Consumer complaint received 2020-06-16
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC (OR)

We purchased our home on XX/XX/XXXX and used XXXX XXXX  to service the loan. XXXX   transferred the loan to New Rez. 

New Rez took over servicing the account in late XXXX or XX/XX/XXXX. Please see document XXXX, which shows a new loan effective date of XX/XX/XXXX and an escrow payment of {$920.00} with an effective date of XX/XX/XXXX with a transfer date of XX/XX/XXXX. Hence the confusion of late XXXX or XX/XX/XXXX. The taxes were due XX/XX/XXXX. Please see document XXXX attached. The taxes owed if paid on that date would be {$5900.00} ( 3 % discount ). 

I closed my re-fiance of my home with the VA ( XXXX ) on XX/XX/XXXX. To my dismay, during this closing time period, it was told to me that our taxes for the home had not been paid for XXXX. 

I called NewRez in late XX/XX/XXXX to confirm that they had not been paid, though there was ample funding in the escrow account. They could not confirm it over the phone, but said I would have to email them ( XXXX ). As the date I was closing on my re-finance was imminent, I could not afford to wait for a response via email. I was told to send them the information and await a refund. 

At closing, I confirmed the taxes owed were {$6400.00} including a late fee of {$240.00}. Please see document SEC-PO-Taxes good to XXXX. 

I paid this amount on top of my closing costs. Please see attached check from the title company and a statement that my taxes have been paid in full for XXXX. 

I feel that the late fees and loss of discount on the taxes should be covered by Newrez. I am owed the difference of what I paid {$6400.00} and what should have been paid {$5900.00} on XX/XX/XXXX for a total of {$430.00}. 

NewRez should have paid my taxes in XX/XX/XXXX when they took over the account, because of this, I lost the discount for paying for the taxes and I had to pay late fees on the owed taxes. 

I emailed this demand to New Rez on XX/XX/XXXX. They responded on XX/XX/XXXX, stating that because they did not have 30 days notice to pay the taxes, the taxes should have been paid by the previous servicer Fairway. 

I contacted XXXX ( XXXX ) on XX/XX/XXXX. On XX/XX/XXXX, they responded saying that when the loan was transferred, it should have been paid by the new servicer. 

On XX/XX/XXXX, I requested the documentation that New Rez used to make their decision. Basically I just want to see the regulation or law that says they should be allowed a 30 day leeway as they seem to believe they get and XXXX disagrees. I have not received a response and am now filing this complaint on XX/XX/XXXX. So here we are with two servicers pointing fingers at each other and no remedy for me. 

I reviewed the regulations and the federal law, which brought me to you. 12 CFR 1024.34 ( a ) says that the servicer shall make payments from the escrow in a timely manner to avoid a penalty. This seems to indicate that since New Rez was the servicer when the taxes were due, they should have made the payment. There does not seem to be a courtesy of 30 days from when taxes are due. The regulation seems clear. See also 12 U.S.C. 2605 ( g ) " the servicer shall make payments from the escrow account for such taxes ... ''