Consumer complaint received 2023-12-14
Company: Shellpoint Partners, LLC
State: CA
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage
Sub-issue: Delays with the closing process

Complaint:
Shellpoint Mortgage Servicing on behalf of NewRez has not provided clear guidance and direction for the sale of our property via the XXXX XXXX XXXX XXXX XXXX XXXX assumption program. Due to the severe compartmentalization of their organization, receiving clear guidance and direction has been very illusive. 

Since my original CFPB complaint dated XXXX with reference # XXXX, the loan servicer has responded. In accordance with their response, we attempted to get clarification from XXXX XXXX, NewRez Compliance with little success. Specifically and quoted from the response : " After further review of the assumption received XXXX XXXX XXXX the following items are still needed : - IRS Form W-9 - Seller 's Certificate of Eligibility - XXXX - XXXX '' XXXX concerns that must be addressed and clarified : - It is believed that they have a mislabeled the required party for submission of the VA Certificate of Eligibility ( COE ) . The " Seller 's COE '' was part of the initial loan when the property was purchased and exists today as the guarantee of the loan serviced by NewRez. It is believed that the respondent meant to list " Buyer 's COE '' as a condition and required document, but continued efforts to get this corrected have not been addressed. This is resulting in serious confusion for all parties. 
- XXXX is not a document number in the VA system XXXX I assume the respondent labeled this in error and meant to list XXXX. Continued efforts to get this corrected have not been addressed. 

In accordance with the VA lenders handbook and VA lender guidelines, NewRez continues to send conflicting guidance and guidance that is in conflict with the CFPB response annotated above. Specifically, XXXX XXXX listed on her response, " If you are unable to bring the loan current with sale proceeds and would like to be review [ XXXX ] for an assumption with a loan modification, please contact our XXXX XXXX Department at ( XXXX ) XXXX for additional assistance. '' Mutliple concerns come from this statement and highlight a disjointed position by the leadership and management of Shellpoint/NewRez : - We can and will bring the loan current with sale proceeds. The current estimate of total proceeds at settlement is {$160000.00}. Covering forbearance and delinquent payments with nearly {$95000.00} remaining. The VA has accounted for this via a XX/XX/2023 circular relating to assumptions [ see attached ]. The loss mitigation single point of contact ( SPOC ), XXXX XXXX, has made it clear that we CAN NOT do a modification to an assumption. She further states that all necessary documents must be submitted for the assumption but can not ensure other departments of the servicer will allow for an assumption to continue given the status of the loan. All of these statements seem to ultimately conflict with VA guidance. 1. We can not modify and assume -- which prevents us from recovering from a COVID forbearance, and 2. We can not NOT modify because a loan in a delinquent status might and possibly likely be denied by the other departments of the lender. What options exist for me to recover from tragic life events and sell my home if the lender is unwilling to commit to the guidelines outlined by the VA and designed to protect military veterans like my wife and me? 
XXXX NewRez has stated that the loan has no investor-specific exclusions in conflict with the VA lender guidelines , the only assumption I am left to make is that the lender is choosing to not support our efforts to sell our property and pay the servicer in full for any delinquent payments. A complaint has been filed with the VA as well as a complaint with the Inspector General of the VA, in order to seek mutually beneficial outcomes for all parties. 
- The servicer does not list the necessity of the buyer to submit a Loan Application, HUD/VA addendum in their requests for document, according to the previous respondent. In consultation with the servicer, they have made it clear that the buyer has not and must submit this application. This conflicting guidance and references continue to aggregate and stall the selling of our property to willing buyers. The buyer was made aware of the necessary documents on or around XXXX 2023, their inability to perform is noted, but the lender 's inability to clearly articulate to the buyer all necessary forms continues to contribute to a total breakdown in communication. 

The position we are in with regards to the selling of our property is largely due to the poor and disjointed communication of the lender to all parties. My representatives are stating a possible path forward, the interested buyers are communication with XXXX XXXX ( loan XXXX ) and receiving contradictory information. After a confirmation call with XXXX XXXX, it is clear that the information he is providing the buyers is in direct conflict with the information provided by the initial respondent as well as my SPOC. 

The servicer appears to have made this assumption process difficult to navigate and a labyrinth of miscommunications. At this point, clear communication in necessary to ensure we can sell our home. 
1. In accordance with VA Pamphlet 26-7 Lenders Handbook, Chapter 5, Topic 7, subsection F, " The loan must be current or will be brought current at the closing of the sales transaction. '' Will Shellpoint/NewRez adhere to VA guidelines and allow this assumption to process and continue to settlement, with the delinquency being resolved and loan restored to current with sales proceeds? ( this clause is regardless of buyer 's specific performance and/or ability to qualify ). 
XXXX. If all parties submit all necessary documents, will NewRez assign an assumption manager to clear up communication shortfalls in the process -- as annotated on their assumptions information document?

3. Why did Shellpoint/NewRez fail to notify me or the buyers on the documentation shortfalls when the initial request was submitted on XXXX We have yet to receive any clear communication from the " Assumptions Department '' of NewRez on a path forward. 
XXXX. Due to the extended nature of this process, if all parties were to submit necessary documents, will NewRez expedite the process of assumption in order to prevent further deliquency? 

I have submitted congressional requests for support from XXXX XXXX ( XXXX ) and Congressman Steny XXXX XXXX XXXX ) XXXX I have also retained the support of two law firms to navigate this process, as my financial future depends on more clear and deliberate action to achieve resolution. Lastly, I have submitted a formal complaint via the VA to seek advocacy and reinforcement of the lending standards all VA lenders are required to adhere to.

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