Consumer complaint received 2022-07-07
Company: Shellpoint Partners, LLC
State: NJ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
My husband and I refinanced with NewRez in XX/XX/XXXX. NewRez held our previous mortgage which began in XX/XX/XXXX. At that time, we were given an estimated new monthly payment of {$3200.00}. We understood that this amount could change slightly as it was an estimate and it certainly would be impacted by any significant changes in our taxes. The taxes on this property have not changed significantly in over 10 years and remain steady at present. 

It has recently come to our attention that NewRez was grossly negligent in estimating our new escrow payment at closing in XX/XX/XXXX. We were estimated a monthly escrow payment of {$840.00}, which we have paid. This failure has created an almost {$3000.00} deficit in our escrow that was only flagged and acted on due to the annual escrow summary. NewRez failed to catch this error during the refinancing process, during closing in XX/XX/XXXX, and every month until XX/XX/XXXX. As such, we as consumers had no ability to adjust our finances in real time to account for NewRez 's error. Instead, NewRez allowed the error to stand and now wants us as the consumer to bear the burden of a grossly inflated monthly mortgage payment of {$4500.00}. Additionally, NewRez wants us to bear the burden of making up the {$8200.00} deficit created by their own negligent estimate. This means we would be absorbing an additional {$680.00} per month on top of the corrected escrow amount of an additional {$580.00}, for a total of {$1200.00} more per month than we were previously estimated and paying. To summarize, our payments were estimated to be and have been {$3200.00}. The new monthly payment is expected to be {$4500.00}. 

Our monthly estimate at closing was {$3200.00}. We should have been estimated {$3800.00}. This 20 % increase is beyond what a reasonable person would expect an estimate to shift. There is no other way to define this practice other than to call it predatory lending. Had we received the correct estimate, we may have opted not to refinance or may have gone with another lender. NewRez knowingly took away our ability to make a sound financial decision. And since their estimate was grossly deflated, our monthly payment is now estimated at {$4500.00}. 

I reached out to NewRez by phone on XX/XX/XXXX to file a complaint. I was told by a supervisor, XXXX, that our conversation would constitute a complaint. When I didn't receive any contact after 2 weeks, I called again on XX/XX/XXXX. At this time I was told that the complain was submitted but NewRez protocol is that a response is not provided. I was also informed that the complaint would not be followed up on until I write a complaint and then I would get a response in 5 to 7 days. I submitted the complaint on XX/XX/XXXX. On XX/XX/XXXX I received a letter stating that my new monthly payment would be {$3900.00}. There was no explanation in the letter as to how or why this payment was calculated but it remains {$130.00} more than what our mortgage payment should be.

Company public response: Company believes the complaint provided an opportunity to answer consumer's questions
Company response to consumer: Closed with explanation