Consumer complaint received 2023-08-31
Company: Shellpoint Partners, LLC
State: OH
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage
Sub-issue: Fees or costs after closing

Complaint:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Ohio XXXX XXXX XXXX XX/XX/2023 Shellpoint Mortgage Servicing Legal and Dispute Department XXXX XXXX XXXX XXXX, SC XXXX Subject : Dispute of Prepayment Penalty Amount Loan Agreement # XXXX To whom it may concern, I am writing this letter to formally dispute the prepayment penalty amount that was recently deducted from my loan payoff balance. As per my original loan agreement with XXXX and in accordance with Ohio state statute ORC Sec. XXXX, the prepayment penalty was to be calculated at 1 %. In correspondence with your closing company, you initially provided the correct payoff amount based on the terms specified in the loan agreement, which included a prepayment penalty of 1 %. 

Subsequently, 10 days after closing, I was informed that the prepayment penalty was actually 3 %, and I was requested to remit the higher amount along with additional fees and interest. 

I would like to emphasize that this discrepancy contradicts both the terms of my agreement with XXXX and the Ohio state statute. As a result, I request that the incorrect prepayment penalty of {$6800.00}, which was deducted from my loan payoff, be adjusted to the accurate amount of {$2100.00} in accordance with the original terms outlined in my loan agreement and the Ohio state statute. 

I believe in resolving matters amicably, and I sincerely hope that we can come to an agreement on this issue. However, should we not be able to find a suitable resolution, I may have no alternative but to pursue legal action to recover the undue charges.

I would like to bring to your attention that I never agreed to or signed any documentation reflecting a 3 % prepayment penalty. The amount I agreed to, both in my loan agreement with XXXX and in compliance with Ohio state law, was 1 %. It appears there may have been a misunderstanding, error, or miscommunication that led to this discrepancy. 

I am attaching copies of both the loan agreement provided by XXXX and a copy of Ohio state statute ORC Sec. XXXX for your reference. As you can see, the terms of the prepayment penalty are clearly outlined in both documents, specifying a 1 % penalty for each of the first XXXX years of the loan term. 


If there are any additional documents or information required from my end to expedite the resolution process, please do not hesitate to inform me. You may contact me at XXXX or XXXX at your earliest convenience. 

Thank you for your cooperation in addressing this matter promptly. I trust that this issue will be resolved in accordance with the loan agreement and Ohio state law. 

Sincerely, XXXX XXXX XXXX XXXX XXXX Enclosures : - Copy of Loan Agreement with Kiavi - Copy of Ohio XXXX XXXX XXXX Sec. XXXX ( https : XXXX ) - Copy of the emails in regard to this issue

Company public response: Company believes complaint caused principally by actions of third party outside the control or direction of the company
Company response to consumer: Closed with monetary relief