Consumer complaint received 2018-09-02
Company: Shellpoint Partners, LLC
State: MD
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
To : Consumer Financial Protection Bureau We are contacting your Agency to report our experience when our mortgage servicing from XXXX XXXX XXXX ( XXXX ), based in XXXX, Texas, transferred to XXXX XXXX XXXX  ( XXXX ), based in XXXX, South Carolina. We have been greatly inconvenienced by this transfer, which was handled poorly by both companies, and wish to complain about their failure to properly service our mortgage resulting in the cancellation of my homeowner 's insurance policy with XXXX and XXXX 's subsequent correspondence demanding payment when payments had in fact been made. The sequence of events are as follows, with attachments to support : 1. In mid-XX/XX/XXXX we received notices in the regular mail from both XXXX and XXXX that our mortgage servicing would be transferred from XXXX to XXXX effective XX/XX/XXXX. Other than instructions on where to mail payments, the notices indicated that no other action on our part would be required. 
2. On XX/XX/XXXX we mailed my last payment to XXXX for the XX/XX/XXXX payment, consistent with our past payments. 
3. On or about XX/XX/XXXX, concerned that our check written to XXXX had not cleared our account, we called XXXX for further information. We were assured by one of their representatives that nothing was amiss, and a grace period was in place to ensure no payments would be listed as past due during the transfer to XXXX. 
4. On approximately XX/XX/XXXX, we received a statement from XXXX dated XX/XX/XXXX for the XX/XX/XXXX payment, which indicated the XX/XX/XXXX payment had been received. On XX/XX/XXXX we mailed our first payment to XXXX, this check cleared our account on XX/XX/XXXX. ( The check we sent to XXXX on XX/XX/XXXX still had not cleared. ) 5. On XX/XX/XXXX, in the regular mail, we received an Offer to Reinstate from XXXX XXXX dated XX/XX/XXXX, notifying us that they had not received payment of {$450.00} for our homeowners policy and coverage had lapsed. This payment was to be paid from escrow funds which is included as part of our mortgage payment, but both XXXX and XXXX  had failed to do so. On XX/XX/XXXX we contacted both XXXX and XXXX   for instructions, and made the arrangements to have XXXX fax to XXXX a statement showing the amount due. A subsequent statement from XXXX dated XX/XX/XXXX shows that XXXX   made a payment on XX/XX/XXXX,  but not for the correct amount, paying {$420.00} instead of the required {$450.00}. As of XX/XX/XXXX XXXX had not received the payment and subsequently canceled our policy. ( I have a separate grievance with XXXX  for their failure to promptly and professionally notify us of this issue ). As a result, we opened a new homeowner 's policy with XXXX. 
6. On XX/XX/XXXX we logged onto our online account for XXXX  with the intent of making a payment for our XX/XX/XXXX payment although we prefer to pay via check, we had not yet received a statement in the mail from XXXX and wished to ensure payment was made. At this time we observed new postings to our account dated XX/XX/XXXX indicating we were past due on the XX/XX/XXXX payment ( this check cleared on XX/XX/XXXX ), and we promptly contacted XXXX  on the phone for an explanation. The representative on the phone was unable to understand the most recent transactions and told me I would be contacted by one of her supervisors within 24 hours. We have never been contacted. 
7. On XX/XX/XXXX, while still awaiting communication from XXXX, we received in the mail our statement from XXXX  dated XX/XX/XXXX. This statement indicated the account in current status, and I mailed our XX/XX/XXXX payment on XX/XX/XXXX via Priority Mail. 
8. On XX/XX/XXXX, we received two further items in the mail from XXXX. A letter dated XX/XX/XXXX has our check of XX/XX/XXXX to XXXX group enclosed and returned, with apologies for the inconvenience. At this point it becomes clear why our online account is showing a past due amount. A second letter, dated XX/XX/XXXX, informs us our account is past due and that XXXX  may report nonpayment to the four major credit reporting agencies if payment is not received by XX/XX/XXXX. 

The lack of organization and competance within XXXX and XXXX has caused us a great deal of inconvenience, not to mention stress, as we have been forced to prove that we have made payments on our mortgage in a timely and responsible manner. In addition, XXXX  's preferred method of correspondence and communication the regular US Mail has proven wholly inadequate to resolve urgent and sensitive issues with our account. Although XXXX  has both an email address and phone which they could have used to leave a message with us, there is no indication they did so, and chose instead to send threatening collection letters in the slowest manner possible. It is disturbing to us that a company which is responsible for such important matters such as FHA Mortages and Homeowner 's Insurance can operate in such a dated and unprofessional manner.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation