EXCEL CMP SAMPLE Koustis V SPS Class Action Via Marc Dann

Case: 1:20-cv-02425-DAP Doc #: 1 Filed: 10/26/20 1 of 25.
PageID #: 1
UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF OHIO
EASTERN DIVISION AT CLEVELAND
GEORGE G. KOUSTIS, individually and on Case No.

behalf of all others similarly situated,
c/o Dann Law CLASS ACTION COMPLAINT FOR
P.O. Box 6031040 DAMAGES
Cleveland, OH 44113
DEMAND FOR JURY TRIAL
RONALD J. COLLINS, individually and on
behalf of all others similarly situated,
c/o Dann Law
P.O. Box 6031040
Cleveland, OH 44113
Plaintiffs,
v.
SELECT PORTFOLIO SERVICING, INC.

c/o Corporation Service Company
50 West Broad Street, Suite 1330
Columbus, OH 43215
Defendant.
Plaintiffs George C. Koustis and Ronald J. Collins, individually, and on behalf of all others
similarly situated, by and through counsel, bring this action against Defendant Select Portfolio
Servicing, Inc., and for their Class Action Complaint state:
PARTIES, JURISDICTION, AND VENUE
1. Plaintiff George G. Koustis (“Koustis”) is a natural person residing in Geauga
County, Ohio.
2. Plaintiff Ronald J. Collins (“Collins”) is a natural person residing in Palm Beach
County, Florida. Koustis and Collins shall be referred to collectively as “Plaintiffs”.
Koustis, et al. v. Select Portfolio Servicing, Inc.

Class Action Complaint for Damages: Page 1
Case: 1:20-cv-02425-DAP Doc #: 1 Filed: 10/26/20 2 of 25. PageID #: 2
3. Defendant Select Portfolio Servicing, Inc. (“Defendant” or “SPS”) is a federal
depository institution incorporated under the laws of the State of Utah, and, upon belief, maintains
its headquarters located in Salt Lake City, Utah.
4. SPS does business in the state of Ohio and is licensed to do business in the state of
Ohio as a foreign corporation.
5. This Court has subject matter jurisdiction over this action under 28 U.S.C. § 1331,
as this action arises under the Real Estate Settlement Procedures Act, 12 U.S.C. §§ 2601, et seq.
(“RESPA”).
6. Venue lies in this District pursuant to 28 U.S.C. § 1391(b), as a substantial part of
the events or omissions giving rise to the claims asserted herein occurred in this District.
RESPA AND REGULATION X
7. Congress enacted RESPA, in part, to ensure “that consumers throughout the nation
are provided with greater and timelier information on the nature and costs of the settlement process
and are protected from unnecessarily high settlement charges caused by abusive practices that have
developed in some areas of the country.” 12 U.S.C. § 2601(a). Since “Congress intended RESPA
to serve consumer-protection purposes[,] RESPA’s provisions relating to loan servicing
procedures should be ‘construed liberally’ to serve the statute’s remedial purpose.” Medrano v.
Flagstar Bank, FSB, 704 F.3d 661, 665-666 (9th Cir. 2012) (citations omitted).
8. To that end, RESPA permits a borrower (or an agent of a borrower) to submit a
“qualified written request” (“QWR”) to the servicer of the borrower’s “federally related mortgage
loan.” 12 U.S.C. § 2605(e)(1)(B). In sending a QWR to a mortgage loan servicer (“servicer”), a
borrower can either request information from the servicer, or assert that the borrower’s account is
in error. 12 U.S.C. § 2605(e)(1)(B)(ii).

9. RESPA provides that upon receipt of a QWR “a servicer of a federally related
mortgage loan…shall provide a written response acknowledging receipt of the correspondence
within 5 days (excluding legal public holidays, Saturdays, and Sundays) unless the action
requested is taken within such period.” 12 U.S.C. § 2605(e)(1)(A).
10. Regarding QWRs that request a servicer to correct an error related to the servicing
of a loan, RESPA provides that “not later than 30 days (excluding legal public holidays, Saturdays,
and Sundays) after the receipt from any borrower of any qualified written request…the servicer
shall…make appropriate corrections in the account of the borrower, including the crediting of any
late charges or penalties, and transmit to the borrower a written notification of such correction” or,
after conducting an investigation, “provide the borrower with a written explanation or clarification
that includes…a statement of the reasons for which the servicer believes the account of the
borrower is correct” either of which such notice “shall include the name and telephone number of
a representative of the servicer who can provide assistance to the borrower.” 12 U.S.C. §§
2605(e)(2)(A)-(B).
11. Regarding QWRs that request information as to a loan, RESPA provides that “not
later than 30 days (excluding legal public holidays, Saturdays, and Sundays) after the receipt from
any borrower of any qualified written request…the servicer shall…provide the borrower with a
written explanation or clarification that includes” the “information requested by the borrower or
an explanation of why the information requested is unavailable or cannot be obtained by the
servicer; and the name and telephone number of an individual employed by, or the office or
department of, the servicer who can provide assistance to the borrower.” 12 U.S.C. §
2605(e)(2)(C).

12. While some courts have limited servicers’ obligations under 12 U.S.C. § 2605(e)
to only QWRs that relate to the “servicing” of a mortgage loan, the statutory definition of QWRs
is not limited to only inquiries which relate to servicing. Medrano, 704 F.3d at 666, fn. 4. (“The
district court, like many courts that have addressed the issue, conflated the statutory analysis by
declaring that the letters were not qualified written requests because they did not request
information relating to servicing. Section 2605(e)(1)(B), which defines what is a qualified written
request, does not refer to ‘information relating to…servicing.’ Instead, that requirement derives
from § 2605(e)(1)(A), which requires, as conditions for triggering the duty to respond, both (1)
that the letter is a qualified written request and (2) that it requests information relating to servicing.
Although this distinction may be meaningless in most cases, we clarify that this opinion concerns
the interpretation of § 2605(e)(1)(A).”). In other words, a borrower’s inquiry or assertion of an
error need not relate to servicing in order to constitute a QWR, but if it does not, a servicer’s
obligations under 12 U.S.C. § 2605(e) are not triggered. E.g., Hock Huat Yap v. Deutsche Bank
Nat'l Trust Co., 2018 WL 4095167, at *3 (D. Ariz. Aug. 28, 2018) (“The Medrano court made
clear that the [requirement that a QWR relate to servicing] was actually regarding what would
trigger a servicer’s duty to acknowledge receipt of a QWR under Section 2605(e)(1)(A), which
requires that the request be a QWR and that the requested information in the QWR relate to the
servicing of the loan.”) (emphasis in original).
13. In light of some courts’ narrow interpretation of servicers’ duties under Section
2605(e) of RESPA, RESPA was amended through the Dodd-Frank Wall Street Reform and
Consumer Protection Act—Public Law No. 111-203, 124 Stat. 1376 (2010)—in part to add 12
U.S.C. § 2605(k) which imposed further obligations on servicers.

14. As amended, it is a violation of RESPA for a servicer to “fail to take timely action
to respond to a borrower’s requests to correct errors relating to allocation of payments, final
balances for purposes of paying off the loan, or avoiding foreclosure, or other standard servicer’s
duties.” 12 U.S.C. § 2605(k)(1)(C).
15. Further, RESPA, as amended, requires servicers to respond to inquiries from
borrowers seeking the identity and contact information of the owner or assignee of borrowers’
mortgage loans within ten (10) business days. 12 U.S.C. § 2605(k)(1)(D).
16. Moreover, in January 2013, pursuant to the authority granted by the Dodd-Frank
Wall Street Reform and Consumer Protection Act—Public Law No. 111-203, 124 Stat. 1376
(2010)—the Consumer Finance Protection Bureau (“CFPB”) issued a number of final rules
concerning mortgage markets in the United States—known as “Regulation X” and codified as 12
C.F.R. § 1024.1, et seq. Regulation X became effective on January 10, 2014.
17. Regulation X further expanded servicers’ obligations under RESPA because
RESPA, as amended, makes it unlawful for a servicer to “fail to comply with any other obligation
found by the Bureau of Consumer Financial Protection, by regulation, to be appropriate to carry
out the consumer protection purposes of this chapter.” 12 U.S.C. § 2605(k)(1)(E).
18. Through Regulation X, the CFPB has provided guidance for the interpretation of
certain RESPA provisions, including servicers’ duties when responding to borrowers’ QWRs.
Regulation X also imposed requirements upon servicers in responding to two (2) new categories
of correspondence from borrowers related to their mortgage loans; specifically, Requests for
Information (“RFIs”) and Notices of Error (“NOEs”). “While there is significant overlap between
QWRs and [NOEs] and [RFIs], the terms are not synonymous. The CFPB has made this clear in
its official interpretation of the regulations: ‘A qualified written request is just one form that a

written notice of error or information request may take. Thus, the error resolution and information
request requirements in §§ 1024.35 and 1024.36 apply as set forth in those sections irrespective of
whether the servicer receives a qualified written request.’ 12 C.F.R. § 1024, Supp. I.” E.g.,
Messina v. Green Tree Servicing, LLC, 210 F.Supp.3d 992, 1007 (N.D. Ill. 2016).
19. Relative to RFIs, Regulation X provides that “a servicer shall comply with the
requirements of this section for any written request for information from a borrower that includes
the name of the borrower, information that enables the servicer to identify the borrower’s mortgage
loan account, and states the information the borrower is requesting with respect to the borrower’s
mortgage loan.” 12 C.F.R. § 1024.36(a).
20. 12 C.F.R. § 1024.36(d)(1) provides that a servicer must respond to an RFI by either
“[p]roviding the borrower with the requested information and contact information, including a
telephone number, for further assistance in writing” or “[c]onducting a reasonable search for the
requested information and providing the borrower with a written notification that states that the
servicer has determined that the requested information is not available to the servicer, provides the
basis for the servicer’s determination, and provides contact information, including a telephone
number, for further assistance.”
21. Notwithstanding the foregoing, Regulation X provides for certain exceptions to
servicers’ obligations to respond to RFIs. For example, 12 C.F.R. § 1024.36(f)(1) provides that a
servicer does not have to comply with 12 C.F.R. § 1024.36(d) if the request seeks substantially the
same information as a prior request, the information sought is confidential, proprietary, or
privileged, the information is not directly related to the borrower’s specific mortgage loan account,
or the request is overbroad or unduly burdensome.

22. If a servicer determines that it is exempted from responding to an RFI, pursuant to
12 C.F.R. § 1024.36(f)(1), Regulation X requires the servicer to “notify the borrower of its
determination in writing not later than five days (excluding legal public holidays, Saturdays, and
Sundays) after making such determination,” setting forth the specific “basis under paragraph (f)(1)
of this section upon which the servicer has made such determination.” 12 C.F.R. § 1024.36(f)(2).
23. Importantly, unlike QWRs, RFIs do not need to relate directly to “servicing” in
order to trigger the aforementioned duties under Regulation X. The CFPB specifically addressed
the “servicing” issue in its commentary on 12 C.F.R. § 1024.36(f): “While the final rule does not
require that servicers undertake the information request procedures in § 1024.36(c) and (d) for oral
submissions, it does not limit information requests to those related to servicing.” 78 F.R. 10696,
10761 (emphasis added). Therefore, a servicer is required to respond to “any written request for
information,” and the scope of 12 C.F.R. § 1024.36(a) is not limited to “requests relating to
servicing.” E.g., Pollack v. Seterus, Inc., Civil Action No. 17-60475-Civ, 2017 U.S. Dist. LEXIS
202827, at *8-9 (S.D. Fla. Dec. 7, 2017); St. Claire v. Ditech Fin. LLC, No. 1:17-CV-03370-AT-
JFK, 2018 U.S. Dist. LEXIS 219661, at *11 (N.D. Ga. Sept. 21, 2018).
24. Relative to NOEs, Regulation X provides that “[a] servicer shall comply with the
requirements of this section for any written notice from the borrower that asserts an error and that
includes the name of the borrower, information that enables the servicer to identify the borrower’s
mortgage loan account, and the error the borrower believes has occurred…A qualified written
request that asserts an error relating to the servicing of a mortgage loan is a notice of error for
purposes of this section, and a servicer must comply with all requirements applicable to a notice
of error with respect to such qualified written request.” 12 C.F.R. § 1024.35(a).

25. 12 C.F.R. § 1024.35(e)(1) provides that a servicer must respond to an NOE by
either “[c]orrecting the error or errors identified by the borrower and providing the borrower with
a written notification of the correction, the effective date of the correction, and contact information,
including a phone number, for further assistance” or “[c]onducting a reasonable investigation and
providing the borrower with written notification that includes a statement that the servicer has
determined that no error occurred, a statement of the reason or reasons for this determination, a
statement of the borrower’s right to request documents relied upon by the servicer in reaching its
determination, information regarding how the borrower can request such documents, and contact
information, including a phone number, for further assistance.”
26. Notwithstanding the foregoing, Regulation X provides for certain exceptions to
servicers’ obligations to respond to NOEs. For example, 12 C.F.R. § 1024.35(g)(1) provides that
a servicer does not have to comply with 12 C.F.R. § 1024.35(e) if the NOE asserts an error that is
substantially similar to an error that the servicer has previously adequately addressed, the NOE is
so vague that the servicer cannot reasonably determine the specific error being asserted, or the
servicer no longer services the loan, such that the NOE is untimely.
27. If a servicer determines that it is exempted from responding to an NOE, pursuant
to 12 C.F.R. § 1024.35(g)(1), Regulation X requires the servicer to “notify the borrower of its
determination in writing not later than five days (excluding legal public holidays, Saturdays, and
Sundays) after making such determination,” setting forth the specific “basis under paragraph (g)(1)
of this section upon which the servicer has made such determination.” 12 C.F.R. § 1024.35(g)(2).
28. Further, in issuing Regulation X, the CFPB explained how the scope of NOEs are
broader than that of QWRs, in that “standard servicer duties,” as referenced in 12 U.S.C. §
2605(k)(1)(C), “are those typically undertaken by servicers in the ordinary course of business.

Such duties include not only the obligations that are specifically identified in section 6(k)(1)(C) of
RESPA, but also those duties that are defined as ‘servicing’ by RESPA, as implemented by this
rule, as well as duties customarily undertaken by servicers to investors and consumers in
connection with the servicing of a mortgage loan. These standard servicer duties are not limited
to duties that constitute ‘servicing,’ as defined in this rule, [emphasis added] and include, for
example, duties to comply with investor agreements and servicing program guides, to advance
payments to investors, to process and pursue mortgage insurance claims, to monitor coverage for
insurance (e.g., hazard insurance), to monitor tax delinquencies, to respond to borrowers regarding
mortgage loan problems, to report data on loan performance to investors and guarantors, and to
work with investors and borrowers on options to mitigate losses for defaulted mortgage loans.” 78
Fed. Reg. 10696, 10739.
29. Finally, RESPA and Regulation X impose requirements on servicers to respond to
certain other inquiries from borrowers, even if those inquiries do not constitute QWRs, RFIs, or
NOEs.
30. For example, as noted above, RESPA requires servicers to respond to inquiries
from borrowers seeking the identity and contact information of the owner or assignee of
borrowers’ mortgage loans within ten (10) business days, regardless of whether those inquiries are
QWRs or RFIs. 12 U.S.C. § 2605(k)(1)(D).
31. Similarly, 12 C.F.R. § 1024.35(b)(6) permits a borrower to submit an NOE
regarding a servicer’s “failure to provide an accurate payoff balance amount upon a borrower’s
request,” even though a request for a payoff balance is governed by 12 C.F.R. § 1026.36(c)(3),
and not the provisions of Regulation X relating to RFIs and NOEs.

32. As used herein, these types of inquiries—which necessitate a response under
RESPA or Regulation X, and/or give rise to grounds to assert an error pursuant to 12 C.F.R. §
1024.35(b)—will be referred to as “Other Covered Inquiries.” Collectively, QWRs, RFIs, NOEs,
and Other Covered Inquiries will be hereinafter referred to as “Borrower Inquiries.”
STATEMENT OF FACTS
33. SPS is a mortgage “servicer” as that term is defined by 12 C.F.R. § 1024.2(b) and
12 U.S.C. § 2605(i)(2). SPS is the current servicer of Plaintiffs’ and Class (defined infra) members’
notes, and mortgages on real property that secure those notes (collectively referred to hereinafter
as the “loans”).
34. Plaintiffs’ and Class members’ loans are each a “federally related mortgage loan”
as defined by RESPA and Regulation X. 12 U.S.C. § 2602(1); 12 C.F.R. § 1024.2(b).
35. As such, SPS is subject to the requirements of RESPA and Regulation X, and does
not qualify for the exception for “small servicers”—as defined by 12 C.F.R. § 1026.41(e)(4)—nor
for the exemption for a “qualified lender”—as defined by 12 C.F.R. § 617.7000.
36. Plaintiffs and Class members each submitted one or more Borrower Inquiries—as
defined by 12 U.S.C. § 2605(e)(1)(B), 12 C.F.R. §§ 1024.35 and 1024.36, and/or otherwise falling
within the purview of 12 U.S.C. §§ 2605(k)(1)—to Wells Fargo.
37. Plaintiffs and Class members each submitted their Borrower Inquiries to SPS at the
address, email address, and/or facsimile number SPS designated for receipt of NOEs and RFIs,
pursuant to 12 C.F.R. § 1024.35(c) and 12 C.F.R. § 1024.36(d), respectively (the “Designated
Address”).
38. In response to Plaintiffs’ and Class members’ Borrower Inquiries, SPS replied with
form letters (the “Active Litigation Letters”) each stating that:

The issues presented in the inquiries are part of an ongoing litigation. SPS
is aware of the issues presented in your letter and would like to work with
you to reach a resolution. Due to the current litigation, SPS believes that it
would be more appropriate to refrain from providing a detailed response to
you at this time. We encourage you to continue working with our legal
counsel to determine the available resolution options.
SPS did not otherwise make a substantive response to Plaintiffs’ and Class members’ Borrower
Inquiries following the issuance of the Active Litigation Letters.
39. Although 12 C.F.R. § 1024.35(g) and 12 C.F.R. § 1024.36(f) each set forth certain
exceptions to SPS’s requirement to respond to Plaintiffs’ and Class members’ Borrower Inquiries,
there is no “active litigation” exception to SPS’s obligation to respond to Borrower Inquiries under
RESPA or Regulation X. 1
40. As such, SPS failed to provide adequate written responses to Plaintiffs’ and Class
members’ Borrower Inquiries as required by 12 C.F.R. § 1024.35(e), 12 C.F.R. § 1024.36(d), and
12 U.S.C. § 2605(k)(1).
41. Specifically, relative to Plaintiffs and members of the Class who submitted RFIs,
SPS did not provide the requested information or documentation pertaining to the specific
information sought in those RFIs, as required by 12 C.F.R. § 1024.36 and 12 U.S.C. §§
2605(k)(1)(D) and (E). This includes, but is not limited to, Plaintiffs’ and Class members’ RFIs
which also constituted QWRs.
1
See Schmidt v. Wells Fargo Bank, N.A., 2:17-cv-01708, at *3 (D. N.J. Oct. 8, 2019) (“[T]he Court agrees
with Judge Falk's decision not to read a "litigation exception" into the statute. Op. at 5 (Nov. 30, 2018).
Defendants do not cite any statute or regulation providing for such an exception and the Court is
unconvinced by the sources referenced. See Op. at 15-18. First, Judge Falk was correct as to the relevance
and persuasiveness of In Re Wiggins, No. 12-26993 (JKS), 2016 WL 7115864 (Bankr. D. N.J. Dec. 6,
2016). See Op. at 5 (Nov. 30, 2018). Second, in Bullock v. Ocwen Loan Servicing, LLC, the defendant's
response was deemed substantively sufficient and the court did not rely on a litigation exception. 14-cv-
3836, 2016 WL 1588494, at *2 n.6 (D. Md. Apr. 18, 2016).”).

42. Similarly, relative to Plaintiffs and members of the Class who submitted NOEs,
SPS did not correct any errors or conduct any investigation into the errors asserted in those NOEs,
as required by 12 C.F.R. § 1024.35 and 12 U.S.C. §§ 2605(k)(1)(C) and (E). This includes, but is
not limited to, Plaintiffs’ and Class members’ NOEs which also constituted QWRs.
43. Relative to Plaintiffs and members of the Class who submitted Other Covered
Inquiries, SPS did not provide the requested information or documentation, and/or did not take
timely action to correct errors asserted therein, as required by 12 U.S.C. § 2605(k)(1). This
includes, but is not limited to, Plaintiffs’ and Class members’ Other Covered Inquiries which also
constituted QWRs.
44. As a result of SPS’s failure to comply with RESPA and Regulation X, Plaintiffs
and Class members were each harmed because they incurred the expenses associated with sending
Borrower Inquiries—such as their time, postage, etc.—but they either did not receive the
information to which they were legally entitled or did not receive a reasonable investigation of the
purported errors regarding their loans, as required under RESPA and Regulation X. Indeed,
because SPS “failed to do that which it was obligated to do [under RESPA]” the time and expense
associated with Plaintiffs’ and Class members’ submission of RFIs and NOEs to SPS
“metamorphosed into damages.” Marais v. Chase Home Fin., LLC, 24 F.Supp.3d 712, 728 (S.D.
Ohio 2014); Justice v. Ocwen Loan Servicing, 2015 WL 235738, at *19 (S.D. Ohio 2015);
McMillen v. Resurgent Capital Services, L.P., 2015 WL 5308236, at *10 (S.D. Ohio 2015); Dale
v. Selene Fin. LP, 2016 WL 6024580, at *3 (N.D. Ohio 2016).
45. Subsequently, Plaintiffs and certain Class members—i.e., members of the Subclass
(defined below)—sent NOEs to SPS concerning SPS’s insufficient responses to their initial
Borrower Inquiries.

46. Had SPS adequately responded to Plaintiffs’ and Subclass members’ Borrower
Inquiries, Plaintiffs and Subclass members would not have needed to send NOEs regarding SPS’s
erroneous assertion of an “active litigation” exception to its obligations under RESPA and
Regulation X. As such, Plaintiffs and Subclass members were further harmed by SPS’s failure to
adequately respond to their Borrower Inquiries, as it required them to incur the expenses associated
with sending these subsequent NOEs—such as their time, postage, etc.
47. SPS’s practice of sending Active Litigation Letters and failing to provide
substantive responses to Borrower Inquiries is part of a sustained pattern and practice of
noncompliance with RESPA and Regulation X. Indeed, SPS’s conduct was already the subject of
a prior class action lawsuit filed in the Northern District of Ohio, and, upon information and belief,
other individual lawsuits across the country. E.g., Keating v. Select Portfolio Servicing, Inc., Case
No. 1:19-CV-00852-CAB (N.D. Ohio).
48. As a majority of homeowners sending Borrower Inquiries are involved in defending
against foreclosure, permitting this kind of conduct would allow mortgage servicers and
creditors—such as SPS—to unjustly hide behind the foreclosure process to unlawfully extinguish
their obligations under RESPA and Regulation X.
49. Plaintiffs and Class members are asserting claims for relief against SPS for breach
of the duties owed to them, pursuant to 12 U.S.C. §§ 2605(e)(2) and (k)(1), 12 C.F.R. § 1024.35,
and 12 C.F.R. § 1024.36.
50. Plaintiffs and Class members have a private right of action, pursuant to 12 U.S.C.
§ 2605(f), for the claimed breaches, and RESPA provides for remedies including actual damages,
costs, statutory damages, and attorneys’ fees.

FACTS RELEVANT TO PLAINTIFFS

Plaintiff Koustis
51. Koustis, through counsel, sent two (2) Borrower Inquiries dated May 21, 2020 to
SPS via certified mail to the Designated Address (the “Koustis Inquiries”). See, the Koustis
Inquiries, attached hereto as Exhibit 1. The Koustis Inquiries consisted of an RFI and two (2)
Other Covered Inquiries, a request for a payoff statement pursuant to 12 C.F.R. § 1026.36(c)(3)
coupled with a request for the “identity, address, and other relevant contact information about the
owner or assignee of [his] loan” as contemplated by 12 U.S.C. § 2605(k)(1)(D).
52. Koustis did not receive a copy of a payoff statement as requested by the Koustis
Inquiries.
53. On or about June 26, 2020, SPS sent an Active Litigation Letter to Koustis’s
counsel stating that it would not be providing a detailed response to the Koustis Inquiries because
his account and the issues presented in the Koustis Inquiries “are part of an ongoing litigation”
(the “First Koustis Active Litigation Letter”). See, the First Koustis Active Litigation Letter,
attached hereto as Exhibit 2.
54. Nonetheless, on or about June 26, 2020, SPS sent a copy of the “Servicing File” for
Koustis’s loan to Koustis’s counsel, but this was incomplete as it contained incomplete or partial
versions of documents requested and otherwise did not contain all the information requested by
and through the Koustis Inquiries.
55. Since Koustis did not receive a payoff statement as requested through the Koustis
Inquiries, on July 6, 2020, Koustis, through counsel, sent an NOE to SPS via certified mail to the
Designated Address (the “First Koustis NOE”). See, the First Koustis NOE, attached hereto as
Exhibit 3.

56. On or about July 28, 2020, SPS sent an Active Litigation Letter to Koustis’s counsel
stating that it would not be providing a detailed response to the First Koustis NOE because his
account and the issues presented in the First Koustis NOE “are part of an ongoing litigation” (the
“Second Koustis Active Litigation Letter”). See, the Second Koustis Active Litigation Letter,
57. Since Koustis did not receive all the information requested through the RFI portion
of the Koustis Inquiries, on August 10, 2020, Koustis, through counsel, sent an NOE to SPS via
certified mail to the Designated Address (the “Second Koustis NOE”). See, the Second Koustis
NOE, attached hereto as Exhibit 5.
58. On or about August 14, 2020, SPS sent an Active Litigation Letter to Koustis’s
counsel stating that it would not be providing a detailed response to the Second Koustis NOE
because his account and the issues presented in the Second Koustis NOE “are part of an ongoing
litigation” (the “Third Koustis Active Litigation Letter”). See, the Third Koustis Active Litigation
Letter, attached hereto as Exhibit 6.
59. Since Koustis had still not received a payoff statement as requested through the
Koustis Inquiries and through the First Koustis NOE, on August 18, 2020, Koustis, through
counsel, sent an NOE to SPS via certified mail to the Designated Address (the “Third Koustis
NOE”). See, the Third Koustis NOE, attached hereto as Exhibit 7.
60. On or about September 2, 2020, Koustis received a copy of a payoff statement for
his loan via facsimile from SPS’s counsel in response to the Third Koustis NOE.
61. On or about September 16, 2020, SPS sent an Active Litigation Letter to Koustis’s
counsel stating that it would not be providing a detailed response to the Third Koustis NOE because
his account and the issues presented in the Third Koustis NOE “are part of an ongoing litigation”

(the “Fourth Koustis Active Litigation Letter”). See, the Fourth Koustis Active Litigation Letter,
62. Koustis was harmed by SPS’s failure to respond to the Koustis Inquiries because
Koustis incurred costs relative to sending the Koustis Inquiries—such as postage and attorneys’
fees—but did not receive the information to which he was legally entitled, pursuant to RESPA and
Regulation X. Indeed, as noted above, when SPS “failed to do that which it was obligated to do
[under RESPA]” in response to the Koustis Inquiries, the time and expense associated with
Koustis’s submission of the Koustis Inquiries “metamorphosed into damages.” E.g., Marais, 24
F.Supp.3d at 728.
63. Had SPS responded to the Koustis Inquiries, Koustis would not have needed to send
the First Koustis NOE or the Second Koustis NOE to SPS.
64. Koustis was also harmed by SPS’s failure to respond to the Koustis Inquiries
because Koustis incurred costs relative to sending the First Koustis NOE and the Second Koustis
NOE that he would not otherwise have incurred—such as postage and attorneys’ fees—had SPS
properly responded to the Koustis Inquiries.
65. Had SPS responded to the First Koustis NOE, Koustis would not have needed to
send the Third Koustis NOE to SPS.
66. Koustis was also harmed by SPS’s failure to respond to the First Koustis NOE
because Koustis incurred costs relative to sending the Third Koustis NOE that he would not
otherwise have incurred—such as postage and attorneys’ fees—had SPS properly responded to the
First Koustis NOE.
67. In addition to the harm Koustis incurred as a result of SPS’s failure to properly
respond to the Koustis Inquiries, Koustis was harmed by SPS’s failure to respond to the First

Koustis NOE and the Second Koustis NOE because Koustis incurred costs relative to sending the
such correspondence—such as postage and attorneys’ fees—but SPS did not perform the
investigation into the errors he asserted, as required by RESPA and Regulation X. Indeed, as noted
above, when SPS “failed to do that which it was obligated to do [under RESPA]” in response to
the First Koustis NOE and the Second Koustis NOE, the time and expense associated with
Koustis’s submission of such correspondence “metamorphosed into damages.” E.g., Marais, 24
F.Supp.3d at 728.
Plaintiff Collins
68. On or about January 22, 2019, SPS sent correspondence to Collins stating that SPS
“can confirm that Ronald J. Collins is the successor in interest” in relation to the loan at issue. 2
69. Collins, through counsel, sent a Borrower Inquiry dated February 15, 2019 to SPS
via certified mail to the Designated Address (the “First Collins Inquiry”) and a Borrower Inquiry
dated February 19, 2019 to SPS via certified mail to the Designate Address (the “Second Collins
Inquiry”). See, the First Collins Inquiry and the Second Collins Inquiry (collectively, the “Collins
Inquiries”), attached hereto as Exhibit 9. The First Collins Inquiry consisted of an RFI. The Second
Collins Inquiry consisted of an NOE.
70. On or about March 4, 2019, SPS sent an Active Litigation Letter to Collins’s
counsel stating that it would not be providing a detailed response to the Collins Inquiries because
his account and the issues presented in the Collins Inquiries “are part of an ongoing litigation” (the
2
“A confirmed successor in interest shall be considered a borrower for purposes of § 1024.17 and this
subpart.” 12 C.F.R. § 1024.30(d). “With respect to the written request, a servicer shall treat the potential
successor in interest as a borrower for purposes of the requirements of paragraphs (c) through (g) of this
section.” 12 C.F.R. § 1024.36(i)(1).

“First Collins Active Litigation Letter”). See, the First Collins Active Litigation Letter, attached
hereto as Exhibit 10.
71. Since Collins did not receive a response containing the information requested or a
response to the errors alleged through the Collins Inquiries, on April 1, 2020, Collins, through
counsel, sent an NOE to SPS via certified mail to the Designated Address (the “First Collins
NOE”). See, the First Collins NOE, attached hereto as Exhibit 11.
72. Collins was harmed by SPS’s failure to respond to the Collins Inquiries because
Collins incurred costs relative to sending the Collins Inquiries—such as postage and attorneys’
fees—but did not receive the information to which he was legally entitled, pursuant to RESPA and
Regulation X. Indeed, as noted above, when SPS “failed to do that which it was obligated to do
[under RESPA]” in response to the Collins Inquiries, the time and expense associated with
Collins’s submission of the Collins Inquiries “metamorphosed into damages.” E.g., Marais, 24
F.Supp.3d at 728.
73. Had SPS responded to the Collins Inquiries, Collins would not have needed to send
the First Collins NOE to SPS.
74. Collins was also harmed by SPS’s failure to respond to the Collins Inquiries
because Collins incurred costs relative to sending the First Collins NOE that he would not
otherwise have incurred—such as postage and attorneys’ fees—had SPS properly responded to the
Collins Inquiries.
CLASS ACTION ALLEGATIONS
75. Class Definition: Plaintiffs bring this action pursuant to Fed. R. Civ. P. 23 on
behalf of a class of similarly situated individuals and entities (the “Class”), defined as follows:
All loan borrowers in the United States (1) who submitted to SPS a
Borrower Inquiry, in the form of a QWR, RFI, NOE, and/or Other Covered

Inquiry, and (2) to whom SPS refused to provide a complete response

relative to the information requested and/or perform an investigation into
the errors asserted therein on the grounds that “the issues presented in the
inquiries are part of an ongoing litigation”—i.e., to whom SPS sent an
Active Litigation Letter.
Excluded from the Class are: (1) Defendant, Defendant’s agents,

subsidiaries, parents, successors, predecessors, and any entity in which
Defendant or its parents have a controlling interest, and those entities’
current and former employees, officers, and directors; (2) the Judge to
whom this case is assigned and the Judge’s immediate family; (3) any
person who executes and files a timely request for exclusion from the Class;
(4) any persons who have had their claims in this matter finally adjudicated
and/or otherwise released; and (5) the legal representatives, successors and
assigns of any such excluded person.
76. Subclass Definition: Plaintiffs also bring this action pursuant to Fed. R. Civ. P. 23
on behalf of a subclass of similarly situated individuals and entities (“the Subclass”), defined as
follows:
All loan borrowers in the United States (1) who submitted to SPS a
Borrower Inquiry, in the form of a QWR, RFI, NOE, and/or Other Covered
Inquiry, and (2) to whom SPS refused to provide a complete response
relative to the information requested and/or perform an investigation into
the errors asserted therein on the grounds that “the issues presented in the
inquiries are part of an ongoing litigation”—i.e., to whom SPS sent an
Active Litigation Letter—and (3) who submitted to SPS an NOE, as defined
by 12 C.F.R. § 1024.35 or otherwise covered under 12 U.S.C. §
2605(k)(1)(C), related to SPS’s response.
Excluded from the Subclass are: (1) Defendant, Defendant’s agents,

subsidiaries, parents, successors, predecessors, and any entity in which
Defendant or its parents have a controlling interest, and those entities’
current and former employees, officers, and directors; (2) the Judge to
whom this case is assigned and the Judge’s immediate family; (3) any
person who executes and files a timely request for exclusion from the
Subclass; (4) any persons who have had their claims in this matter finally
adjudicated and/or otherwise released; and (5) the legal representatives,
successors and assigns of any such excluded person.
77. Numerosity and Ascertainability: Upon information and belief, the Class is
comprised of more than forty (40) members, such that the Class is so numerous that joinder of all

members is impractical. This conclusion is reasonable because SPS is one of the largest mortgage
providers in the country, which, as of June 30, 2018, serviced 658,260 loans in the United States
totaling $111,489,380,000 in unpaid principal balances in aggregate. 3 While the exact number of
members in the Class is presently unknown and can only be ascertained through discovery, Class
members can easily be identified through Defendant’s records or by other means.
78. Commonality and Predominance: All members of the Class have been subject to
and affected by a uniform course of conduct; specifically, SPS refusing to provide a substantive
response to Borrower Inquiries by claiming an “active litigation” exception. There are questions
of law and fact common to the proposed Class that predominate over any individual questions,
including:
a. Whether SPS sent Active Litigation Letters in response to Plaintiffs’ and

Class members’ Borrower Inquiries;
b. Whether SPS’s Active Litigation Letters failed to provide substantive

responses to Plaintiffs’ and Class members’ Borrower Inquiries in violation
of RESPA and Regulation X;
c. Whether SPS’s practice of sending Active Litigation Letters is a sustained

pattern and practice of noncompliance with RESPA and Regulation X;
d. Whether Plaintiffs and Class members suffered actual damages, and the
measure and amount of those damages; and,
e. Whether Plaintiffs and Class members are entitled to recover statutory

damages.
79. Typicality: Plaintiffs’ claims are typical of the claims of the Class. Plaintiffs and
Class members were denied a substantive response to which they were entitled because Defendant
3
Servicer Evaluation Select Portfolio Servicing Inc., S&P Global Ratings, December 21, 2018
(https://www.standardandpoors.com/en_US/web/guest/article/-/view/sourceId/10806518) (last accessed
October 14, 2020).

unlawfully refused to produce information due to an erroneous “active litigation” exception, and
Plaintiffs and Class members incurred damages as a result.
80. Adequacy: Plaintiffs will adequately represent the interests of the Class and do not
have adverse interests to the Class. Plaintiffs’ counsel has extensive experience litigating consumer
class actions.
81. Superiority: A class action is the superior method for the quick and efficient
adjudication of this controversy. If individual Class members prosecuted separate actions it may
create a risk of inconsistent or varying judgments that would establish incompatible standards of
conduct.
COUNT I
(Violations of 12 U.S.C. § 2605(e)(2), 12 U.S.C. § 2605(k)(1),
12 C.F.R. § 1024.35, and 12 C.F.R. § 1024.36)
(On behalf of Plaintiffs and the Class)
82. Plaintiffs repeat and reallege paragraphs 1 through 81 with the same force and effect
as though fully set forth herein.
83. Plaintiffs and Class members submitted Borrower Inquiries to SPS at the
Designated Address.
84. Plaintiffs’ and Class members’ Borrower Inquiries requested specific information
related to their loans, and/or asserted that SPS committed specific errors related to the servicing of
their loans, as contemplated by, inter alia, 12 U.S.C. § 2605(e)(1), 12 C.F.R. § 1024.35, 12 C.F.R.
§ 1024.36, and/or 12 U.S.C. § 2605(k)(1).
85. SPS failed to provide a substantive written response to Plaintiffs’ and Class
members’ Borrower Inquiries and/or failed to correct any of the errors asserted in Plaintiffs’ and
Class members’ Borrower Inquiries within the applicable timeframes of seven (7), ten (10), or
thirty (30) business days of receipt—that is, within seven (7), ten (10), or thirty (30) business days

of arrival at the Designated Address—as required by 12 U.S.C. § 2605(e)(2), 12 C.F.R. §
1024.35(e), 12 C.F.R. § 1024.36(d), and 12 U.S.C. § 2605(k)(1). Instead, SPS replied to Plaintiffs’
and Class members’ Borrower Inquiries with Active Litigation Letters.
86. SPS’s failure to provide appropriate responses to Plaintiffs’ and Class members’
Borrower Inquiries within the applicable timeframes of seven (7), ten (10), or thirty (30) business
days of receipt constitutes a clear violation of the requirements of 12 U.S.C. § 2605(e)(2), 12
C.F.R. § 1024.35, 12 C.F.R. § 1024.36, and 12 U.S.C. § 2605(k)(1). Indeed, 12 C.F.R. §
1024.35(g) and 12 C.F.R. § 1024.36(f) do not provide for any such “active litigation” exception to
SPS’s duty to respond to Borrower Inquiries.
87. Plaintiffs and Class members were harmed because they incurred the expenses
associated with sending Borrower Inquiries—such as their time, postage, etc.—but did not timely
receive the information or responses to which they were legally entitled, pursuant to RESPA and
Regulation X.
88. SPS is evading its legal obligations and has effectively stripped borrowers of their
rights to submit Borrower Inquiries within and subject to the protective framework of RESPA by
claiming exceptions to its obligation to respond that have no basis in fact or law.
89. SPS’s actions are in continuation of a pattern and practice of behavior in conscious
disregard of the Plaintiffs’ and Class members’ rights.
90. As a result of SPS’s actions, SPS is liable to Plaintiffs and Class members for actual
damages, statutory damages, costs, and attorney fees. 12 U.S.C. §§ 2605(f)(2)-(3).
COUNT II
(Violations of 12 U.S.C. §§ 2605(k)(1)(C) and (E), and 12 C.F.R. § 1024.35)
(On behalf of Plaintiffs and the Subclass)

91. Plaintiffs repeat and reallege paragraphs 1 through 81 with the same force and effect
as though fully set forth herein.
92. Plaintiffs and Class members submitted Borrower Inquiries to SPS at the
Designated Address.
93. Plaintiffs’ and Class members’ Borrower Inquiries requested specific information
related to their loans, and/or asserted that SPS committed specific errors related to the servicing of
their loans, as contemplated by, inter alia, 12 U.S.C. § 2605(e)(1), 12 C.F.R. § 1024.35, 12 C.F.R.
§ 1024.36, and/or 12 U.S.C. § 2605(k)(1).
94. SPS failed to provide a substantive written response to Plaintiffs’ and Class
members’ Borrower Inquiries and/or failed to correct any of the errors asserted in Plaintiffs’ and
Class members’ Borrower Inquiries within the applicable timeframes of seven (7), ten (10), or
thirty (30) business days of receipt—that is, within seven (7), ten (10), or thirty (30) business days
of arrival at the Designated Address—as required by 12 U.S.C. § 2605(e)(2), 12 C.F.R. §
1024.35(e), 12 C.F.R. § 1024.36(d), and 12 U.S.C. § 2605(k)(1). Instead, SPS replied to Plaintiffs’
and Class members’ Borrower Inquiries with Active Litigation Letters.
95. SPS’s failure to provide appropriate responses to Plaintiffs’ and Class members’
Borrower Inquiries within the applicable timeframes of seven (7), ten (10), or thirty (30) business
days of receipt constitutes a clear violation of the requirements of 12 U.S.C. § 2605(e)(2), 12
C.F.R. § 1024.35, 12 C.F.R. § 1024.36, and 12 U.S.C. § 2605(k)(1). Indeed, 12 C.F.R. §
1024.35(g) and 12 C.F.R. § 1024.36(f) do not provide for any such “active litigation” exception to
SPS’s duty to respond to Borrower Inquiries.

96. As a result of SPS’s assertion of an erroneous “active litigation” exception to its
obligations under RESPA and Regulation X, Plaintiffs and Subclass members were required to
submit additional NOEs to SPS regarding that issue.
97. Had SPS adequately responded to Plaintiffs’ and Subclass members’ initial
Borrower Inquiries, Plaintiffs and Subclass members would not have needed to send additional
NOEs regarding SPS’s erroneous assertion of an “active litigation” exception to its obligations
under RESPA and Regulation X.
98. Plaintiffs and Subclass members were harmed by SPS’s failure to adequately
respond to their Borrower Inquiries because it required them to incur the time and expenses
associated with sending the subsequent NOEs after receiving Active Litigation Letters from SPS.
99. SPS is evading its legal obligations and has effectively stripped borrowers of their
rights to submit Borrower Inquiries within and subject to the protective framework of RESPA by
claiming exceptions to its obligation to respond that have no basis in fact or law.
100. SPS’s actions are in continuation of a pattern and practice of behavior in conscious
disregard of the Plaintiffs’ and Subclass members’ rights.
101. As a result of SPS’s actions, SPS is liable to Plaintiffs and Subclass members for
actual damages, statutory damages, costs, and attorney fees. 12 U.S.C. §§ 2605(f)(2)-(3).
PRAYER FOR RELIEF
WHEREFORE, Plaintiffs GEORGE G. KOUSTIS and RONALD J. COLLINS,
individually, and on behalf of the Class and Subclass, pray for an Order as follows:
A. Finding that this action satisfies the prerequisites for maintenance as a class action
and certifying the Class and/or Subclass defined herein;
B. Designating Plaintiffs as representatives of the Class and Subclass and their

undersigned counsel as Class Counsel;

C. Entering judgment in favor of Plaintiffs, the Class, and Subclass and against
Defendant;
D. Awarding Plaintiffs, the Class, and Subclass their actual damages and statutory
damages as allowed under RESPA;
E. Awarding Plaintiffs, the Class, and Subclass attorneys’ fees and costs, including
interest thereon, as allowed or required by law; and,
F. Granting all such further and other relief as this Court deems just and appropriate.
JURY DEMAND
Plaintiffs hereby request a trial by jury on all issues.
Respectfully submitted,
/s/Marc E. Dann
Marc E. Dann (0039425)
Daniel M. Solar (0085632)
Brian D. Flick (0081605)
DANN LAW
P.O. Box 6031040
Cleveland, OH 44103
Telephone: (216) 373-0539
notices@dannlaw.com
Thomas A. Zimmerman, Jr. (pro hac vice anticipated)

tom@attorneyzim.com
Matthew C. De Re (pro hac vice anticipated)
matt@attorneyzim.com
ZIMMERMAN LAW OFFICES, P.C.
77 W. Washington Street, Suite 1220
Chicago, Illinois 60602
Telephone: (312) 440-0020
Counsel for Plaintiffs George G. Koustis and Ronald J.

Collins and the Putative Class

Case: 1:20-cv-02425-DAP Doc #: 1-1 Filed: 10/26/20 1 of 14. PageID #: 26
EXHIBIT 1
Cleveland | Columbus | Cincinnati | New Jersey | New York
216-373-0539 Notices@DannLaw.com 216-373-0536

Telephone Email Fax
May 21, 2020
Select Portfolio Servicing, Inc.

P.O. Box 65277
Salt Lake City, UT 84165-0277
*Sent via Certified Mail return receipt requested [7015 1520 0001 6635 9490]
In the Matter of:
Borrower’s Name: George Koustis

Property Address: 11379 Woodiebrook Dr.
Munson Township, OH 44024
Mortgage Account No.:
**If responding to this correspondence by e-mail, please send to notices@dannlaw.com
Re: Request for information pursuant to 12 C.F.R. § 1024.36 including a request for a
payoff statement pursuant to 12 C.F.R. § 1026.36(c)(3)
Dear Sir or Madam:
This is a Request for Information related to your servicing of the mortgage loan of the above-
named borrower. All references herein are to Regulation X of the Mortgage Servicing Act as
amended by the Consumer Financial Protection Bureau pursuant to the Dodd Frank Act. The
written authority of the above-referenced borrower for this request to our law firm is enclosed.
Pursuant to 12 C.F.R. § 1024.36(d), you must respond to this request no later than ten (10) business
days after your receipt of such.
Please provide the following information within the time periods noted, supra:
1. The name, address, and appropriate contact information for the current owner or assignee
of the above-referenced mortgage loan.
a. If the above-referenced mortgage loan is held in a trust for which an appointed trustee
receives payments on behalf of such trust and Federal National Mortgage Association
(Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac) is the owner
of such loan or the trustee of the securitization trust in which the loan is held, please
also provide the name or number of the trust or pool in which such loan is held.
Mailing Address DannLaw.com Physical Address
PO Box 6031040 877-475-8100 2728 Euclid Ave Suite 300
Cleveland OH 44103 Cleveland OH 44115
EXHIBIT 1
2. The identity of and address for the master servicer of the above-referenced mortgage loan.
3. The identity of and address for the current servicer of the above-referenced mortgage loan.
Please be advised said request is also being made under 12 U.S.C. § 1641(f)(2) of the Truth in
Lending Act (TILA). For each violation of TILA, you may be liable to the borrower for actual
damages, costs, attorney fees, and statutory damages of up to Four Thousand Dollars ($4,000.00).
Furthermore, this is also a written request for a payoff statement related to the above-referenced
mortgage loan account for which you are the servicer.
Pursuant to 12 C.F.R. § 1026.36(c)(3), you “must provide an accurate statement of the total
outstanding balance that would be required to pay the consumer's obligation in full as of a specified
date” within a reasonable time after receipt of this request. Under no circumstances are you to fail
to provide the requested payoff statement within seven (7) business days of receipt of this request.
Best Regards,
Ashley Wilk
Enclosure
cc:

Borrower Authorization Select Portfolio Servicing, Inc.

Mortgage Servicer name
of Third Party
Customer Service/Loss Mitigation Phone Number
Borrower(s) name(s) George G. Koustis
Property address 11379 Woodiebrook Dr. Munson Twp, OH 44024
Mortgage loan account number(s)
Third Party Information (all applicable fields must be completed)
DannLaw 216-373-0539
Name of Entity, Agency, Firm Phone number
Marc Dann, Daniel Solar, Bill Behrens, Brian Flick, Javier Merino, Emily White, Whitney Kaster, Donna Taylor-Kolis,
Name(s) of authorized person(s) Michael Smith, Whitney Horton, Amy Collins, Edward Juhn, Mattie Williams, Karen Royko, Kaitlyn Capwill.
Mailing address P.O. Box 6031040, Cleveland, OH 44103
Office address 2728 Euclid Ste 300, Cleveland, OH 44115
Email notices@dannlaw.com Website URL www.dannlaw.com
Tax ID# 46-2722282 State license # (if required) Issuing state
For non-profit agencies only * For attorneys only **

Do you represent the above named Borrower for
HUD Approved Counseling Agency?
a workout arrangement with the named Servicer?
Yes No X Yes No
Approval valid until (date) Firm Name DannLaw
HUD HCS # Individual Attorney name(s) Marc Dann (OH), Dan Solar (OH)
Javier Merino (NJ, NY) Brian Flick (OH, KY)
* Attach National Foreclosure Mitigation Counseling Ohio, New York, New Jersey,
form if needed All states where licensed
Kentucky
** Attorney who represents Borrower must sign below
Third Party Acknowledgement
The undersigned, on behalf of the Third Party, represents that: (i) it is in compliance with Regulation O (Mortgage Assistance
Relief Services), if applicable, and all other applicable laws and regulations; and (ii) the Third Party information provided above
is true and correct. The undersigned acknowledges that a misrepresentation or omission of fact made in connection with a
government program such as Making Home Affordable may result in civil/criminal prosecution.
Signature of Third Party Date 03/26/2020
Printed name Marc E. Dann Title Managing Attorney
___ BORROWER INITIALS

1 of 2
Doc ID: 0b424f2559a5a2bb7ddeded3d21f4afd6f632a9e
BORROWER AUTHORIZATION OF THIRD PARTY
Borrower Authorization (please initial all items)
Third Party you are authorizing (from first page)
___ I (Borrowers listed below) authorize the above named Third Party to discuss, assist with, or, if applicable,
negotiate a workout arrangement on my mortgage(s) with the above named Mortgage Servicer (its affiliates,
agents, employees, and successors). A workout arrangement could include a modification or other relief.
___ I authorize my Mortgage Servicer, and Third Party and Treasury (and its agents) to share with each other
public and non-public information about my finances and my mortgage for the purpose of assisting me
in obtaining a workout arrangement, including but not limited to: (i) my mortgage payment history, terms
of my mortgage; and (ii) my social security number, credit score, income, debts and other information relat-
ed to obtaining and servicing my mortgage.
___ I understand that my Mortgage Servicer may contact me directly except in limited situations, such as when
I am represented by an attorney, and the Servicer and I must agree to any workout arrangement. I may still
contact my Mortgage Servicer at any time.
___ I understand that this Third Party Authorization Form may not be accepted by my Mortgage Servicer and my
Mortgage Servicer will notify me in writing if it is not accepted. Mortgage Loan Servicers have procedures
designed to detect fraud or improper activity and must follow privacy laws to protect borrower information.
This Authorization expires one year from the date signed unless Borrower cancels it earlier by writing to the Servicer
or by completing an Authorization of a different Third Party.
Do not sign this form until the form is fully completed. Keep a copy of this form.
Be aware of scams! Signature of borrower
Federal and State Printed name George Koustis Date 03 / 26 / 2020

government agencies
Last 4 digits of SSN
have prosecuted
hundreds of companies Phone # Email
and lawyers who illegally
charge up-front fees.
Signature of co-borrower
Report scams at George Koustis
Printed name Date
HOPE Hotline:
888-995-HOPE (4673)
Phone # Email
This form should be transmitted to the Mortgage Servicer as soon as possible and no later than 90 days
after the date signed.
2 of 2
Audit Trail
Title
Hello
File Name
RackMultipart20200122-18-irko55.pdf
Document ID
0b424f2559a5a2bb7ddeded3d21f4afd6f632a9e
Audit Trail Date Format
MM / DD / YYYY
Status Completed
This document was requested on dannlaw.cliogrow.com and signed on dannlaw.cliogrow.com
03 / 26 / 2020 Sent for signature to George Koustis (gkhcj@yahoo.com) from

17:46:01 UTC intake@dannlaw.com
IP: 73.255.231.212
03 / 26 / 2020 Viewed by George Koustis (gkhcj@yahoo.com)

17:58:27 UTC IP: 184.56.59.14
03 / 26 / 2020 Signed by George Koustis (gkhcj@yahoo.com)

18:02:14 UTC IP: 184.56.59.14
03 / 26 / 2020 The document has been completed.

18:02:14 UTC
Cleveland | Columbus | Cincinnati | New Jersey | New York
216-373-0539 Notices@DannLaw.com 216-373-0536

Telephone Email Fax
May 21, 2020
Select Portfolio Servicing, Inc.

P.O. Box 65277
Salt Lake City, UT 84165-0277
*Sent via Certified Mail return receipt requested [7015 1520 0001 6635 9483]
In the Matter of:
Borrower’s Name: George Koustis

Property Address: 11379 Woodiebrook Dr.
Munson Township, OH 44024
Mortgage Account No.:
**If responding to this correspondence by e-mail, please send to notices@dannlaw.com
Re: Request for Information Pursuant to 12 C.F.R. § 1024.36
Dear Sir or Madam:
This is a Request for Information related to your servicing of the above-referenced mortgage loan.
All references herein are to Regulation X of the Mortgage Servicing Act as amended by the
Consumer Financial Protection Bureau pursuant to the Dodd Frank Act. The written authority of
the above-referenced borrower (the “Borrower”) for this request to our law firm is enclosed.
Pursuant to 12 C.F.R. § 1024.36(c), you must provide our office with a written response
acknowledging your receipt of this request within five (5) business days of such. Pursuant to 12
C.F.R. § 1024.36(d)(ii)(2)(B), you must provide the information requested herein, infra, within
thirty (30) business days of your receipt of this request.
Please provide the following information within the time periods noted herein:
1. An exact reproduction of the life of loan mortgage transaction history for this loan from
the contract system of record from your electronic software program for this loan. For
purposes of identification, the life of loan transaction history means any software
program or system by which the servicer records the current mortgage balance, the
receipt of all payments, the assessment of any late fees or charges, and the recording of
any corporate advances for any fees or charges including but not limited to property
inspection fees, broker price opinion fees, legal fees, escrow fees, processing fees,

technology fees, or any other collateral charge. Also, to the extent this life of loan
transaction history includes in numeric or alpha-numeric codes, please attach a
complete list of all such codes and state in plain English a short description for each
such code.
2. Copies of any and all servicing notes related to your servicing of the above-referenced
mortgage loan from January 10, 2014.
3. Copies of any and all broker’s price opinions you performed or otherwise obtained for
the above-referenced property in relation to the above-referenced mortgage loan.
4. A true and accurate copy of the original note related to the above-referenced mortgage
loan.
5. A detailed copy of your last two (2) analyses of the escrow account of the mortgage.
6. A copy of an accurate and up-to-date reinstatement quote and/or reinstatement letter

showing the exact amount needed to cure any default or delinquency on the above-
referenced loan as well as a date through which such amount is to remain good and
valid.
7. Each date upon which you received a loss mitigation application, whether complete or
incomplete, from the Borrower regarding the Loan from January 10, 2014 to the
present. Please note that, pursuant to 12 C.F.R. § 1024.41(b)(1), a “complete loss
mitigation application” is defined as “an application in connection with which a
servicer has received all the information that the servicer requires from a borrower in
evaluating applications for the loss mitigation options available to the borrower.”
8. A copy of any written correspondence that you sent to the Borrower pursuant to or
otherwise in compliance with 12 C.F.R. § 1024.41(b)(2)(i)(B) regarding the Loan from
January 10, 2014 to the present. In other words, please provide a copy of any written
correspondence you sent to the Borrower notifying the Borrower as to whether any
submitted loss mitigation application was complete or incomplete, and if incomplete,
stating what documentation and/or information was necessary to complete such
application.
9. A copy of any written correspondence that you sent to the Borrower pursuant
to or otherwise in compliance with 12 C.F.R. § 1024.41(c)(1)(ii) regarding the
Loan from January 10, 2014 to the present. In other words, please provide a
copy of any written correspondence you sent to the Borrower notifying the
Borrower as to which loss mitigation options, if any, you would offer the

Borrower on behalf of the owner or assignee of the mortgage.
10. A copy of all trial period payment plans, loan modification agreements, or loss
mitigation agreements otherwise that you have offered to the Borrower,
regardless of whether they were accepted or rejected by the Borrower.
11. Each date upon which you received an executed loss mitigation agreement from
the Borrower regarding the Loan from January 10, 2014 to the present.
12. Each date upon which you received or otherwise came into possession of an
appeal of loss mitigation eligibility from the Borrower regarding the Loan from
January 10, 2014 to the present.
13. A copy of any written correspondence that you sent to the Borrower pursuant
to or otherwise in compliance with 12 C.F.R. § 1024.41(h)(4) regarding the
Loan from January 10, 2014 to the present. In other words, provide a copy of
any written correspondence you sent to the Borrower stating your determination
of whether you would offer the Borrower a loss mitigation option based upon
an appeal of your denial of the Borrower’s eligibility for any loss mitigation
option.
Best Regards,
Ashley Wilk
Enclosure
cc:

Borrower Authorization Select Portfolio Servicing, Inc.

Mortgage Servicer name
of Third Party
Customer Service/Loss Mitigation Phone Number
Borrower(s) name(s) George G. Koustis
Property address 11379 Woodiebrook Dr. Munson Twp, OH 44024
Mortgage loan account number(s)
Third Party Information (all applicable fields must be completed)
DannLaw 216-373-0539
Name of Entity, Agency, Firm Phone number
Marc Dann, Daniel Solar, Bill Behrens, Brian Flick, Javier Merino, Emily White, Whitney Kaster, Donna Taylor-Kolis,
Name(s) of authorized person(s) Michael Smith, Whitney Horton, Amy Collins, Edward Juhn, Mattie Williams, Karen Royko, Kaitlyn Capwill.
Mailing address P.O. Box 6031040, Cleveland, OH 44103
Office address 2728 Euclid Ste 300, Cleveland, OH 44115
Email notices@dannlaw.com Website URL www.dannlaw.com
Tax ID# 46-2722282 State license # (if required) Issuing state
For non-profit agencies only * For attorneys only **

Do you represent the above named Borrower for
HUD Approved Counseling Agency?
a workout arrangement with the named Servicer?
Yes No X Yes No
Approval valid until (date) Firm Name DannLaw
HUD HCS # Individual Attorney name(s) Marc Dann (OH), Dan Solar (OH)
Javier Merino (NJ, NY) Brian Flick (OH, KY)
* Attach National Foreclosure Mitigation Counseling Ohio, New York, New Jersey,
form if needed All states where licensed
Kentucky
** Attorney who represents Borrower must sign below
Third Party Acknowledgement
The undersigned, on behalf of the Third Party, represents that: (i) it is in compliance with Regulation O (Mortgage Assistance
Relief Services), if applicable, and all other applicable laws and regulations; and (ii) the Third Party information provided above
is true and correct. The undersigned acknowledges that a misrepresentation or omission of fact made in connection with a
government program such as Making Home Affordable may result in civil/criminal prosecution.
Signature of Third Party Date 03/26/2020
Printed name Marc E. Dann Title Managing Attorney
___ BORROWER INITIALS

1 of 2
BORROWER AUTHORIZATION OF THIRD PARTY
Borrower Authorization (please initial all items)
Third Party you are authorizing (from first page)
___ I (Borrowers listed below) authorize the above named Third Party to discuss, assist with, or, if applicable,
negotiate a workout arrangement on my mortgage(s) with the above named Mortgage Servicer (its affiliates,
agents, employees, and successors). A workout arrangement could include a modification or other relief.
___ I authorize my Mortgage Servicer, and Third Party and Treasury (and its agents) to share with each other
public and non-public information about my finances and my mortgage for the purpose of assisting me
in obtaining a workout arrangement, including but not limited to: (i) my mortgage payment history, terms
of my mortgage; and (ii) my social security number, credit score, income, debts and other information relat-
ed to obtaining and servicing my mortgage.
___ I understand that my Mortgage Servicer may contact me directly except in limited situations, such as when
I am represented by an attorney, and the Servicer and I must agree to any workout arrangement. I may still
contact my Mortgage Servicer at any time.
___ I understand that this Third Party Authorization Form may not be accepted by my Mortgage Servicer and my
Mortgage Servicer will notify me in writing if it is not accepted. Mortgage Loan Servicers have procedures
designed to detect fraud or improper activity and must follow privacy laws to protect borrower information.
This Authorization expires one year from the date signed unless Borrower cancels it earlier by writing to the Servicer
or by completing an Authorization of a different Third Party.
Do not sign this form until the form is fully completed. Keep a copy of this form.
Be aware of scams! Signature of borrower
Federal and State Printed name George Koustis Date 03 / 26 / 2020

government agencies
have prosecuted
hundreds of companies Phone # Email
and lawyers who illegally
charge up-front fees.
Signature of co-borrower
Report scams at George Koustis
Printed name Date
HOPE Hotline:
888-995-HOPE (4673)
Phone # Email
This form should be transmitted to the Mortgage Servicer as soon as possible and no later than 90 days
after the date signed.
2 of 2
Audit Trail
Title
Hello
File Name
RackMultipart20200122-18-irko55.pdf
Document ID
0b424f2559a5a2bb7ddeded3d21f4afd6f632a9e
Audit Trail Date Format
MM / DD / YYYY
Status Completed
This document was requested on dannlaw.cliogrow.com and signed on dannlaw.cliogrow.com
03 / 26 / 2020 Sent for signature to George Koustis (gkhcj@yahoo.com) from

17:46:01 UTC intake@dannlaw.com
IP: 73.255.231.212
03 / 26 / 2020 Viewed by George Koustis (gkhcj@yahoo.com)

17:58:27 UTC IP: 184.56.59.14
03 / 26 / 2020 Signed by George Koustis (gkhcj@yahoo.com)

18:02:14 UTC IP: 184.56.59.14
03 / 26 / 2020 The document has been completed.

18:02:14 UTC
EXHIBIT 2
EXHIBIT 2
EXHIBIT 3
EXHIBIT 3
EXHIBIT 4
EXHIBIT 4
EXHIBIT 5
EXHIBIT 5
EXHIBIT 6
EXHIBIT 6
EXHIBIT 7
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EXHIBIT 11
AO 440 (Rev. 06/12) Summons in a Civil Action
UNITED STATES DISTRICT COURT

for the
NorthernDistrict
__________ Districtofof__________
Ohio
George G. Koustis and Ronald J. Collins )

)
)
)
Plaintiff(s) )
)
v. Civil Action No.
)
Select Portfolio Servicing, Inc. )
)
)
)
Defendant(s) )
SUMMONS IN A CIVIL ACTION
To: (Defendant’s name and address) Select Portfolio Servicing, Inc.

C/o Coporate Service Company
50 West Broad Street, Suite 1330
Columbus, OH 43215
A lawsuit has been filed against you.
Within 21 days after service of this summons on you (not counting the day you received it) — or 60 days if you
are the United States or a United States agency, or an officer or employee of the United States described in Fed. R. Civ.
P. 12 (a)(2) or (3) — you must serve on the plaintiff an answer to the attached complaint or a motion under Rule 12 of
the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiff or plaintiff’s attorney,
whose name and address are:
Marc E. Dann
Dann Law
P.O. Box 6031040
Cleveland, OH 44113
(216) 373-0539
notices@dannlaw.com
If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint.
You also must file your answer or motion with the court.
SANDY OPACICH, CLERK OF COURT
Date:
Signature of Clerk or Deputy Clerk
AO 440 (Rev. 06/12) Summons in a Civil Action (Page 2)
Civil Action No.
PROOF OF SERVICE
(This section should not be filed with the court unless required by Fed. R. Civ. P. 4 (l))
This summons for (name of individual and title, if any)

was received by me on (date) .
’ I personally served the summons on the individual at (place)

on (date) ; or
’ I left the summons at the individual’s residence or usual place of abode with (name)
, a person of suitable age and discretion who resides there,
on (date) , and mailed a copy to the individual’s last known address; or
’ I served the summons on (name of individual) , who is

designated by law to accept service of process on behalf of (name of organization)
on (date) ; or
’ I returned the summons unexecuted because ; or
’ Other (specify):
.
My fees are $ for travel and $ for services, for a total of $ 0.00 .
I declare under penalty of perjury that this information is true.
Date:
Server’s signature
Printed name and title
Server’s address
Additional information regarding attempted service, etc:

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Case: 1:20-cv-02425-DAP Doc #: 1 Filed: 10/26/20 1 of 25.

UNITED STATES DISTRICT COURT

GEORGE G. KOUSTIS, individually and on Case No.

SELECT PORTFOLIO SERVICING, INC.

Servicing, Inc., and for their Class Action Complaint state:

PARTIES, JURISDICTION, AND VENUE

1. Plaintiff George G. Koustis (“Koustis”) is a natural person residing in Geauga

2. Plaintiff Ronald J. Collins (“Collins”) is a natural person residing in Palm Beach

County, Florida. Koustis and Collins shall be referred to collectively as “Plaintiffs”.

Koustis, et al. v. Select Portfolio Servicing, Inc.

3. Defendant Select Portfolio Servicing, Inc. (“Defendant” or “SPS”) is a federal

its headquarters located in Salt Lake City, Utah.

Ohio as a foreign corporation.

6. Venue lies in this District pursuant to 28 U.S.C. § 1391(b), as a substantial part of

RESPA AND REGULATION X

to serve consumer-protection purposes[,] RESPA’s provisions relating to loan servicing

8. To that end, RESPA permits a borrower (or an agent of a borrower) to submit a

loan.” 12 U.S.C. § 2605(e)(1)(B). In sending a QWR to a mortgage loan servicer (“servicer”), a

in error. 12 U.S.C. § 2605(e)(1)(B)(ii).

Koustis, et al. v. Select Portfolio Servicing, Inc.

9. RESPA provides that upon receipt of a QWR “a servicer of a federally related

mortgage loan…shall provide a written response acknowledging receipt of the correspondence

requested is taken within such period.” 12 U.S.C. § 2605(e)(1)(A).

an explanation of why the information requested is unavailable or cannot be obtained by the

Koustis, et al. v. Select Portfolio Servicing, Inc.

the interpretation of § 2605(e)(1)(A).”). In other words, a borrower’s inquiry or assertion of an

servicing of the loan.”) (emphasis in original).

U.S.C. § 2605(k) which imposed further obligations on servicers.

Koustis, et al. v. Select Portfolio Servicing, Inc.

to respond to a borrower’s requests to correct errors relating to allocation of payments, final

duties.” 12 U.S.C. § 2605(k)(1)(C).

15. Further, RESPA, as amended, requires servicers to respond to inquiries from

mortgage loans within ten (10) business days. 12 U.S.C. § 2605(k)(1)(D).

concerning mortgage markets in the United States—known as “Regulation X” and codified as 12

C.F.R. § 1024.1, et seq. Regulation X became effective on January 10, 2014.

17. Regulation X further expanded servicers’ obligations under RESPA because

found by the Bureau of Consumer Financial Protection, by regulation, to be appropriate to carry

out the consumer protection purposes of this chapter.” 12 U.S.C. § 2605(k)(1)(E).

Koustis, et al. v. Select Portfolio Servicing, Inc.

mortgage loan.” 12 C.F.R. § 1024.36(a).

number, for further assistance.”

21. Notwithstanding the foregoing, Regulation X provides for certain exceptions to

same information as a prior request, the information sought is confidential, proprietary, or

or the request is overbroad or unduly burdensome.

Koustis, et al. v. Select Portfolio Servicing, Inc.

22. If a servicer determines that it is exempted from responding to an RFI, pursuant to

of error with respect to such qualified written request.” 12 C.F.R. § 1024.35(a).

Koustis, et al. v. Select Portfolio Servicing, Inc.

25. 12 C.F.R. § 1024.35(e)(1) provides that a servicer must respond to an NOE by

information, including a phone number, for further assistance.”

26. Notwithstanding the foregoing, Regulation X provides for certain exceptions to

27. If a servicer determines that it is exempted from responding to an NOE, pursuant

Koustis, et al. v. Select Portfolio Servicing, Inc.

rule, as well as duties customarily undertaken by servicers to investors and consumers in

Fed. Reg. 10696, 10739.

29. Finally, RESPA and Regulation X impose requirements on servicers to respond to

QWRs or RFIs. 12 U.S.C. § 2605(k)(1)(D).

31. Similarly, 12 C.F.R. § 1024.35(b)(6) permits a borrower to submit an NOE