Consumer complaint received 2021-06-08
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Shellpoint Partners, LLC (CA)

The NewRez loan servicer company that is part of Shell Point Mortgage, is a horribly run business without the ability for business units to speak to each other. While being bounced around between customer service, insurance, and escrow, I can see there is no congruity or ability to work together to resolve a customer 's needs and actually caused me many hours on the phone during my normal workday. I had to re-enter my personal information for each new department and any time someone said " let me connect you with them '' it was a blind call transfer which required more on hold time. They appear to have no way to escalate an issue to a reasonable altitude to resolve an issue and only have the different departments point a finger at each other. 

This experience started in XXXX when they picked up my re-fi and created an escrow account for flood insurance. After repeated requests between XX/XX/XXXX and XX/XX/XXXX, this company has ignored the exceptions built into the Homeowner Flood Insurance Affordability Act of XXXX. I've carried my insurance through the XXXX for 10 years now and I should be allowed to maintain that relationship instead of being forced to contribute to an escrow account that doubles the cost of my flood insurance. At the very least this company should be able to say, " if you submit proof of insurance, we will return your escrow to you in full '', but they don't appear to have the forethought or ability to perform this simple action. 

The removal request I sent in included the below text : 339.5 Escrow requirement. 
( a ) In general -- ( 1 ) Applicability. Except as provided in paragraphs ( a ) ( 2 ) or ( c ) of this section, an FDIC-supervised institution, or a servicer acting on its behalf, shall require the escrow of all premiums and fees for any flood insurance required under 339.3 ( a ) for any designated loan secured by residential improved real estate or a mobile home that is made, increased, extended, or renewed on or after XX/XX/XXXX, payable with the same frequency as payments on the designated loan are required to be made for the duration of the loan. 
( 2 ) Exceptions. Paragraph ( a ) ( 1 ) of this section does not apply if : ( i ) ... ...

( ii ) ... ...

( iii ) Flood insurance coverage for the residential improved real estate or mobile home is provided by a policy that : ( A ) Meets the requirements of 339.3 ( a ) ; 339.3 Requirement to purchase flood insurance where available.

( a ) In general. An FDIC-supervised institution shall not make, increase, extend, or renew any designated loan unless the building or mobile home and any personal property securing the loan is covered by flood insurance for the term of the loan. The amount of insurance must be at least equal to the lesser of the outstanding principal balance of the designated loan or the maximum limit of coverage available for the particular type of property under the Act. Flood insurance coverage under the Act is limited to the building or mobile home and any personal property that secures a loan and not the land itself.

( b ) ... ...

( c ) Private flood insurance -- ( 1 ) Mandatory acceptance. An FDIC-supervised institution must accept private flood insurance, as defined in 339.2, in satisfaction of the flood insurance purchase requirement in paragraph ( a ) of this section if the policy meets the requirements for coverage in paragraph ( a ) of this section.

339.2 Definitions.

Private flood insurance means an insurance policy that : ( 1 ) Is issued by an insurance company that is : ( i ) Licensed, admitted, or otherwise approved to engage in the business of insurance by the insurance regulator of the State or jurisdiction in which the property to be insured is located ;