Consumer complaint received 2024-08-13
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC (NJ)

My mortgage was being serviced by XXXX XXXX, and at the end of XX/XX/XXXX they performed an annual escrow analysis and informed me that there was an escrow overage of over {$1900.00}. I received a check a few days later, but when I went to cash it on XX/XX/XXXX, I was informed that there was a stop payment on the check because the servicing rights were transferred to Shellpoint mortgage effective XX/XX/XXXX. I was further informed by XXXX XXXX that the escrow balance was transferred to Shellpoint, so any escrow overage due would need to come from them. 

I contacted Shellpoint several times in XX/XX/XXXX, asking them to send me the overage refund. They said that they would need to perform an escrow analysis first which would take 10 days. I waited the 10 days, only to have them tell me it would be delayed one day because of the XXXX holiday. When I called after that date passed, I was told they were " backed up '' and would need weeks to complete it. I was angry at the delays and changing excuses, and escalated to a manager who said I would get the analysis done in 3 days. 

When the analysis was complete, Shellpoint did it incorrectly, and informed me that my mortgage payment would go from {$2500.00} to {$4300.00}. They sent me the analysis, and it showed that they were treating the annual home insurance premium as a monthly payment. I had been paying the insurance myself for over a year with the prior servicer, so there was no need for Shellpoint to pay it at all. 

After speaking with a manager in a 2-hour call, I provided Shellpoint on XX/XX/XXXX with documentation showing the correct insurance information, proof that I was paying it, and demanded that they recalculate the escrow correctly and not charge a monthly payment of over {$4000.00} when the payment should be {$2500.00}. 

I then had a conversation with XXXX with XXXX XXXX, an Escrow Insurance specialist working for Shellpoint, and clarified the issue with her. She emailed me a document on XXXX confirming that Shellpoint acknowledged that I would be paying the hime insurance premiums through XX/XX/XXXX, at which time Shellpoint would start making insurance payments and applying that to the escrow. 

I was able to make a XXXX payment of {$2500.00}, but there was no escrow analysis re-run. Instead, I was informed that I'd have to wait until their annual cycle for my loan. This is unaccepable because I had a check for {$1900.00} in my hand back on XXXX that was due to me ; Shellpoint is trying to hold my escrow overage and earn interest on it instead of returning it to me. 

To add insult to all of this, I went to make my XX/XX/XXXX mortgage payment, only to find that Shellpoint has gone back on their word and has set the minimum payment to {$4300.00} based on the incorrect escrow analysis that their agent said would not be applied. Now I'm concerned that I'll be assessed with a late payment on my credit report if I don't pay this by XX/XX/XXXX, but I refuse to pay this invalid amount. 

I work in the mortgage industry, An escrow analysis is a simple, routine function that can be performed in minutes. Shellpoint has been servicing my loan for less than 120 days, but they can't perform this basic function correctly. Theylie about delays in responding with an analysis, and when I have the correct amount confirmed in writing and sent to me by email, they go back on their written word less than a month later and are putting my credit rating in jeopardy. 

I'm hoping that filing this complaint will prompt a quick correction and refund of the escrow overage they've been holding, but it shouldn't have taken this.