Consumer complaint received 2020-05-14
Company: Shellpoint Partners, LLC
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
The entire problem began in XX/XX/XXXX. A few months prior, New Rez, a Shellpoint Mortgage Service took over my loan from XXXX XXXX XXXX. My first mortgage payment to New Rez was due XX/XX/XXXX. The mortgage payment was consistent with what I was paying to XXXX XXXX XXXX. In XX/XX/XXXX, I received notification from New Rez that it intended to obtain a lender-placed flood insurance policy for my property. 
I am a resident of XXXX XXXX XXXX Condominiums  and our Condominium Association provides and pays for flood insurance for the entire community and all its residents. At my request, a copy of the Declaration Page of said insurance policy was faxed to New Rez to the fax number provided in the form letter. I spoke to a New Rez employee who verified receipt of said information. 
On XX/XX/XXXX New Rez sent out a letter of notification that, in fact, New Rez had purchased said lender-placed flood insurance on my behalf. On XX/XX/XXXX XXXX XXXX of XXXX XXXX XXXX XXXX again faxed a copy of the Declaration Page to New Rez. Later that same day, on XX/XX/XXXX I spoke to New Rez employee XXXX XXXX who verified receipt of said documents. 
I thought that finally, all insurance issues were resolved. But then, my XX/XX/XXXX mortgage bill from New Rez showed an increase of over {$800.00}. I contacted New Rez immediately and spoke to an employee who told me that New Rez took out a Flood Insurance Policy on my behalf and added the payment to my mortgage bill. I went through the entire explanation again with this employee. I was informed that my mortgage bill, along with any escrow monies would be reviewed, and that I would receive a letter within 10-12 business days. When I did not receive said letter, I contacted NewRez again. 
On XX/XX/XXXX, I spoke to a New Rez employee, XXXX XXXX. He informed me that New Rez had not cancelled the Flood Insurance Policy in my name and the added cost was still included into my mortgage payment. I again went through the issue. XXXX thoroughly reviewed my issues and informed me that New Rez was in receipt of my Flood Insurance information. XXXX informed me he was writing up a ticket and that I would receive an answer from the New Rez Insurance Dept within 10-12 business days. 
XXXX gave me another phone number/department to contact, which I did. I spoke to XXXX who also informed me that New Rez was unnecessarily charging me for Flood Insurance. XXXX stated that she made all the necessary corrections on her computer- verifying that New Rez was in receipt of my Flood Insurance Policy. In addition, XXXX stated that she sent a notification/analysts of my account to the Mortgage Dept -to fix their information. She stated that I would be receiving a letter within 10-12 business days confirming this. 
On XX/XX/XXXX, I received notification from NewRez that my mortgage was in arrears. NewRez had applied my XXXX and XXXX mortgage payments to the Flood Insurance Policy ( that I did not need ). For over 10 years, my mortgage payments are sent monthly from my bank account to my mortgage company. I have never missed a payment! 
On XX/XX/XXXX, I was on the telephone with employees from New Rez for 2 hours and 14 minutes - most of which was being held on-hold. I spoke to XXXX XXXX, XXXX XXXX XXXX XXXX ( would not give me her last name ), XXXX XXXX, and XXXX XXXX or XXXX. 
XXXX listened to my issues but then told me that she could not help me. I needed to contact the Insurance Department who issued the Flood Insurance policy. She said she did not have a telephone number to give me. I asked to speak to her supervisor XXXX XXXX identified herself as a supervisor and spoke to me next. She too said it was the Insurance Dept who added the Flood Insurance. While XXXX put me on hold, I used by husbands cell phone and was able to reach XXXX XXXX who identified herself as an employee in the Insurance Dept. XXXX stated that the New Rez Insurance Department has nothing at all, no flood insurance policy on my behalf ; that the policy was cancelled back on XX/XX/XXXX after New Rez received all necessary documentation. XXXX XXXX verified that reimbursement was made for the one month policy. 
XXXX further stated that the money held in escrow is not for flood insurance. I provided this information to XXXX once she took me off hold. 
XXXX then transferred me to XXXX XXXX who informed me that the money going into escrow account was for Flood Insurance. I asked to speak to XXXX supervisor and I was informed that it is XXXX XXXX. 
Finally, during a second conversation with XXXX in which I informed her of XXXX specific statements, XXXX agreed to look into things more thoroughly. She told me that she needed to speak to other Departments. She asked me to give her time to delve into the mess. She promised she would call me the next day, the afternoon of XX/XX/XXXX. 
On XX/XX/XXXX XXXX did call me. She reported that she has requested an expedited analyst of my account. I told her that previously XXXX had said the same thing on XX/XX/XXXX and nothing resulted. XXXX stated that XXXX request of analyst was not allowed because, unbeknownst to her, one was done within that 30 day period and there can not be 2 done in a 30 day period. 
XXXX then stated that, as we were talking, she fixed the problem retroactively on her computer - so that my mortgage would not show it in arrears. Without going into further detail, XXXX assured me that she would stay on-top-of this issue until it is corrected. in addition, she assured me, that if Credit Approval Agencies are notified that my mortgage is in arrears, that I will have a recourse for all of it to be removed. XXXX asked to give me 3 to 5 more business days to assure that corrections to my account have been made. She agreed to call me once that is done - but no later than Thursday, XX/XX/XXXX. I did not receive a call back from XXXX on XX/XX/XXXX of since. 
On XX/XX/XXXX, I contacted New Rez and spoke to XXXX XXXX. He informed me that an analyst was completed and all had been corrected. He said I should be receiving a refund for the Flood INSURANCE POLICY THAT I NEVER NEEDED. He stated that New Rez had 30 days to SEND OUT THE CHECK TO ME. I asked to speak to a supervisor and none was available. 
On XX/XX/XXXX, I telephoned again to New Rez and spoke to XXXX ( XXXX ). He reported that New Rez authorized the amount of {$810.00} ( confirmation # XXXX ) and I should be receiving a check within 30 days. 
On XX/XX/XXXX, I received correspondence from NEW REZ regarding the XX/XX/XXXX analyses of my account. In this letter there was a non-negotiable check for {$890.00}, indicating that a authorized check of that amount was being processed and sent to me. 
As of XX/XX/XXXX, I had not received my refund from New Rez. I again telephoned New Rez and spoke to XXXX. She transferred my call to XXXX of Shellpoint Mortgaging Services who said that no such check/monies had been released to me. 
On XX/XX/XXXX, I again called New Rez again and spoke to XXXX of the XXXX, SC office. It took me almost an hour to explain my situation and for XXXX to research my situation. She stated that some of the notes in my record were inaccurate and that the amount owed me was being sent back to the previous mortgage company ( XXXX )!! She indicated that it is quite clear that New Rez owes me {$890.00}. XXXX wrote up a ticket, TASK 345 and told me to call customer service back in a week to check on its status. 
On XX/XX/XXXX, I again called New Rez and spoke to XXXX XXXX. She reports that this task has been assigned to XXXX XXXX and that there are no notes regarding the status. 
Today is XX/XX/XXXX and I again called New Rez and spoke to XXXX   from the XXXX  office. He stated that no refund has been sent out to me. 

At this point I am wondering if NewRez is customarily buying unnecessary insurance policies for its mortgagees as a means of generating revenue. By adding the costs of these insurance policies to the mortgage payments, mortgagees have no other recourse but to pay for the policy. If refusing to pay for the unnecessary policy, the debtor risks the chance of being held in arrears. I can't believe that I am the onlyNewRez/Shellpoint client who is experiencing this situation. Despite tenacious persistence on my own behalf, I have been unable to obtain the {$890.00} that NewRez admits is due me. 

Sincerely, XXXX XXXX

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