Consumer complaint received 2021-09-28
Company: Shellpoint Partners, LLC
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My mortgage loan was transferred from XXXX mortgage servicing to Shellpoint Mortgage Servicing around XX/XX/2020. Prior to my loan being with XXXX, my loan was with XXXX XXXX XXXX. 

When Shellpoint Mortgage servicing took over my loan they changed the way my overage payments were being applied. When I say overage payments, I am referring to any amount I pay over my monthly mortgage payment. Previously, all of my overage payments would go into a suspense account where they would be held until they equaled one mortgage payment.

Unknown to me, Shellpoint was routing all of my overage payments to the fees on the loan. The fees on the loan are usually held at the back of the loan and overage payments typically do not go to them. They are resolved when the loan is paid for. Also, fees typically go to the profit line of the mortgage servicer. So Shellpoint has a financial incentive to route all of my extra payments to the back of the loan as it pads their profit.

I requested that Shellpoint apply my overage payments like XXXX and XXXX had applied my payments which was to suspense. I even called both companies and they could not understand why Shellpoint was applying my extra payments immediately to fees. Both XXXX and XXXX confirmed to me that they did not apply my payments like that. 

Now this is where the lying and devious behavior starts from Shellpoint. 
I filed several complaints through the TN Attorney Generals office. The complaints went to Compliance at Shellpoint.

It has been very difficult to get a firm answer from Shellpoint on the payment issue. Their compliance agent, Like an attorney, has equivocated and has repeatedly refused to directly answer the question.

This is very difficult to explain but I will try.

Shellpoint insisted that the payments from XXXX mortgage and XXXX were applied to fees. 
Shellpoint was devious and misleading in their response. The overage payments held in suspense WERE applied to fees by the previous mortgage servicers WHEN THE ACCOUNT WAS TRANSFERRED. 

During the years my account was with ocwen all of my overage payments went to suspense. 

Same for XXXX servicing. 

So the Shellpoint Compliance agent intentionally conflated the issue.

I was not referring to any payments in suspense when the loans were transferred or modified. Shellpoint knew this.

I requested that Shellpoint apply my extra payments to suspense. Or to principle. I dont care which.

The Shellpoint escalation agent on the phone stated to me that they would put a 'critical warning note'on the file and he said even if the payment went to fees all I had to do was call in and notify Shellpoint of this and they would reverse the payment back to principle or suspense.

When the Shellpoint agent responded to my request where I asked that they put this in writing, as the state of Tennessee only honors what's in writing, the agent refused and the agent said two different things at two different times.

The agent stated i could request that the fees be reversed but the agent never gave any confirmation that Shellpoint would honor my request. It's a very simple thing. Say that you will honor my request. The agent refused.

The agent then stated that they would apply the payment in line with my original loan documentation and would only apply extra payments to the principle or suspense if I sent in the payment coupon. 

I have for years now made my payments via moneygram wire transfer or XXXX wire transfer. Shellpoint offers electronic payments as a payment option. So I cant send a payment coupon when making my payments via wire transfer. Shellpoint knows this too.

Shellpoint is intentionally making it difficult for my extra payments to apply to principle or suspense by demanding payment coupons when they are well aware homeowners can not send a payment coupon when they make their payments electronically.

So I'm back at square one. I want Shellpoint to say they will honor the critical warning note on the account, which their agents have stated twice over the phone to me, both their compliance agent and the escalation agent, that they would honor - however, when it comes to written correspondence shellpoint equivocates and will not confirm my interpretation of the critical warning note iscorrect. They wont even confirm the interpretation of this note and what it means as explained to me by their len escalation agent is correct as well. This leaves me, the homeowner, not knowing what to believe.

Shellpoint uses wording like 'the homeowner CAN REQUEST for the payments to be reversed but it never states that they will COMPLY.

Shellpoint then reiterates they will apply the payments per the original loan documents but Shellpoint fails to understand that if my payments were being applied differently all those years that constitutes a CHANGE TO MY LOAN TERMS and they are not allowed to suddenly REVERSE THAT CHANGE by going back to original loan documents. 

Shellpoint then decides to simply be devious and claim ignorance of how my payments were previously applied by the previous servicers by falsely saying " oh the payments went to fees '' and not clarifying this was only when the loan was either modified or transferred and not when the loan was being regularly serviced.

I can not use a payment coupon as I make my payments electronically through moneygram and now moneygram does not even use a form. My information is in their system and the agent takes the payment and pulls up the account and enters nothing in there.

So this is why Shellpoint agreeing to honor the critical warning note on the account is vital. Why tell homeowners that note will be put on the account as directive to how to apply payments as their agents have told me then walk it back in written correspondence and say 'oh it's just informational only ' which is downplaying the importance of that note. 

It's wrong for Shellpoint to act so deceptive with me and to tell me one thing over the phone and put a different thing in writing. Shellpoint is not dealing with me in good faith. Shellpoint is actually a bad actor and is putting their profit margin before doing what's right for the homeowner. I consider what Shellpoint is doing to be abuse. because they are constantly misleading me and telling me different things. All I want is for them to agree that they will apply my overage payments to principle or suspense and by shellpoiny steadfastly refusing to admit to this in writing ( although they readily admit to it on the phone ) it leaves me frustrated and confused and feeling taken advantage of. 

I will post this complaint online and I will now post all of their responses online as well. the way they are treating me needs to stop.

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