Consumer complaint received 2021-01-28
Company: Shellpoint Partners, LLC
State: TN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/XXXX We are writing in hope that you can provide us some assistance or put us in contact with someone who can help us to resolve this matter. We are not looking for financial support but instead seeking direction on how to resolve the misappropriation of monies paid and late fees charged by our lender ( Shellpoint Mortgage Servicing/NewRez, INC. ). Shellpoint Mortgage Servicing is using predatory tactics and harassment while benefitting financially through the CARES Act all the while assessing customers late charges and incidental charges. We are also filing a complaint with the Consumer Financial Protection Bureau but we are not sure if that is the correct process given the circumstances and are seeking your guidance, as we truly do not know where else to turn. 
In XXXX of XXXX, Shellpoint Mortgage offered a forbearance program under the CARES Act to delay payments to those affected by the Pandemic. The forbearance period was initially for three months and as explained by the lender could then be either extended, deferred, or process a loan modification. We were also told that we would not accrue late charges or negative credit reporting while on the program. Due to the loss of income earlier in XXXX, it was necessary for us to enter the forbearance program for XXXX, XXXX & XXXX. Prior to the conclusion of the three month forbearance term, I contacted my lender to inquire about having the three months deferred to the end of the loan. ShellPoint had assigned a representative, Mr. XXXX to assist us with the process. Although the website indicated that no paperwork was necessary to be considered for deferment, Mr. XXXX asked that we provide the full packet of documents in the event the committee denied our request for deferment and we needed to proceed to a loan modification. Also, in order to start the deferment processes, we had to remove ourselves from the forbearance program. 
When we entered the forbearance period, Mr. XXXX asked if we could make partial payments and informed me that a partial payment would reduce what is owed at the end of the period so we agreed to pay what we could during the 3 month period which totaled {$2700.00}. 
Starting in XXXX, we removed ourselves from the Forbearance program and began making our full mortgage payment at the same time we asked for a deferment of the three months owed and were told the review process would take 5-7 business days. In XXXX we were asked to provide the full packet of documentation including check stubs, tax statements, hardship letter, bank statements, etc. which we provided as we continued to make our full monthly mortgage payment. This continued through XXXX, XXXX and early XXXX with Shellpoint continually asking for resubmittal of documents, additional documents or clarification. Please note, we quickly and completely complied with each request while following up with our representative at least weekly. Each month we continued to make our normal full monthly payment which includes our escrow. During this same period, our assigned point of contact was changed to Mr. XXXX and we started the process over. 
It was not until XXXX that a Shellpoint representative informed us that our normal monthly payments, which we started making in XXXX, were in fact being applied backwards to the period we were in forbearance. Additionally, Shellpoint had assessed late charges for each month from the time we exited the forbearance plan XXXX XXXX XXXX and started the deferment process which is not what was told to me by the multiple assigned point of contacts from the time we started this journey in XXXX. These late charges are continuing to assess even now, almost eight months later. 
In XXXX, Mr. XXXX asked again for specific documents in order to complete our packet. We quickly provided those documents along with follow-up letters to ensure completeness and we thought we were finally in the final stages of approval. XX/XX/XXXX we were given a new assigned point of contact Ms. XXXX and the process started yet again. She laid out a repayment plan and informed us for the first time that we were denied deferment or loan modification. To summarize, at this point, we were 152 days into a process that we had been told repeatedly would only take 5-7 days. All the while, Shellpoint was assessing late fees even though we were making regular, full monthly payments since XXXX. Ms. XXXX gave us a grand total ( see below ) which included all late fees, an additional fee to have someone drive by our house and harass us in a rather menacing manner, and the amount did not reflect the monies we had paid while we were in forbearance ( a total of {$2700.00} ). She informed us that those monies were applied to escrow and that was a separate account so it did not reduce our payment of what is owed for the three months in forbearance. Keep in mind, our total monthly mortgage payment includes our escrow! 
I asked that those monies we had paid be reassigned as partial payments and she informed me that a different department ( loan servicing ) was responsible for re-assigning those funds and removing late charges. We then immediately contacted loan servicing via email and as of yet, have had no response from them. There is no direct line to that department, no means to transfer a customer to that department, and as of recent, we were informed that they would reply via regular mail. As of this writing, we have received no correspondence from that department. However, Shellpoint mortgage calls my wife and me several times a day and when we explain the variance between what we paid versus what we owe the representatives are unable to make any adjustments and can not direct us to a person that can correct this error. 
When I explained to Ms. XXXX that I should not have to pay an additional {$2700.00} that was already paid she told me that if it was not paid that Shellpoint would place a lien or foreclose on the property if the total amount due is not paid. 
As you can see, this is not what we were told would happen by multiple Shellpoint Mortgage representatives under the CARES Act. Prior to this, we had never missed a mortgage payment in our 30 years of home ownership and we feel Shellpoint Mortgage has us over a barrel and we have no avenue in which to fight this. Please note, we are not attempting to get out of paying what we legitimately owe but we do not want to pay an amount which we already paid in good faith nor do we feel late payments are in order as we were told they would not be assessed. We have been actively working to resolve this since late XXXX. Shellpoints 5-7 day window for deferments/loan modification processing has extended now into almost 8 months. We simply want them to reallocate our payments to our mortgage and not our escrow and we want them to remove late charges that we were told we would not be accruing. We also do not feel we should be charged for the person they sent to our home to harass us. I can not overstate how unsettling this was! We were literally speaking with Mr. XXXX the night before as we had been weekly in our attempt to get a decision on our deferment. 
Shellpoint makes it mandatory that you exit the forbearance program and then applies any and all payments backward while charging you late fees knowing you could not possibly ever catch up. This is predatory, if not criminal. As it stands right now, if I never miss another payment, I will accrue late charges each and every month for the remainder of my loan unless I double up on payments. I want these practices to stop. I want the harassment to stop and I want adjustments made to the amount owed to reflect what we have already paid minus late fees and harassment charges ( {$65.00} for a drive by property inspection ). Also, when we have tried to make an additional payment to begin to get caught up to where we feel we should be, we are told they can only take the full payment ( again not taking into consideration the {$2700.00} already paid ). It is obviously in Shellpoints best interest to never make a decision on deferment or loan modification as they continue to charge a late fee of {$200.00} month after month. It is obviously in Shellpoints best interest to never make a decision on deferment or loan modification as they continue to charge a late fee of {$200.00} month after month. 

I appreciate your assistance and guidance and look forward to hearing from you. We truly do not know where else to turn and desperately want to get this resolved as soon as possible. 

In summary : Amount we should owe Forbearance Period XXXX ( Mort ) {$5000.00} XXXX ( Mort ) {$5000.00} XXXX ( Mort ) {$5000.00} Total Due {$15000.00} Less partial payments made during forbearance XXXX {$1000.00}. 
XXXX {$1700.00} Total {$2700.00} Less an additional payment made on XX/XX/XXXX of {$5000.00} Current balance due should be {$15000.00} - {$2700.00} - {$5000.00} = {$7200.00} Shellpoint Mortgage says we owe XXXX ( Mort ) {$5000.00} XXXX ( Mort ) {$5000.00} XXXX ( Mort ) {$5000.00} Total Due {$15000.00} Plus Property Inspection drive by assessment {$65.00} Plus Late Fees for ( XX/XX/XXXX-XX/XX/XXXX) even though those monthly mortgage payments were made {$1200.00} Total of {$16000.00} less the extra payment made in XXXX of {$5000.00} = {$11000.00} The difference in what we say we owe verses what Shellpoint says is : {$4000.00} ( {$11000.00} - {$7200.00} )

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