Consumer complaint received 2021-03-29
Company: Shellpoint Partners, LLC
State: WA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
In late XXXX, I was approved by XXXX for a 30-year 6-5/8 % fixed interest rate mortgage loan to purchase my current residence. I signed up for automated monthly ACH payments XXXX principal plus interest ), which have been routinely occurring about the XXXX  day of each month. Since XX/XX/XXXX, I have made all {$670.00} monthly payments on time by ACH payment. To date, this loan has been serviced by four different mortgage servicing companies. In XX/XX/XXXX, while Ditech was my mortgage servicer, I began making additional payments of {$670.00} to pay down the outstanding principal. Since XX/XX/XXXX, I have been making two principal only payments of {$670.00}, each month, in addition to my regular principal plus interest ACH payment at the beginning of each month. I have been making these principal only payments, using my banks online bill payer service, on or about the XXXX and XXXX of each month. During the time that Ditech was my mortgage servicer, they reduced my outstanding principal balance by the full amount of each of my {$670.00} principal only payments. 

In XX/XX/XXXX, New Rez replaced Ditech as my mortgage servicing company. Beginning that month, Ditech began applying interest charges on some of my principal only payments. Specifically, they imposed interest charges on principal only payments that I made on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. After noting these charges on my account history, I contacted NewRez to get this resolved. I had conversations with NewRez customer service representatives on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. The representatives told me that NewRez had deducted this interest because they had interpreted these principal only payments as being future monthly payments. I told them that I understood that the terms of my loan allowed them to impose interest only at the time of my regular monthly principal plus interest payment based upon the outstanding principal amount at the end of the prior month. Each of these representatives concurred with me and assured me that they would put in a request to correct the entries in my account history and that adjustments would be made crediting me for the errant interest charges and reducing my outstanding principal balance as of the dates the errant interest charges were imposed. 

In XX/XX/XXXX, I noticed that NewRez had made a series of adjustments to my account on XX/XX/XXXX. I observed that none of these adjustments credited me the errant interest amounts that had been subtracted out of my principal only payments noted above. 

Having been unable to resolve this matter by telephone, I sent NewRez, via certified mail, the attached letter, dated XX/XX/XXXX, communicating my dissatisfaction and requesting timely resolution of my issues. Along with that letter, I enclosed a spreadsheet, attached, in which I listed all payments I had made since NewRez took over servicing of my loan and showing the correct interest charges that should have been imposed upon my account only at the time of my regular monthly principal plus interest ACH payment. My spreadsheet showed that my outstanding principal balance as of XXXX, XXXX, XXXX, should have been {$19000.00}, which was {$600.00} less than what NewRez stated it as being, {$20000.00}, in a Loan History Statement sent to me dated XX/XX/XXXX. This Loan History Statement is attached. 

In response to my XX/XX/XXXX, letter, NewRez mailed me a letter, dated XX/XX/XXXX. This letter did not address the errant interest charges applied on dates other than when my regular monthly principal plus interest payment was due. Furthermore, the first paragraph of this letter states that my outstanding principal balance, as of XX/XX/XXXX, was {$17000.00}. Included with this letter was a Loan History Statement, dated XX/XX/XXXX, which shows my outstanding principal balance as being {$18000.00}. Based upon the discrepancy between these two numbers, it appears to me that NewRez didnt even know my correct outstanding balance, as of XX/XX/XXXX. I am attaching a copy of the XX/XX/XXXX, letter along with the Loan History Statement that came with this letter. Incidentally, my spreadsheet calculations, which I am also attaching, show that my outstanding balance, as of XX/XX/XXXX, after having made a principal only payment of {$670.00} three days earlier, should have been {$17000.00}. This is several hundred dollars less than either of the two amounts stated in the correspondence sent to me dated XX/XX/XXXX. 

On XX/XX/XXXX, I once again contacted NewRez by telephone to attempt to get a rational explanation for the adjustments they had made to my account that resulted in a different outstanding loan balance from what I had calculated. Once again, the customer service representative was unable to provide me an adequate explanation. The representative again told me that the mid-month interest charges were imposed on my principal only payments because they were interpreted to be future regularly monthly loan payments. I once again explained that the terms of my loan allow them to impose interest only at the time of my regular monthly payment ( ACH transaction about the XXXX of each month ) based upon the outstanding principal amount at the end of the prior month. I further asked how NewRez could even calculate the interest that would be due on a future regular monthly payment without knowing what my outstanding balance would be at the end of the preceding month given any intervening principal only payments that I make. 

My current loan history, available to me on my online NewRez account shows additional interest charges having been applied to the mid-month principal only payments that I made on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. ( It does appear that NewRez has credited back the interest they applied to my XX/XX/XXXX payment and applied it toward paying down my principal. ) These interest charges were applied to my account even though I specifically stated in my XX/XX/XXXX, letter to NewRez In the future, it is my expectation that all future payments, separate from my {$670.00} regular monthly ACH payment made about the XXXX of each month, be credited as principal-only payments and that my outstanding principal balance be reduced accordingly as of the date that those payments are received. 

As of XX/XX/XXXX, NewRez shows my outstanding principal balance as being {$11000.00}. My calculations show that it should be {$10000.00}, a difference of {$390.00}. I have attached a spreadsheet showing how I have arrived at {$10000.00} and a copy of my NewRez Online Payment History as of XX/XX/XXXX, showing my outstanding balance as being {$11000.00}.

Company public response: Company believes the complaint provided an opportunity to answer consumer's questions
Company response to consumer: Closed with explanation