Consumer complaint received 2023-12-02
Company: Shellpoint Partners, LLC
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage
Sub-issue: Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure

Complaint:
*Failure to Respond Promptly to Forbearance Requests ( XX/XX/XXXX ) : NewRez did not respond promptly to forbearance requests initiated in XX/XX/XXXX, potentially violating the requirement for servicers to acknowledge and respond to borrower requests for assistance promptly. 

*Negative Reporting During Forbearance Periods : Account reporting as 30 days past due in XX/XX/XXXX, 60 days past due in XX/XX/XXXX, 30 days past due in XX/XX/XXXX, 30 days past due in XX/XX/XXXX, 60 days past due in XX/XX/XXXX, and 90 days past due in XX/XX/XXXX may be a violation. The CFPB guidelines emphasize that during an active forbearance, servicers should not report the account as delinquent. 

*Failure to Allow Payments, Unwarranted Negative Reporting, and Lack of Communication on Payment Resumption ( XX/XX/XXXX - XX/XX/XXXX ) : NewRez did not allow payments and reported the account as 30 days past due in XX/XX/XXXX, 30 days past due inXX/XX/XXXX, 60 days past due in XX/XX/XXXX, and 90 days past due in XX/XX/XXXX. This potential violation is compounded by the absence of clear communication on how to resume payments after forbearance, leaving borrowers without proper guidance. Servicer did contact the borrower no later than 30 days before the end of the forbearance period, with clear guidance on how to resume payments, and options for additional COVID assistance. Servicer did not exercise reasonable diligence to complete the application before the end of the forbearance program period. 

*Unavailability of Online Payments and Lack of Communication on Payment Process ( Throughout the Timeline ) : NewRez knowingly and willfully did not allow online payments, as per their policy, potentially creating an undue burden on borrowers attempting to make timely payments. The absence of clear communication or guidance on resuming payments, especially after expressing interest in modification, further compounds the potential violation. Servicer did contact the borrower no later than 30 days before the end of the forbearance period, with clear guidance on how to resume payments, and options for additional COVID assistance. Servicer did not exercise reasonable diligence to complete the application before the end of the forbearance program period *Failure to Communicate Modification Process and Continued Reporting of Account as Past Due ( Throughout the Timeline ) : Even after expressing interest in modification, being in communication with the company, and providing documentation in compliance with their modification process, NewRez did not communicate a process for making payments. This lack of guidance, coupled with the refusal to allow online payments ( as per their policy ), potentially violates CFPB guidelines. Additionally, the continued reporting of the account as past due during the modification process further raises concerns about compliance. 

These potential violations collectively indicate a pattern of non-compliance with the CFPB 's COVID mortgage servicing rules, particularly in relation to clear communication, online payment accessibility, and adherence to modification processes.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation