Consumer complaint received 2023-04-14
Company: Shellpoint Partners, LLC
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
In XX/XX/XXXX I closed on a home ( XXXX XXXX ), with taxes and insurance not subject to escrow. By XXXX, XXXX the loan had been sold two times ( meaning, the third servicer by XX/XX/XXXX ), with the final servicer listed as Shellpoint Mortgage. 

1. I received notice of the transfer to Shellpoint at the end of XXXX, by which time I had already paid the XX/XX/XXXX payment to the 2nd servicer. Well, in midXXXX I received a notification of late payment from Shellpoint indicating failure to pay the XXXX payment due. I called and advised the payment was made to the 2nd servicer, and Shellpoint did not provide adequate notice to me regarding the transition in order for me to direct funds to Shellpoint ( additionally, the notice the company originally provided stated the company would coordinate with the 2nd servicer if I already made payments to that servicer ). 
2. I received notice at the end of XXXX that the company needed satisfactory evidence of insurance, which I did have established at the time of loan closing. I submitted the evidence of insurance, but a few months later received notification the evidence was incorrect. I submitted evidence again, but was then advised my name on the insurance policy did not match the name on the loan ( the policy did not have my first name, but just had my middle and last name, while the loan documents contained my official legal name ). I contacted the Shellpoint to discuss the issue and was advised my insurance policy had lapsed in coverage, which surprised me as I paid for the full year of coverage at loan closing. After discussing the issue further, we realized Shellpoint used the insurance information provided by the closing lender rather than reviewing the Settlement statement which contained the actual insurer. You would think the servicer would use the Settlement statement as the basis for determining insurance ( and the nature of the loan transaction! ). 
XXXX. I coordinated with Shellpoint and the actual insurer to provide the necessary documents ( corrected name and certificate of insurance ). The insurer provided the corrected documentation. 
4. At the beginning of XXXX, I received notification Shellpoint had placed insurance on the mortgage due to the company 's determination of lack of satisfactory insurance for the XXXX period. Despite having a call with the insurer and Shellpoint ( see XXXX ) Shellpoint advised the insurer what was required, and the insurer provided the documentation, Shellpoint then decided the documentation for XXXX was actually not sufficient. Instead of contacting the insurer to clear up the issue, Shellpoint added the insurance for XXXX period. I advised Shellpoint there was a discrepancy with the forced placed insurance, but I never received contact from the company to address the matter ( nor did the company contact the insurer ). 
5. Today, I contacted Shellpoint because the issue is still not resolved, 2 months later, and the company will not remove the insurance. I spoke with a servicing manager ( insurance ), as the customer service representative was little help and we were disconnected twice. 

This company should not be servicing loans. Either it does not have sufficient personnel to support the servicing, or it does not have effective processes and systems to facilitate servicing ( note : I mention systems, because the organization had a system update a few months ago and when I attempted the make a loan payment, the system did not recognize my mortgage information and I was locked out ). When I contact the organization, they do not appear to be familiar with the loan history. I don't know if Shellpoint outsources the loan servicing or it really is an ineffective service in-house.

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