Consumer complaint received 2023-02-14
Company: Shellpoint Partners, LLC
State: SC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I have reached out to XXXX XXXXShellpoint Mortgage Servicing and has not received a response. This following statement serves as a Notice of Error. I decided to pay a lump sum principal payment to my original Mortgage company XXXX XXXX Bank in an effort to decrease my monthly payments in XX/XX/2011. The adjustment never showed on the Mortgage statement nor did my payments decreased. I tried to correct the issue with XXXX XXXX but to no avail. Shortly after, the Bank went under and my Loan was transferred to XXXX XXXX. The disclosure of my new balance with the new Mortgage company was improper and not correct. My lump sum payment to my principal was not applied, which did not reduce my mortgage payments to make my monthly payments more affordable going forward. I had provided a Notice of error and I tried numerous times and pleaded to the new Mortgage company about the inaccuracy they claimed they had no record of it and at the time I didnt not have a copy of my statements nor were they in electronic record. Eventually, Loan was transferred to XXXX XXXX. During this time, I fell behind in payments and they foreclosed my home only at the last minute granted me a loan modification. So, I was able to keep my home. My mortgage payments under new Servicer LoanCare increased and then Loan was transferred again and payments escalated to $ 2933 month my current Mortgage Holder XXXX XXXX and XXXX ShellPoint Mortgage Servicing. My original note was {$470000.00} and Sixteen years and 4 or 5 transfers later my balance is {$470000.00} with over {$85000.00} in arrear payments on the back end of my loan financed for 60 years. I have recently cleaned out my basement and fortunately and miraculously found a Bank Statement from XX/XX/2011 with a copy of the very lump sum check that was sent to XXXXXXXX XXXX before they went under making that principal payment that they did not give me credit for. I demand that my current Mortgage holder and Servicer apply and credit my lump sum payment to my principal Balance. Now that I have un-refutable evidence, I would like to be granted full credit or the Servicer will be in violation of RESPA12 CFR 1026.36 ( c ) ( 1 ). If they refuse, I have no other recourse but to seek legal. 

XXXX XXXX and Shellpoint Mortgage Servicing has been in violation of many laws and regulations as it pertains to my mortgage. 
The Transfer of my Loan over numerous times have breached my promissory note and mortgage agreement. I am going to address the current investor/holder or Inheritor of my loan and its Servicer XXXX XXXX XXXX Investor/Holder ) and ShellPoint Mortgage Servicing ( Servicer ) which has breached my mortgage agreement on many instances rendered it null and void. The Gramm- Leach-Bliley Act ( GLBA ), there are also several privacy and security benefits required by the GLBA Safeguards Rule for customers, some of which include : Private information must be secured against unauthorized access. 
Customers must be notified of private information sharing between financial institutions and third parties and have the ability to opt out of private information sharing. 
User activity must be tracked, including any attempts to access protected records. 
XXXX XXXX and its Servicer has violated 15 U.S. Code 6802 of the GLB including its safeguard and Financial Privacy rules by sharing and providing nonpublic information to Credit Bureaus and nonaffiliated third parties. The GLB Privacy Rule, requires financial institutions to provide consumers with privacy notices describing how they use and disclose consumers ' personal information which I never received during the transfers of my loan which is a violation of the Fair Credit Reporting Act and Section 502 and 503 of the GLBA. I have not received a notice of its privacy policies and practices. As a result, my private information was compromised in an XXXX data Breach where my identity was stolen ( XXXX XXXX XXXX ) which information is furnished by financial institutions and servicers to nonaffiliated third parties. I am currently, in class action lawsuit with XXXX. Due to these violations, I am strongly considering issuing a complaint to the Federal Trade Commission ( FTC ) to investigate the violations by XXXX XXXX and its Servicer Shellpoint Mortgage Servicing. This Servicer has been Incorrectly handling my partial payments. It is my understanding that Servicers are required to take one of the following specific actions when they receive a partial payment from a borrower : crediting the payment, returning it to the consumer, or holding it in an unapplied funds account. However, my servicer put these payments in my escrow accounts rather than returning the amount or crediting it to my next monthly payment. 
Finally, XXXX XXXX and Shellpoint like my previous Mortgage holder and Servicers have violated the Truth In Lending Act ( TILA ) by improper disclosure of the amount financed, finance charge, payment schedule, total of payments, annual percentage rate, and security interest disclosures. I am a victim of Predatory lending which diminished my ability to repay debt and serves to benefit the lender. My interest only rate was at one time 9.5 % which was an extremely high-interest rates. There were hidden and excessive fees, undisclosed terms, and more. 
They are required to provide consumers with 15 days advance written notice of a change to any term required to be disclosed under section 1026.6 ( a ) or where the required payment is increased which they failed. According to Transfer of Servicing 12 CFR 1024.17 ( e ) If the new servicer changes either the monthly payment amount or the accounting method used by the old servicer, then it must provide the borrower with an initial escrow account statement within 60 days of the date of transfer. When the new servicer provides an initial escrow account statement, it shall use the effective date of the transfer of servicing to establish the new escrow account computation year. In addition, if the new servicer retains the monthly payments and accounting method used by the old servicer. The New Servicer did not follow RESPA Rules and procedures to the latter.

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