Consumer complaint received 2020-04-09
Company: Shellpoint Partners, LLC
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/2019 I received a letter from Shellpoint Mortgaging Servicing about a Lender Placed Insurance Change for my property in SC stating " we placed lender-placed insurance coverage on your property '' - This was the first I had seen correspondence and noticed they addressed it to my previous address while all my monthly mortgage statements had been coming to my current address. 

In starting to review my mortgage account I noticed a series of " Insurance Premium Disbursements '' starting in XXXX of XXXX  XXXX {$280.00} taken out of my escrow account. XXXX {$55.00}, XXXX {$90.00}, XXXX {$90.00}, XXXX {$53.00}, XXXX {$55.00} .... Then in XXXX XXXX I received a Annual Escrow disclosure statement showing the charges removed from my escrow and that my escrow was underfunded by {$450.00}. 

In XXXX I provided proof of insurance and confirmed while on the phone they received it. They asked me to call back .... For months I was never able to get a hold of anyone on their customer service line, then suddenly the phone number they provided was disconnected '' This is also the only number listed on their website. 

In XXXX I was notified by mail that my XXXX mortgage was higher and my new amount is {$930.00} up from {$720.00} due to escrow shortage. I immediately did a bill pay to pay the full amount to prevent default or past due fees .... this additional amount was applied to my account as principal only. 

XXXX I resumed phone calls to mortgage servicing dept with Shellpoint to figure out why charges are still accumulating, they explained they need the HOA master insurance policy which was provided that same day at XXXX XXXX. I called to confirm they had it, they explained it had to be entered. That day I was able to reach XXXX XXXX at XXXX XXXX, she asked me to e-mail the policy directly to her at XXXX. While we were on the phone she confirmed it was uploaded to my account. and the next step is the lender based insurance should be removed. She directed me to customer service to help with he refunding of the money and how that worked. Customers service directed me back to loan servicing. XXXX I wrote to loan servicing to request that the auto draft service be cancelled and I would prefer to pay with paper will and bill pay once I see the bill. I then called the customer service and XXXX in XXXX SC employee ID XXXX cancelled auto draft. I asked what my payment would be for XXXX and she could not tell me, she explained an escrow analysis would need to be done through the mortgage department and she then transferred me to XXXX in the mortgage department based in AZ. He explained that I was responsible to pay another {$930.00} in XXXX because they can not do the escrow analysis for 2-4 weeks, and it was my fault for lapsing my insurance. I asked if there was any record that my insurance had lapsed since the new XXXX 's were on file, he stated he couldn't see any proof of the HOA policy. He explained the notified me via mail and that this was my fault. I asked when he notification letter was sent, he stated XX/XX/2019 & the address was my my old address. So I never got the notice and that is when they started charging the lender based insurance fees. When I asked to speak to a supervisor I was placed on an extended hold and then the line was disconnected. 

As of today, I have a final call into XXXX XXXX in their XXXX SC customer service call center explaining she e-mailed her supervisor XXXX XXXX who can reach out to the insurance dept to have the escrow analysis done in 24 hours to correct my mortgage amount and they will all me back tomorrow. I do feel that Shellpoint is Predatory to mortgage customers using forced lender based insurance to gain profit. At this time this issue is still ongoing. 

Sincerely, XXXX XXXX

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation