Consumer complaint received 2022-07-15
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC (LA)

Our firm sent a Notice of Error under 12 C.F.R. 1024.35 to Shellpoint Mortgage Servicing via certified mail on XX/XX/XXXX. The notice of error was sent in regards to the misapplication of a payment the firm had sent to Shellpoint to reinstate the client 's loan. The total amount to reinstate the loan had been given to our firm by the attorneys assigned to pursue a foreclosure action on behalf of Shellpoint against our client. The reinstatement letter was emailed to our firm on XX/XX/XXXX in response to our request, which had been submitted to the attorneys representing Shellpoint on XX/XX/XXXX. The reinstatement reported the total amount due to reinstate the client 's mortgage loan was {$23000.00}. Further, the attorneys ' office included language within the reinstatement quote that stated the amount was good through XX/XX/XXXX. Our firm contacted both Shellpoint and its attorneys on XX/XX/XXXX to confirm that we would be sending two ( 2 ) payments to satisfy the reinstatement amount, which both parties agreed would be sufficient to satisfy the full amount due on the client 's account. Our firm remitted a wire payment in the amount of {$22000.00} to Shellpoint. Additionally, our firm submitted a cashier 's check from the client in the amount of {$1500.00} to Shellpoint 's attorneys. Both payments, when added together, totaled the full amount to reinstate the loan. Both payments were confirmed as received by both parties on XX/XX/XXXX. 

The following week, after confirming receipt of the payment in full, Shellpoint sent a status letter to our client stating there was a remaining balance due on the mortgage account which consisted of two payments : a. {$1200.00} in " other fees '' ; and, b. {$270.00} in " legal fees ''. 
Additionally, on XX/XX/XXXX, our office received the cashier 's check in the amount of {$1500.00} from the attorneys representing Shellpoint in its foreclosure action against our client along with a letter. On XX/XX/XXXX, the Financial Administrative Assistant in our unit contacted Shellpoint 's attorneys to inquire as to the reason why the check was sent back to our firm. Shellpoint 's attorneys restated the contents of the letter they had sent along with the client 's cashier 's check. Shellpoint 's attorneys informed us that when they received the cashier 's check, they called Shellpoint to confirm and submit it to them to complete the full reinstatement amount. According to Shellpoint 's attorneys, Shellpoint then informed its attorneys that it had already received the full amount due to reinstate the loan and that no additional amounts were due on the account. Upon asking Shellpoint what to do with the cashier 's check, it told the attorneys to return the check to the client as there was no remaining balance on the account. 

On XX/XX/XXXX, our Financial Administrative Assistant called and spoke with a Shellpoint representative about the origination of the remaining balance due on the client 's account for " legal fees '' and " other fees ''. Shellpoint 's representative stated that the {$1200.00} in " other fees '' was attached to a loan modification that had been applied for by the client. Our client has never applied for a loan modification for his mortgage account with Shellpoint. The Shellpoint representative offered to connect our firm with the loan modification department who also reported that it could not find any loan modification on the client 's account nor a reason why any fees associated with one would be applied. 

On XX/XX/XXXX, our firm contacted Shellpoint to follow up on the Notice of Error that was sent on XX/XX/XXXX. I was transferred to several different departments and then disconnected. On XX/XX/XXXX, I, again, contacted Shellpoint via telephone to follow up on the notice of error. I was transferred to several departments and then the line disconnected. On XX/XX/XXXX, I sent an email to the point of contact listed on the client 's account stating that I had not received a response on the notice of error sent on XX/XX/XXXX. I did not receive a response. On XX/XX/XXXX, I attempted to call the single point of contact via telephone. She did not answer, so I left a VM asking her to return my call. Later on XX/XX/XXXX, I attempted to contact the single point of contact again. The single point of contact answered the call and once I gave her our client 's information asked me if I would be okay with a call back if we were disconnected. The single point of contact stated the notice of error had been received ; however, when I inquired about the lack of response to the notice of error she stated that she needed to place me on a brief hold to get that information. Shortly thereafter, I was disconnected again. On XX/XX/XXXX, I attempted to contact the single point of contact several times with no answer. I left several voicemails and sent an email with no reply or callbacks. On XX/XX/XXXX, after several failed attempts at reaching the single point of contact on the client 's account, I contacted Shellpoint 's general customer service line to speak with a rep in an attempt to get some kind of response. The rep stated that she would let the single point of contact know that I had been trying to get in contact with her and that she would call me back in 24 hours. Later, that same day, the single point of contact reached out to me via telephone, put me on hold, and then disconnected the line. On XX/XX/XXXX, I again tried to contact Shellpoint and asked a representative to check on the status of a response to our notice of error. The rep placed me on a hold and I was disconnected once again. 

To this date ( XX/XX/XXXX ) our office has not been able to get any information via telephone or email to Shellpoint, nor have we received any response explaining the additional fees charged on the client 's account after Shellpoint reported to its own attorneys that the client 's account had been satisfied in full.