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Specialty Servicer

SPS Mortgage Servicing

Select Portfolio Servicing (SPS) is a specialty servicer that focuses specifically on servicing non-performing and sub-performing mortgage loans. SPS's entire business model revolves around loans in o…

30+ Years Experience Nationwide Service Fast Response Confidential

Portfolio Size

$120+ billion servicing portfolio

Customer Service

888-818-6032

Loss Mitigation

888-818-6032

Website

SPS.com

Loss Mitigation Programs

SPS offers the following loss mitigation programs. Availability depends on your loan type (FHA, VA, USDA, GSE conventional) and investor guidelines. Not all programs are available for all loans.

Flex Modification (Fannie Mae/Freddie Mac loans only)
FHA loss mitigation (FHA-HAMP, partial claim, streamlined)
VA and USDA modification options
Forbearance: short-term and long-term (3-12 months)
Repayment plans for temporary hardship
Short sale and deed-in-lieu with relocation assistance

Servicing Practices

  • Specialty servicing of non-performing and sub-performing loans
  • In-house default management and foreclosure processing
  • Loss mitigation department with tiered review structure
  • Escrow administration for non-performing loans
  • Bankruptcy monitoring and proof of claim filing
  • Investor reporting for private-label and distressed portfolios

Foreclosure Timeline

SPS, as a specialty servicer handling predominantly distressed loans, maintains an active foreclosure pipeline. In non-judicial states, SPS foreclosures typically complete in 90-150 days from referral. SPS has been cited by regulators for premature foreclosure referrals while loss mitigation applications were pending — the classic dual tracking pattern. In judicial states, timelines vary by jurisdiction.

Consumer Complaint Patterns

SPS ranks disproportionately high in CFPB complaints relative to its portfolio size. Top categories: struggling to pay mortgage, loan modification application delays, dual tracking (foreclosure proceeding during modification review), payment misapplication, and credit reporting errors. A notable pattern: SPS sends borrowers conflicting information — a letter saying modification is under review while simultaneously sending a foreclosure notice.

Regulatory Actions & Enforcement

SPS has been subject to CFPB supervisory activity and enforcement actions related to servicing practices. The CFPB's Supervisory Highlights identified servicing issues at specialty servicers consistent with SPS complaint data, including: failure to properly evaluate loss mitigation applications, premature foreclosure referrals, and failure to maintain adequate policies and procedures for loss mitigation processing.

Homeowner Tips for Working with SPS

1. SPS's entire business exists to handle distressed loans — document every interaction meticulously because SPS's processes are designed for volume, not individual attention. 2. If SPS sends you conflicting letters (one about loss mitigation, one about foreclosure), immediately request clarification in writing and file a CFPB complaint — this is a red flag for dual tracking. 3. Submit complete loss mitigation applications with a detailed cover letter and send by certified mail with return receipt AND fax (keep the fax confirmation). 4. If assigned a single point of contact, document every interaction — if SPS changes your SPOC without notice, this may be a RESPA violation.

How Professional Law Assist Helps with SPS Foreclosures

SPS's specialty servicing model makes these cases documentation battles. We audit the servicing file end-to-end, identify RESPA and TILA violations, enforce dual tracking protections, demand compliance with loss mitigation timelines, and leverage SPS's regulatory history to secure proper handling of your application. In our experience, SPS responds to formal legal intervention far more readily than to borrower self-advocacy.

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Frequently Asked Questions — SPS

Why does SPS service my loan instead of my original lender?
SPS is a specialty servicer that banks and investors use for managing higher-risk or non-performing loans. Your original lender or loan investor transferred the servicing rights to SPS because SPS specializes in handling loans that require intensive default management. While this means SPS has expertise in loss mitigation, it also means SPS is optimized for efficient default processing — which can create tension with individual borrower needs.
How do I know if SPS is violating dual tracking rules?
Key indicators: (1) You submitted a complete loss mitigation application but received a foreclosure notice dated after your submission. (2) SPS sent you a foreclosure sale date while a modification review was pending. (3) SPS told you your modification was 'under review' but you later learned foreclosure proceedings continued. Any of these suggest a RESPA dual tracking violation. Document the dates and contact an attorney.
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