Product: Mortgage

FORMAL COMPLAINT AGAINST SHELLPOINT MORTGAGE SERVICING To whom it may concern, I am the realtor representing the Cusumanos on a short sale of their home. I write this letter as a complaint against Shellpoint Mortgage Servicing for abusive and unethical practice in a short sale application. I have filed a complaint also with the XXXX and the XXXX Department XXXX XXXX XXXX. 

This is a very detailed and extensive abuse by Shellpoint and its employee XXXX XXXX. 


BUYER ( XXXX ) XX/XX/XXXX to XX/XX/XXXX We began this short sale review process back in XX/XX/XXXX with a different buyer than the one we are referring to today. During this time of negotiations the Shellpoint Representative on this file XXXX XXXX would deliberately stall the response time and hold on to documents such as the HUD to stall the file instead of submitting to the investor for review. I have numerous emails and taped phone conversations where his own colleagues were baffled as to his actions on the file. 

XXXX instance is where he asked for a counter offer and we gave him the exact figure that he said the investor countered us on. After submitting the HUD and contract addendum to XXXX XXXX for approval he stalled the file and would tell me that the investor is not responding for weeks. Each time the HUD and contract addendum would expire and we would start all over again with the same scenario. I was baffled at this representative 's actions as they were not the norm in my many interactions with Shellpoint on other deals. 

After a few back and forth negotiations on this file we all agreed on a certain net to the investor and we submitted all documents to mee this net. These documents were submitted on XX/XX/XXXX for investor approval. On XX/XX/XXXX XXXX XXXX of Shellpoint told me that he has an answer on the short sale request and will let me know in XXXX days. We are now waiting over 7 days and XXXX still tells me that he will tell me the answer soon. He was making this out to be as if we had to get the XXXX XXXX ready for this big response from the investor. He knew that the investor had approved the file but he deliberately did not want to tell so because he wanted to stall the file to allow it to expire. In the meantime I spoke to another representative at Shellpoint on this file and they were baffled as to why XXXX XXXX was keeping me in suspense and waiting. They told me the file is short sale approved and they have no clue why XXXX is not issuing the short sale approval letter. On XXXX XXXX I had a very stern call with XXXX where I questioned him as to why he was delaying with this file and why his colleagues were giving me current updates conflicting with what he was saying. It was at this point that he mentioned to me that we had done a deal 4 years ago and he knows my name. He was polite but was more or less letting me know to go look up his name and the file to see what occurred in that file. 

I then went to my email history and found XXXX 's name from 4 years ago and saw that I had to file a CFPB complaint # XXXX on him for violating dual track foreclosure laws by scheduling an auction while at the same time negotiating a final HUd to XXXX on an elderly female home in Port XXXX XXXX I remember this file distinctly as it was the last home I closed prior to covid shut down. 

The CFPb investigated the complaint and advised that the file was no longer with Shellpoint and that the servicer had changed. Shellpoint whose main function is purchasing loans and acquiring servicing rights rarely do they sell off loans they acquire loans.. I The response from the CFPB was that the loan number was no longer affiliated with Shellpoint and a new servicer took over. I did not bother to pursue this any further as it was in the midst of XXXX and the new servier did allow us to close. Shellpoint is NOT known as a servicer who sells off or transfers loans ; they are buyers of loans. So this sell off was done to avoid CFPB further investigation. 

Now back to Buyer number 1 on this complaint. 

Eventually Shellpoint issued the XXXX XXXX short sale approval letter on XX/XX/XXXX with a $ XXXX relocation incentive to the sellers. 

The file also had a XXXX XXXX with Shellpoint and in negotiating that file the XXXX XXXX representative advised that they would want the $ XXXX relocation that the XXXX XXXX issued removed and credited to the XXXX XXXX investor. I went back to XXXX XXXX and told him that we have conflicting approval on both loans by the same servier Shellpoint. He advised that he could not issue a new letter and that was final. This became an internal issue with Shellpoint as we had approvals on both loans but the letters were conflicting. Shellpoint could not come to any type of internal agreement on resolving the XXXX short sale conflicting letters. Eventually we were told to remove the $ XXXX relocation to the sellers and credit it to the XXXX XXXX amount. While doing this we had to wait for approval again and this again took weeks to get a simple issue resolved. The XXXX XXXX was still netting their required amount. Eventually all the HUD and contract addendums expired. The previous buyer in this deal went so far as to agree to pick up carrying cost on the loan if they could just issue XXXX new letters asap. In this time the sellers moved out of the home as they thought were closing on XX/XX/XXXX and were not aware of the nonsense that we were having with Shellpoint. The home eventually had frozen pipes and water damage even though the heat was on and the water pipe was running. 

Our HUD figures for the XX/XX/XXXX closing had expired and we still had no new approval letters from either shellpoint loans. They were still trying to resolve internal issues with conflicting letters on a closing from the same servicer. We were then told by XXXX XXXX to submit a new HUD and remove the $ XXXX relocation to the seller and put it towards the XXXX XXXX pay off. Although the HUD figures and net to investor expired on XX/XX/XXXX the buyer was willing to pick up the tax and water adjustments so that the investors net remain the same and to make the deal work with a XX/XX/XXXX closing. 
ON XX/XX/XXXX XXXX ISSUED A NEW SHOTGUN TYPE APPROVAL LETTER FOR THE FIRST BUYER ON XX/XX/XXXX WITH A DEADLINE TO CLOSE ON XX/XX/XXXX. XXXX. 2 DAYS TO CLOSE???? 
Keep in mind that the short sales require that we submit a closing HUD XXXX hours prior to closing to get stamped. With my calculations on the above short sale letter mentioned XX/XX/XXXX to XX/XX/XXXX is only XXXX hours so how can we submit the HUD XXXX hours prior to closing??????? 

So this deal above died and XXXX advised me in an email to reduce the home to {$330.00} XXXX to get a quick sale with the damage to the home. 

BUYER ( XXXX ) CURRENT BUYER XX/XX/XXXX to Current XXXX XXXX We did get a buyer that was willing to take the home in as is condition and XXXX was made aware of this. 

Shellpoint also scheduled a foreclosure auction in between these XXXX negotiations for XX/XX/XXXX all the while they are negotiating with us on a short sale. XXXX kept telling me that the auction was on hold but that is not the case. That was just an internal note he personally made on the file. The referee and the foreclosure attorney LOGS are not aware that we are in active mediation negotiation and the auction should be postponed or cancelled while in good faith negotiations to work out a settlement be it modification or short sale. Shellpoint has not disclosed this to their foreclosure attorney LOGS. XXXX XXXX 's own colleagues at Shellpoint told me that the foreclosure auction was still on. There should have been some type of motion filed with the court as is the norm to advise the court that we are in active mediation on the file and the auction is postponed. This was not done to this day because Shellpoint has not advised their foreclosure attorney LOGS that we are in a short sale negotiations. 

The CFPB rules amended Regulation X which implemented the Real Estate Settlement Procedures Act ( " RESPA '' ). The CFPB rules prevent " dual tracking '' where a servicer is simultaneously evaluating a consumer for loan modifications or other alternatives at the same time that it prepares to foreclose on the subject property. 

We now started this new deal/offer on XX/XX/XXXX This new buyer even went up an extra $ XXXX to $ XXXX to make the deal work. All documents were again submitted to XXXX XXXX and he came back to tell us that the investor wanted the old net amount from the previous deal. I explained to him that it was not possible, being that the home now has extensive water and freeze damage in excess of $ XXXX. He told me he would go and let the investor know about the freeze damage and get back to me. Eventually he came back to me and said that the investor still wanted the net to be the same as the old XXXX. We eventually took out around $ XXXX from the $ XXXX that the XXXX XXXX was getting to make the deal work and submitted the HUD to XXXX XXXX for review. My assumption is that XXXX and Shellpoint never disclosed to their investor that the home had freeze damage and that it was the fault of SHELLPOINT and the XXXX  employee XXXX XXXX who was using this file to retaliate against me for reporting him to the CFPB 4 years ago. XXXX XXXX and Shellpoint also refused to pay the open school tax of around $ XXXX which is not normal in any short sale. XXXX XXXX was doing everything in his power to kill the deal as retaliation against me. 

I submitted all documents to XXXX XXXX on XX/XX/XXXX with all supporting documents for review. So now we began a new review process with XXXX on the first XXXX. XXXX told me that he would submit ASAP for a quick review. On XX/XX/XXXX I checked in on the file with a phone call and was told by the Shellpoint representative that the file was not submitted to the investor until XX/XX/XXXX. Over XXXX weeks had passed where Shellpoint had the complete package but XXXX deliberately stalled in submitting the file so as to not meet the closing deadline this time of XXXX XXXX. As you can see this is the pattern with this Shellpoint rogue employee who thinks that retaliating against me is more important than servicing his investor and the homeowner. 

So as of today we have an approval letter that I had to call and ask XXXX XXXX on XXXX XXXX and the letter shows a generated date of XXXX XXXX but was not sent over to me until I emailed XXXX XXXX XX/XX/XXXX to ask for the letter. I can only XXXX how much longer he would have sat on this letter If I did not reach out to him to get the letter. 
Again it will be impossible to close within 2 days as we need to submit a final HUD to Shellpoint XXXX hours prior to closing for a stamped approval for title. Also getting water readings and all parties together in such a short time is near impossible as New York is an Attorney state where all parties need an attorney to represent them to close. 

I have made numerous requests to have XXXX XXXX removed from the file with a few supervisors but yet he remains on this file and today again is trying to sabotage the deal by issuing an approval letter 2 days before we are to close. Same thing he did on XX/XX/XXXX issuing a letter on that date with an expiration to close on XXXX XXXX The goal of shellpoint is to issue unrealistic short sale letters so that they can continue with the scheduled auction on XX/XX/XXXX. We keep negotiating in good faith yet Shellpoint keeps issuing late approval letters deliberately to sabotage the deal. 

This company has rebranded itself from many other names such as XXXX XXXX in XXXX to try to cover up and hide the multitude of violations against them from consumers. Employing individuals such as XXXX XXXX after my last complaint and selling off the loan to avoid answering to the CFPB is XXXX of the reasons they are still in lawsuits to this day. I can only XXXX how many homeowners they have duped and lied to and foreclosure on their home with these abusive deceptive practices. 

Your Honor unfortunately due to the dismantling of the CFPB consumers have no other recourse to report abusive behaviors by these financial institutions other than to bring them to your attention and the XXXX XXXX XXXX, in hopes of curbing these bad behaviors. 

A solution to this matter is to have XXXX XXXX removed from the file and have the file reviewed in a timely manner with an approval to close prior to the auction date of XXXX XXXX by both XXXX holders in Shellpoint. This is a cash deal and all we need is maybe 5 days notice to close, not 2 days as they are doing now. 

Hopefully the XXXX group can reach out to me and to their client and give them proper advice moving forward. 
Cc : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX