Consumer complaint received 2021-09-22
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC (CA)

I, XXXX XXXX, refinanced my original mortgage with Newrez/Shellpoint Mortgage in XX/XX/XXXX. In XX/XX/XXXX, the company sent me an escrow surplus check in the amount of {$4500.00} and reduced my payment from approx. {$2900.00} to {$2700.00}. I was suspicious of this action so I called to verify. I was told there was a miscalculation in the escrow amount and the preceding actions were a result of an escrow analysis conducted. 

After receiving numerous letters and emails from Newrez regarding me meeting the criteria to refinance for a lower interests rate ; in XX/XX/XXXX I called to inquire about the opportunity to save money. During the conversation, it was clear to me that the loan officer had inaccurate information regarding my monthly mortgage payment. He informed me that he could reduce my monthly payment from approx. $ XXXX/month to $ XXXX/month. He sounded confused when I explained that my current pay was approx. $ XXXX/mth. He told me he needed to investigate my claim further and he would call me the following day. He never called me back and two weeks later I received a letter indicating effective XX/XX/XXXX my payment was increasing to $ XXXX and effective XX/XX/XXXX my mortgage payment would increase to approx. $ XXXX/mth. I immediately contacted Newrez to discuss the changes and find out why this happened to no avail. I then went to my loan officer that refinanced my loan with this company. She and I called Newrez on XX/XX/XXXX to discuss the drastic increase. After a two hour discussion and Newrez indicating there was an increase because my property taxes were delinquent and they had to pay the delinquent taxes from escrow, we agreed I would pay back the surplus amount they had sent me in XXXX, I would also pay the increase for XXXX to ensure my loan remained current. The loan officer and I reviewed the impounded payment history with Newrez and all parties agreed there was an error with the tax amounts. That day paid Newrez {$4600.00} towards my escrow and on XX/XX/XXXX I paid Newrez {$3200.00}. Newrez agreed to contact the XXXX XXXX XXXX assessor to discuss the error in an effort to obtain accurate tax records and conduct another escrow analysis. Newrez agreed to provide me with an update of both actions and a reduced payment plan by XX/XX/XXXX. 

On XX/XX/XXXX, Newrez sent me bill in the amount of {$3800.00}. I called to inquire about the agreed discussion on XX/XX/XXXX regarding the accurate tax records and the review of the escrow after I paid the requested amount on XX/XX/XXXX. I was informed that Newrez did not apply the {$4600.00} to the escrow account and continued to say the property taxes were delinquent and/or the annual taxes had increased. I explained to Newrez that I had contacted the XXXX XXXX XXXX XXXX and they informed me that my taxes were not delinquent and had not been delinquent during the time that I've owned the home. I provided a document from XXXX XXXX XXXX to Newrez and requested they immediately conduct an escrow analysis. They refused to conduct another analysis and said they had already done so and my escrow remains short. 

During the entire month of XXXX, Newrez continued to call me daily demanding that I pay the increased mortgage of {$3800.00} and indicated that my escrow was now short by {$7500.00}. I contacted Newrez weekly requesting they conduct another escrow analysis because the drastic increase in the mortgage from {$2700.00} to {$3800.00} was not accurate and these practices were illegal and unethical. On XX/XX/XXXX I spoke with a supervisor, XXXX, and after I explained my situation she told me to pay the old payment of {$2700.00} so that I would not be delinquent on my mortgage so I obliged. She explained that the company policy allows its customers to pay the previous mortgage amount for two months until any and all concerns have been addressed. Newrez continued to contact me daily demanding that I pay the XXXX and XXXX mortgage payment in the amount of {$3800.00}. When I asked about the {$2700.00} payment that I had made in XXXX they explained that payment was applied to the escrow which was still short and my XXXX payment was due. 

I spoke with another Newrez representative, XXXX XXXX, on XX/XX/XXXX and she promised me that an escrow analysis would be completed. During the week on XX/XX/XXXX another Newrez agent explained that the mortgage payment had increased so drastically because my home owners insurance had lapsed and the company applied their internal insurance. I immediately contacted my insurance company, XXXX, and they informed me there had not been a lapse in my homeowners insurance with their company since the purchase of the home in XX/XX/XXXX. I explained this to Newrez and they continue to demand that I pay the increased mortgage amount with no clear explanation. 

Last week, I spoke with a Newrez representative XXXX, and he informed me that XXXX did not have the authority to approve me to pay {$2700.00} in XXXX and the payment I made for XXXX was applied to escrow ; therefore, my mortgage is delinquent for XXXX and now XXXX. He also offered me foreclosure counseling services. 

Yesterday, I received a letter from Newrez/Shellpoint indicating that I'm now behind on my mortgage payment in the amount of {$7800.00} and threatening that I would lose my home. 

To date, Newrez/Shellpoint has not provided me any documentation where they've conducted an escrow analysis or provided any justification for increasing my mortgage from $ XXXX to {$3800.00} in 30 days. I find this to be illegal and unethical practices and I'm afraid of losing my home due to their incompetence.