Consumer complaint received 2024-02-01
Company: Shellpoint Partners, LLC
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process
Sub-issue: Escrow, taxes, or insurance

Complaint:
Re : Loan Number XXXX Property Address : XXXX XXXX XXXX XXXX XXXXXXXX, XXXX VA XXXX I would like to report the unreasonable and unprofessional practice of NewRez, which placed a lender placed insurance coverage on my property above, without my consent and despite the fact that I have provided them evidence that my condo office purchased sufficient hazard insurance for my property. 

NewRez acquired my mortgage loan from XXXX XXXX XXXX earlier in XXXX and since then, I have received several letters from NewRez requesting insurance information and threatening to purchase hazard insurance on my behalf. I never had these unpleasant encounters while my loan was under XXXX  before the acquisition. 


In or about late XX/XX/XXXX, I received a letter from NewRez, dated XX/XX/XXXX ( copy attached ), requesting a copy of my condo 's hazard insurance relating to the above property. I immediately contacted my condo office and they provided a copy of the hazard insurance to NewRez by email. I had also uploaded a copy of the hazard insurance to the website provided in NewRez 's letter, and called them to ensure that they received it. 

I informed NewRez in my letter of XX/XX/XXXX ( copy attached ) that if they have further questions or need further information, they should contact the condo office. I provided the contact information of my condo office in my letter. 

I later received a letter from NewRez dated XX/XX/XXXX stating that the lender-purchased insurance they purchased for my property was cancelled effective XX/XX/XXXX because 'adequate insurance coverage was provided ' ( copy attached ). 
To my surprise, on or about XX/XX/XXXX, I then received another letter from NewRez dated XX/XX/XXXX, stating that they were unable to verify coverage from XX/XX/XXXX XXXX XXXX XXXX, and that they will charge me for insurance they plan to purchase for that period unless they can verify that I have insurance coverage. 

It is unclear why Newrez needed to purchase insurance for my property for XXXX, without first asking me or my condo office for a copy of the insurance. It is also questionable as to why that one month in the last year would cause a concern. 

Nevertheless, I immediately talked to my condo office and provided copies of insurance purchased by my condo office for XXXX and XXXX to NewRez immediately, by mail and by fax on XX/XX/XXXX. Please see attached copies of my letter dated XX/XX/XXXX and screenshot evidencing that my fax successfully reached NewRez 's fax number provided in their letter ( XXXX XXXX XXXX ). These cover the period XXXX. 

However, on or about XX/XX/XXXX, I received another letter from Newrez, dated XX/XX/XXXX, stating that they have not received proof of hazard coverage on my property and it has become necessary to place lender-placed insurance coverage on my property. They attached copy of the lender placed insurance with a premium is XXXX XXXX  XXXX. 

It appears that NewRez did not check their records and went ahead to purchase the above lender placed insurance. I tried to call the insurance department of NewRez multiple times to follow up on the matter, yet no one answered my call. I left a message asking them to call me back, but I have received no calls from them yet.

I therefore have no alternatives but to contact the Consumer Financial Protection Bureau and report this most unpleasant incident. I wish that the CFPB can look into this matter and protect innocent consumers like me, who did nothing wrong and used their best efforts to entertain NewRez 's requests.

It is quite likely that Newrez did not communicate with XXXX  and there were a lot of issues during the transition. It is most unfair that Newrez is threatening to charge the consumers, who did nothing wrong, for documents that XXXX  did not provide to Newrez, or that Newrez failed to obtain from XXXX  or the condo office.

I also notice that there are usually long gaps between the dates of NewRez 's letters and the time I received them. They never provide their email address in their letters. In replying to their letters I had incurred unnecessary expenses, in order to pay for the fax and stamps. They should provide their email address in writing, rather than just their fax number and phone number, which seem outdated and unhelpful. It is extremely hard to reach their assistants by phone.

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