Consumer complaint received 2020-01-17
Company: Shellpoint Partners, LLC
State: MA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/XXXX NewRez LLC d/b/a Shellpoint Mortgage Servicing f/k/a New Penn Financial XXXX XXXX XXXX, XXXX XXXX XXXX, SC XXXX VIA FIRST CLASS MAIL AND CERTIFIED, RETURN RECEIPT REQUESTED XXXX XXXX XXXX XXXX XXXX ALSO VIA FACSIMILE TRASNMITTAL XXXX To Whom it may Concern ; I am Counsel to Mr. XXXX XXXX and am contacting you pursuant to the provisions of Massachusetts General Laws, Chapter 93A, Section 9, the Consumer Protection Act.

Upon my review of various correspondences from your organization it is clear that you have committed a Breach of Contract and other violations of the Consumer Protection Act. These actions relate to Loan No. : XXXX, date of execution, XX/XX/XXXX ( hereinafter the Loan ). In addition as clearly delineated below, your acts are far beyond the standard of willful and knowing and as such fulfill the statutes requirements to initiate a trebling of the existing damages as well as attorneys fees.

Your claim that there were delinquent taxes is self-serving and false. You made no effort to inform Mr . XXXX of your tax vendors assertion, but instead unilaterally took steps that you have no authority to take, and your failure to ensure accuracy in your decision making has now caused irreparable harm and damages. 

Furthermore, in light of your assertion that this breach was initiated by a tax vendor, I am further requesting the name of said, tax vendor, so as to place them on notice of this 93A Demand Letter as well as any/all documentation supporting these claims, statement or assertions. 

As part of my outline of requested relief, I make specific reference to your correspondence dated XX/XX/XXXX ( hereinafter XX/XX/XXXX Letter ) ( See attached Exhibit A ), which amounts to several admissions of liability, continued unfair and deceptive acts and practices and settlement attempts best described as unfair and deceptive settlement efforts. 

Despite your claim that this loan is in default for XX/XX/XXXX through XX/XX/XXXX, the reality of this situation is as follows ; 1. Far before XX/XX/XXXX, in no less than 4 separate correspondences from Mr . XXXX himself, you were placed on notice of the Escrow Account Dispute. The investor, the servicers and all parties representing the lender or anyone that you might have any legal privity with, past or present, recognized the existence of a Property Tax Deferral on Mr. XXXX property, pursuant to M.G.L. c. 59 s. 5, clause 41A ( See attached Exhibit B ). This was the primary reason why the loan closed as borrower paid. Aside from the Escrow Waiver executed at the inception of the Loan ( See attached Exhibit C ), Mr . XXXX also received assurances via email from a specific employee of New Penn Financial.

2. Despite all the efforts made by the banks, investors, underwriters, title examiners and insurers and closing agents and attorneys, that prepared and assembled the Loan Origination contracts and documentation, your organization decided to unilaterally change the explicit terms of the existing contract. On or about XX/XX/XXXX Mr . XXXX noticed the presence of an Escrow Balance line item on his monthly statement. This effort was a clear breach of the contract established on XX/XX/XXXX. As you clearly admit ; the loan closed as borrower paid, non-escrow for tax and insurance since the loan to value was less than 80 %. 

3. Once again your XX/XX/XXXX Letter provides explicit evidence of your intention to continue the breach of contract and increase your damages when you continue to discuss your Escrow Analysis. You appear to have completely embraced the Breach of Contract and are prepared to continue with it despite your admission supra item 2.

4. Once again your XX/XX/XXXX Letter provides explicit evidence of your intention to continue the breach of contract and increase your damages when you discuss your Investor not approving a tax deferral. Now your organization is presenting the classic psychological stages of grief. Perhaps grief at the knowledge that you have committed acts in violation of the contract as well as the Massachusetts Consumer Protection Act. This discussion is either some attempt to defend your Breach or perhaps this is the Denial stage ; You are now calling the Breach a simple offer by Mr . XXXX to have his Escrow account waived, which you are simply rejecting, of course. This is the basis of your unfair and deceptive actions.

5. Once again your XX/XX/XXXX Letter provides explicit evidence of your breach of contract. Your offer to approve a shortage spread is a complete and absolute admission of liability for breach of contract and also prima facie evidence of your unfair and deceptive settlement practices. As your first attempt to mitigate damages does not offer anything near the benefits afforded Mr . XXXX by the Property Tax Deferral Statute, M.G.L. c. 59 s. 5, clause 41A.

6. Once again your XX/XX/XXXX Letter provides explicit evidence of your intention to continue the breach of contract and increase your damages when you discuss offers that provide none of the benefits afforded by the original Tax Deferral. I speak specifically to your claims that this loan is in Default. Mr . XXXX has always been prepared to pay the monthly principal and interest figure as agreed in the original contract, yet as part of your continued unfair and deceptive acts, you have comingled this disputed Escrow Issue, with the monthly statement amount. You are clearly aware that this dispute refers to an escrow balance and in no way relates to loan monies, however your fateful decision to co-mingle these disputed escrow figures with the monthly loan payment is yet another unfair and deceptive act.

Despite the tenuous stance of your current circumstances, Mr . XXXX is a fair individual and has no desire to take advantage of your servicing and management deficiencies. As soon as your organization discontinues its breach and other unfair and deceptive acts, Mr . XXXX is prepared to continue making full payment on the total principal and interest figure that is due and owing. 

Your Organization must immediately cease and desist any/all claims or efforts regarding default of this loan. Furthermore, Mr . XXXX is simply seeking the benefits afforded to him under the existing Property Tax Deferral Rules of the Commonwealth of Massachusetts. You are aware or should be aware of these as well as all applicable Massachusetts rules and regulations. I am certain that you and your organizations Board of Directors and specifically named Managers made such assurance to the Secretary of the Commonwealth of Massachusetts when you registered as a Foreign Limited Liability Company on or about XX/XX/XXXX. 

Furthermore, I make formal demand that you remove this account/loan from any/all default or late status of any kind, including but not limited internal memorandum and account notes, any and all information relayed to a 3rd party or other reporting or data gathering entity. Mr . XXXX reserves the right to amend this demand should any additional effects of adverse financial dissemination arise at any point in the future, with no statute of limitation as you are currently on formal notice of the past present and seemingly ongoing breach of contract, and unfair and deceptive acts on the part of your organization, its agents an servants. 

Pursuant to the provisions of Massachusetts General Laws, Chapter 93A, Section 9, the Consumer Protection Act, you have the opportunity to make a good-faith response to this letter. Your failure to do so could subject you to triple damages, attorneys fees and  costs, as such I strongly advise you to bring this to the attention of your legal counsel. 


Sincerely, XXXX XXXX XXXX, Esq. 
Staff Attorney XXXX XXXX XXXX XXXX XXXX ( XXXX ) XXXX XXXX, XXXX, MA XXXX Phone : XXXX Fax : XXXX Email : XXXX Web : XXXX cc : XXXX XXXX XXXX XXXX XXXX

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 explanation