Specialized Loan Servicing LLC Mortgage Complaint

Specialized Loan Servicing LLC Mortgage department,

Home equity loan or line of credit Loan servicing, payments, escrow account California

The Claim : Our HELOC mortgage payment sent to SLS Loan Servicing ( SLS ) in the amount of $10000.00 has been erroneously endorsed by - - ( - ) and misapplied and erroneously credited to an unknown account at -. SLS was notified of the error on -/-/- but to this date refuses to either acknowledge receipt of the check or to sign an Affidavit of Forgery or Misapplied Funds that will allow our bank, - - - ( - ), to pursue a claim against - for the erroneous endorsement and/or proper credit of the misapplied funds. The Facts : In -/-/- we opened a HELOC account with - -. That loan was apparently sold to a securitization owned by an unknown investor on an unknown date sometime before we made the first draw on the HELOC on -/-/-. Servicing on the HELOC was transferred to SLS sometime around -/-/-. We sent the $10000.00 mortgage payment by personal check ( the " Check '' ) to SLS via USPS addressed to their designated - in - GA ( see attached copy of front and back of the Check ). On -/-/- the Check was erroneously endorsed by


filed a claim with the Postal Inspector at the USPS and complained in writing to SLS requesting SLS to either correct the misapplication of funds or sign and send to - an Affidavit of Forgery or Misapplied Funds so - could pursue a claim against -. We signed and delivered such an affidavit to - on -/-/-. On -/-/- we contacted the - Ethics Line by email to request an investigation, since - or one of its clients was the apparent recipient of the misapplied funds. On -/-/- we received a letter from SLS ( copy attached ) disputing that they had ever received the Check and disclaiming any responsibility for the misapplication of the funds from the Check. Current Situation : The HELOC matures and final payment is due on -/-/-. We have paid the outstanding balance down to approximately $10000.00 but will have difficulty paying off that remaining balance if we do not recover the $10000.00 in misapplied funds. We have an on-going ethics investigation pending at -, and have recently discovered that the loan syndication may have been purchased by -, who SLS told - Ethics is currently the owner of the HELOC. ( - = - - - - -. ) Since we are still investment clients of - -, we have requested an investigation at that entity as well. In our view, the funds are currently held by - on behalf of -, but the funds were erroneously deposited in the wrong - account by SLS. However, - has now essentially washed their hands of the situation ( see attached letter ), even though they are the key to tracing the funds at - either through their auditing of the internal routing of the Check, or by providing the necessary affidavit to - so it can trace the source of the erroneous endorsement at -.