Consumer complaint received 2022-07-06
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC (TX)

This complaint is based on a mortgage servicing transfer to Shellpoint from XXXX in XXXX of 2022. This transfer occurred and the communication sent to me regarding the transfer was poor and through print only. I have attached the original letter which included only a statement that I did not receive and open until XX/XX/XXXX. The actual sale of ownership communication was not sent until XX/XX/2022. Please see attached document. When statement mail was received, I attempted to go online and set up my account. I was not able to do this initially because the transfer from old to new servicer Shellpoint had not been completed and I was instructed by the phone agent to try again in a few days. I did make my first payment over the phone on XX/XX/XXXX for the month of XXXX as I was under the impression that the XXXX payment had been made through XXXX, my previous mortgage company. The confirmation number is XXXX. 

The agent informed me that the system was not ready for recurring payment and account setup. I was instructed to return 5-7 days later to try again online. I returned a week later and attempted to set up recurring payments as instructed by the agent. I put in all of my account information and confirmed that the recurring payment was set up. The next month I assumed based on this action that my payment was being made based on the online account set up. 

In early XXXX, I looked at my account in XXXX and noticed the balance was higher than it should be. I checked and noticed the payment for my property had not been made. I called Shellpoint and learned that the payment had not been made for XXXX. I promptly inquired why the payment was not made and was informed that for some reason my account had not adequately been set up for recurring payments even though my account information was present when I checked online again. I had not been made aware that there was a late payment scenario. I went ahead and made two payments, one for XXXX and XXXX over the phone with the Shellpoint agent. See attached document. I also inquired if this missed payment would have a negative impact on my account or credit. I was informed that it would not. 

The agent on the phone informed me that I was still within the 90-day grace period for a new customer and the transfer to Shellpoint and that it would be fine since I made the two payments at once and was caught up. Again, I trusted the agent and assumed all was well. 

In XX/XX/2022, I was seeking a mortgage loan for an investment property and learned that I had in fact been reported for late payment by Shellpoint and my credit had taken a hit which was going to cost more to acquire the loan. This was surprising since I was previously informed by the Shellpoint agent that all was ok, especially since I was a new customer. Furthermore, I never received a notification or communication that I had been reported to the credit bureau for late payment. 

With this negative impact to my credit, I was now going to need to pay significantly more to get a better rate for the new mortgage loan. I promptly called Shellpoint. After talking to 3 people and 2 calls dropped while on hold and essentially getting 3 different answers from they would take care of it and we cant do anything, I escalated that call to a manager. The manager I talked to informed me that they could not do anything to remove or reverse the reporting. I asked for a thorough investigation at which time she said they would and I would hear back by mail in 7-10 days. I received a letter in the mailing which stated this issue was not reversible and that the report to the credit bureau would remain. I have filed a complaint with the CFPB based on XXXX XXXX I strongly feel this has resulted from inadequate digital and physical communication based on the transfer of the loan, inadequate time for software systems to sync and accounts to be set up, and poor handling of the situation by the agents and staff with whom I engaged with and which gave me different information and potential resolutions.