Consumer complaint received 2020-01-24
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC (FL)

Shellpoint Mortgage, Servicing Agent, for New Residential Mortgage took over the servicing of my loan in XXXX of this year. I've had nothing but problems which I have unsuccessfully tried to resolve with no avail. This company continues to threaten foreclosure, continues to harass me, tries to force me into refinancing, fails to maintain proper billing and payment records, fails to provide proper escrow amounts due and owing, illegally reports late charges and payments to credit bureaus ( intentionally trying to ruin my credit so that I can not easily refinance ), illegally charges me late fees, property inspection fees, and has charged me over {$1200.00} in fees to send the house into foreclosure. These fees have all been acknowledge by Shellpoint to be in error ; however, my credit report has not been updated. 

They are playing very nasty games in order to force my hand into refinancing my loan. They have also repeatedly denied my rights under the ADA by failing to correspond to me in writing or email when asked ; failed to let me speak to their legal department ; failed to let me speak to a supervisor when requested ; failed to stop collecting and paying out escrow fees after I have asked them in writing to stop. All kinds of FDCPA violations are occurring. None of the statements I receive coincide with any other or make any kind of sense whatsoever. 

I am attaching copies of all of my loan statements, which I receive about 2-3 days before they are due on the XXXX of the month. I believe this in and of itself is a violation. However, each of my statement show that I owe a XXXX  balance. Therefore, I don't pay a XXXX  balance. Then Shellpoint racks up illegal late charges and property inspection fees. Although they have agreed that my loan is not in default and those fees shouldn't have been added to my account, they continue to be added. Then Shellpoint has illegally reported to the credit bureaus that I am late in my payments which appears to be on these fees that are illegally added to my account in the first place, and then later Shellpoint acknowledged were in error. 

I have a loan that is in two parts : An interest bearing portion and a non-interest bearing balloon payment. The balloon payment of {$85000.00} is not due until the year XXXX or the date I sell my house, or the date I pay the entire interest bearing first mortgage in full ( including any penalties, late fees, or other fees assessed. ) Because I have prepaid the majority of my first mortgage ( but not all of it ), Shellpoint is demanding I refinance or pay the {$85000.00} balloon payment. Further, even though I have prepaid all but the last payment, they have illegally reported to the credit agencies I have been late ; thereby, diminishing my chances to refinance with any company other than them. How on earth can one be late on a mortgage payment when it has been prepaid by 30 years? Further, the terms of my mortgage indicate there is no prepayment penalty. Forcing someone to refinance a mortgage with an interest rate is exactly that, a pre-payment penalty. I don't want to refinance as my balloon payment is set at a 0 percent interest rate. Refinancing would be financially detrimental to me and a huge financial windfall to Shellpoint. 

Shellpoint bought these loans from XXXX, and much to their surprise got stuck with a 0 percent interest rate loan. They will be making no money off this loan unless I refinance ; therefore, they are practicing deceptive and illegal practices in order to strong-arm me, a XXXX person, into refinancing with them ( since they illegally reported to my credit report and I can not refinance with any other bank ) so that they magically change a 0 percent interest rate loan they own to a 5 percent or more rate loan. This obviously isn't in my best interest and only benefits Shellpoint. 

I can't get a straight answer on how much I owe for escrow as they have royally screwed up that account. I've sent them {$300.00} on XXXX, which is {$100.00} more than my statement shows for escrow payment due, and Shellpoint refused payment and sent it back to my bank. Their annual escrow disclosure is wrong, but I've contacted them several times and they have refused to fix it. I've already paid them a significant amount of escrow money this year, and it's doubtful I owe them anything or much at all. I would be more than happy to pay the escrow ( even thought they were not supposed to pay out the funds per my written request ) just to be done with the matter, but they refuse to give me a correct amount I owe. 

I've been in contact with both XXXX XXXX, and his supervisor, XXXX XXXX on several occasions who assured me my loan was not in default and Shellpoint wouldn't be foreclosing. XXXX XXXX chould n't 'understand why I was still having problems as he forwarded my complaint to XXXX XXXX , and they both believed the matter had been resolved. XXXX stated I was smart to keep the 0 percent interest loan I have. He assured me in no way would Shellpoint foreclose on me and that I am 100 percent within the terms of my mortgage. He stated many others have this arrangement as well, but they were refinancing. He even commented he didn't understand why, as I was doing the smart thing by keeping my 0 percent rate. I was told not to worry as there a bunch of loans that came in this way and Shellpoint 's system had no way catching up with the paperwork as it was a new type of loan that they hadn't come across before. He asked for more time so Shellpoint could figure out a way to update their system. I was told the letters were all being generated via computer, but he assured me there is no way they would foreclose as I was in compliance with the terms of my mortgage. 

At some point between XX/XX/19 and XX/XX/19, Shellpoint unilaterally removed funds they were holding in suspense ( illegally ) and applied it to the principal. My XX/XX/19 statement indicates an unapplied partial payment of {$410.00} was applied to principal. This should not have happened. I spoke to XXXX XXXX via telephone, who assured me that payment was made in error, and that one of their employees took it upon themselves unilaterally to remove it from suspended funds. He stated he didn't know why this person did that, but that they should never have done that. He was directed to reverse that payment and apply it to the escrow account, which he confirmed he would do, but never happened. Shellpoint is guilty of misappropriation of funds. 

This unilateral payment that was made illegally then brought my principal balance down to {$21.00}. Shellpoint has been advised several times this is incorrect, but has failed or refused to fix the issue to date. Shellpoint claims my escrow is negative over {$2000.00} ; however, {$670.00} of the funds they were holding in suspense was supposed to be applied to escrow, but never happened. I paid an additional {$900.00} or so towards escrow. Since I can't get a correct amount owed, and credits aren't being applied for my payments, I can only pay what was on my mortgage statement. I simply can not make heads or tails of what's happening or what, if any, monies are due and owing. Some of my documents say I owe thousands in mortgage payments. There is never any consistency in the letters I receive to determine any amount. 

Furthermore, Shellpoint has decided not to not abide by the mortgage and subsequent modification and deceptively try to force my hand into refinancing my mortgage. I've made my position clear with them that I am not in a position to refinance, and there are numerous billing errors, misappropriation of funds, and deceptive practices which they are partaking. This is harassing, a violation of my rights, and is causing significant stress and hardships upon a XXXX person, affecting my health significantly for the worse. Shellpoint is threating to foreclose on my home unless I refinance, stating that I basically have paid all but the last payment, and therefore, they consider the first mortgage paid in full. However, I could find no verbiage in my mortgage or modification to state the balloon payment will be due if I pay " most '' of the mortgage. And there certainly is no definitive definition regarding the interest-bearing portion other than to say all of the interest-bearing portion plus any late fees, assessments, and other charges. No where is this defined as " most, '' the " majority '' or any other willy-nilly random amount. It states all. 

I can only go by what my mortgage statements tell me to pay, which is zero if you discount the erroneous late charges, foreclosure fees, and property inspection fees, which Shellpoint has acknowledged on many occasions should not be on my account.

Please investigate the deceptive practices Shellpoint is  employing. Certainly there billing accounts are inaccurate and in violation.