPS without a real investigation, that’s another potential violation
- File a complaint with the CFPB — go to consumerfinance.gov/complaint/. CFPB forwards complaints to the servicer and requires a response. This creates a paper trail and sometimes triggers faster resolution
- Contact a consumer protection attorney — RESPA and FCRA cases are typically taken on contingency (the attorney gets paid only if you win, from the servicer’s legal fees). You can often get a free consultation. Search for attorneys who handle RESPA or FCRA cases in your state
- File a complaint with your state’s mortgage regulatory agency — every state has a regulator for mortgage servicers. A complaint here adds to the regulatory record and can trigger an examination
Before you sign anything with your servicer — a loan modification, repayment agreement, or settlement offer — run it through the Contract Decoder first. Servicer agreements can contain provisions that waive your rights to future claims. Know what you’re signing.
Remember: Your Servicer Is Not Your Lender. Select Portfolio Servicing collects your payments, but they likely don’t own your loan. The actual lender (an investor, trust, or securitization pool) holds the note. SPS is paid a fee to administer the loan — and their incentive structure doesn’t always align with what’s best for you. That’s why regulatory oversight and legal accountability matter so much in this space.
Key Takeaways
- Select Portfolio Servicing faces multiple lawsuits alleging payment refusals, false credit reporting, illegal foreclosure threats, and improper post-forbearance demands
- If SPS refused to accept your payment and then reported you late — that’s an alleged RESPA violation with legal remedies
- If SPS demanded your full COVID forbearance balance upfront or threatened foreclosure — that contradicts federal guidelines, and you may have a claim
- Send a Qualified Written Request (QWR) in writing via certified mail to trigger formal RESPA response obligations
- FCRA and RESPA cases are typically handled by attorneys on contingency — you may be able to sue without upfront costs
Frequently Asked Questions
Can I sue Select Portfolio Servicing without an attorney?
Technically yes, but it’s not advisable. RESPA and FCRA cases involve specific procedures, deadlines, and legal requirements. More importantly, if you win, SPS typically pays your attorney’s fees — meaning a consumer protection attorney often costs you nothing. Search for attorneys who handle RESPA, FCRA, or mortgage servicing abuse cases in your state. Many offer free initial consultations and take cases on contingency.
What is a Qualified Written Request (QWR) and how do I send one?
A QWR is a written letter to your mortgage servicer requesting information about your loan or disputing a servicing error. Under RESPA, once SPS receives a QWR, it must acknowledge within 5 business days and respond substantively within 30 business days (extended to 45 in some circumstances). The letter must be sent to the specific QWR address — ask SPS for this address in writing, as it may differ from their regular mailing address. Send via certified mail with return receipt so you have proof of delivery.
My mortgage was transferred to Select Portfolio Servicing without my consent. Is that legal?
Yes, generally legal. Mortgage servicers can be changed, and your loan can be sold or transferred to SPS without your approval. However, when a transfer happens, both the old servicer and SPS must notify you in writing — the old servicer at least 15 days before transfer, and SPS within 15 days after. During the 60-day period after a transfer, you cannot be charged late fees if you send payments to the wrong servicer. If any of these notifications were missing or late, that’s a separate RESPA violation.
How do I file a complaint about Select Portfolio Servicing?
You have multiple channels: (1) File with the CFPB at consumerfinance.gov/complaint/ — they forward to the servicer and require a response; (2) File with your state’s mortgage regulatory agency; (3) File with the Better Business Bureau, which creates a public record; (4) If you’ve suffered actual harm (credit damage, financial loss), consult a consumer attorney about a direct legal claim. Filing complaints creates documentation and regulatory pressure — do all of them.
What if I already paid the lump-sum demand from SPS after COVID forbearance — can I still sue?
Possibly. If SPS unlawfully demanded a lump-sum repayment that you felt you had no choice but to pay, you may have a claim for unjust enrichment, breach of contract, or RESPA violations even if you already paid. The statute of limitations on RESPA claims is generally 3 years; FCRA claims are generally 2 years from when you discovered the violation. Consult an attorney to assess your specific situation and timeframe.
Sources: CourtListener — Tuttle v. Select Portfolio Servicing | ClassAction.org — SPS False Credit Reporting Lawsuit | MPA Magazine — SPS Pay-to-Pay Fees
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I have requested documents from SPS, I have several times a payment breakdown of mortgage payments from the time my loan was sold to them from BOA. I recently found out through another lender looking to finance loan agreement has change mortgage to a 50-year loan. Asking for this sending over payoff amount. I want the breakdown of all payments. Been in my home 23 years and it’s more now that what my original loan.
Is there a open sue that we can still get into with them or it’s a time limit…
Was sick & tried to improve property value – which I did – got really behind Had to Pay Select Portfolio Servicing ( $ 35,000 0 or face legal action – to reinstate loan end of last year & now almost broke. We desperately NEED a refinance !! /
Select Portfolio Servicing told me last I was qualified for a Modification – I applied – 30 days later they denied me – 30 days after they threatened me to Pay $ 35,000 to re-instate the loan of face Foreclosure ( on credit report but did NOT happen ) – They then DOUBLED our Payment – Been looking for ” HELP ” ever since. PLAESE !!! Would like to leave Taxes & Insurance OFF !!
I really don’t think the so called Underwriters are willing to really HELP People in my position with financial setbacks. They say we Would IF we Could – but reality they say ” We just don’t give a damn and we don’t have to care ”
Just received a ” Notice of Default – Right to Cure ” Notice
I am a71 year old man select porfolio denied me every time apply for a loan modifactin they just sold my house on june 2nd 2026 at county action iam hoping i can redeem my house before ten day period is up
Hi John, I hope you were able to get a favorable solution to your situation. Came on looking for answers and now see some others are in a worse situation. SPS is the worse!