Consumer complaint received 2024-05-13
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: Shellpoint Partners, LLC (PA)

I purchased my home mortgage on XX/XX/year> from NEWREZ, LLC with 3 % down and that triggered PMI to be added to my account. When working with the mortgage company, from the beginning, I stated that I would do a recast on my mortgage at the earliest possible time to remove the PMI ( I had to sell my prior residence before I could make the recast ). In XXXX once my closing happened on my prior property, I called Newrez to ask about the recast and was told I had to wait until XXXX ( 60 days past opening the mortgage ) to do a recast. I called back in XXXX and began the recast process. I made principal only payments on XX/XX/year> of {$57000.00} and {$500.00} totally {$57000.00} to get the threshold above the limit that mandates the PMI, I was instructed by the customer service department exactly how much money I needed to pay in the recast process to remove the PMI, I would not have came up with {$57000.00} on my own! I was originally paying {$2800.00} and after talking with the customer service department that was handling the recast they told me that the PMI was {$110.00}, that it would come off in 1-2 billing cycles, and that I would receive a new lower payment. My new payment that came on my invoice stated I owed {$2400.00} and I made this payment. I noticed that the PMI still had not came off and I called in XXXX to inquire about why it was still on there. I was told that it was coming off because my recast paperwork was only filed on XX/XX/year> and not in XXXX. Again I made my payments and again PMI disbursements happened from my escrow account. I called back again and was told that my payment was my payment and that it would not be going down, I found this odd and asked to speak to the XXXX department and I was told they do not field phone calls. Finally in XXXX, I was given an answer that made sense and that was that the paperwork to remove PMI was never submitted. I asked for a refund for the 7 months of PMI withdraws from my escrow account ( $ XXXX {$810.00} ) because I had done the recast to remove the PMI back in XXXX. Newrez told me that the money was paid out and that there was nothing they could do. When I spoke to a supervisor, the supervisor told me that I never requested to have the PMI removed from my loan. I explained that I did in XXXX when I took care of the recast. I said that I remembered talking to their representative and asked specifically what amount I need to pay to get me to the point that the PMI comes off and I wanted it removed from my new payment amount. They assured me that it would come off. This was never the case and now I am told that the money is gone and it is my fault that I did not check up on the actions of the customer service department. The supervisor literally told me that I should have called and asked the next day if the paperwork was submitted! This is unacceptable. I have attached a billing history since the loan was originated and a post-it note that I wrote down the instructions with the amount to do the recast, the amount of the PMI to come off from the new payment, and what the customer service representative said my payment would look like without the PMI from the XX/XX/XXXX interaction. This company also made the mistake of posting a payment of mine twice and then when they reviewed my account when I asked for the PMI back they took my XXXX payment, applied it to the payment they double charged for back in XXXX, AND charged me a late fee that I had to have waived. I originally set up auto debit and that also malfunctioned and I had to have a late fee waived. This company has been nothing but trouble since the start.