Consumer complaint received 2022-02-27
Company: Shellpoint Partners, LLC
State: TN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Shellpoint Mortgage Servicing is continuing to mishandle loan # XXXX despite multiple requests for them to accurately report the loan and correct the loan status. Shellpoint Mortgage Servicing has been provided documentation and information that verifies their inaccurate servicing and reporting of Loan # XXXX. We have not been able to speak with anyone at Shellpoint Mortgage Servicing regarding this matter. Although Shellpoint Mortgage Servicing has reported and transferred the loan using erroneous and inaccurate information, they claim they no longer have anything to do with the account. Although a phone number was provided for a XXXX XXXX, phone calls have gone unanswered and messages have not been returned. Instead of contacting us to properly handle the situation, Shellpoint Mortgage Servicing continues to respond to complaints with inaccurate information, and then they close the complaint. Shellpoint Mortgage Servicing actions are clear indicators that they have no interest in making any effort to correct their errors. 


# 1. XXXX XXXX claimed we requested that the loan be reported as current. We are not and have not, at any time, requested anything other than the account be reported accurately. We are stating that the loan can not be reported delinquent for the periods it was in forbearance and modification, XX/XX/XXXX through XX/XX/XXXX. We are also stating that the loan could not be in default status on XX/XX/XXXX because the payments due at that time were for periods XX/XX/XXXX through XX/XX/XXXX ( which was the forbearance period ), and the loan was in modification status beginning XX/XX/XXXX. 


# 2. XXXX XXXX, on behalf of Shellpoint Mortgage Servicing, acknowledges that the loan was in COVID forbearance status from XX/XX/XXXX through XX/XX/XXXX and in modification status from XX/XX/XXXX through XX/XX/XXXX. XXXX XXXX acknowledges, on behalf of Shellpoint Mortgage Servicing that Shellpoint Mortgage Servicing is reporting the loan as delinquent for payments through XX/XX/XXXX through XX/XX/XXXX. XXXX XXXX, on behalf of Shellpoint Mortgage Servicing, also acknowledged placing the account in default status, while it was in modification status. The paragraph below is copied verbatim from XXXX XXXX 's letter dated XX/XX/XXXX. 

" Following the successful completion of the trial period, the loan was contractually past due for the XX/XX/XXXX through XX/XX/XXXX installments. Since the loans pre-modified loan terms remain in effect during the trial period and the loan was contractually past due, the delinquency notices referenced in your complaint were sent to you. Shellpoint continued to report the delinquency status of your loan to the CRAs as well as your entry into a trial period plan in accordance with the requirements of the Fair Credit Reporting Act and the XXXX XXXX XXXX XXXX requirements. That information was also provided in the Frequently Asked Questions section of the modification offer letter. '' # 3. Shellpoint Mortgage Servicing was made aware that the CARES Act SUPERSEDED the Fair Credit Reporting Act for reporting of COVID forbearance loans. Per the CARES Act, monthly payments covering the forbearance period can not be reported as delinquent. Therefore, payments that would have been due XX/XX/XXXX through XX/XX/XXXX are not allowed to be reported as delinquent. Also, if Shellpoint Mortgage Servicing chooses to report payments for the modification period, XX/XX/XXXX through XX/XX/XXXX as delinquent, we would expect that this is standard practice and Shellpoint Mortgage Servicing reports all loans covering a modification period the same for all customers. 

# 4. The XX/XX/XXXX statement shows the account was paid through XX/XX/XXXX, with the next payment due XXXX, XXXX, which was the start of the COVID forbearance period. On XX/XX/XXXX Shellpoint Mortgage Servicing placed the loan in a default status for months covering the COVID forbearance and modification periods, XX/XX/XXXX through XX/XX/XXXX. Not only is it a violation of the CARES Act to place a loan in default status for payments during the COVID forbearance period, a loan that is in modification, and adhering to the terms of that modification, can not go into default status anyway. 


# 5. During the forbearance period, when we were able to and attempted to make a payment, we were told payments could not be made because the account was in forbearance. 


# 6. The attached final account statement received from Shellpoint Mortgage Servicing ( dated XX/XX/XXXX ) reflects the forbearance and modification status of the loan, and not at all as XXXX XXXX has portrayed. It clearly states that the next payment due is for XX/XX/XXXX. It clearly states that the account is in modification. It clearly shows there were NO late fees because there were no payments due other than those for the COVID forbearance and modification periods. How could the loan payments be late for periods covering COVID forbearance? That is a violation of the CARES Act. How could the loan go into default status during modification? 


# 7. After several days of numerous calls to XXXX XXXX with no answer and voicemails left with no response, XXXX XXXX claims one phone call attempt to us on XX/XX/XXXX was unsuccessful. We are not aware of a phone call. If one was attempted, there was no voicemail left, which I am certain would have been done, as I am sure XXXX XXXX would not expect that customers are available to answer phone calls at all times, and therefore would surely have left a voicemail requesting a return call, and providing best times for that call. 


Shellpoint Mortgage Servicing has acknowledged awareness of how they have serviced and reported Loan # XXXX. Shellpoint Mortgage Servicing has only been requested to accurately report and reflect the correct status of Loan # XXXX. Shellpoint Mortgage Servicing has been made aware of errors in their servicing and reporting of Loan # XXXX. Although Shellpoint Mortgage Servicing has been made aware of their errors in the servicing and reporting of Loan # XXXX multiple times, Shellpoint Mortgage Servicing has refused to correct those errors. Shellpoint Mortgage Servicing is being made aware that their refusal to correct errors and accurately service and report Loan # XXXX is causing harm. Shellpoint Mortgage Servicing is indicating by their refusal to correct errors in their servicing and reporting of Loan # XXXX after being made aware of those errors, they are willfully and knowingly causing harm. Shellpoint Mortgage Servicing transferred the loan, with erroneous and inaccurate information, to another servicer, which is compounding the harm caused. Shellpoint Mortgage Servicing is being made aware that knowingly causing harm by refusing to correct the servicing and reporting of Loan # XXXX will result in legal action against Shellpoint Mortgage Servicing. Shellpoint Mortgage Servicing is being made aware that legal action will include requests for all remedies available under the law.

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