Consumer complaint received 2026-05-07 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
This complaint involves two unresolved servicing problems. First, Shellpoint has failed to properly handle the escrow account. In XX/XX/XXXX, Shellpoint completed a loan modification that placed the loan into escrow. The agreement requires Shellpoint to handle escrow items, including property taxes and insurance. Shellpoint already failed to pay the homeowners insurance when due, then corrected it only after repeated calls. We have now received notice that the property taxes were also not paid. Shellpoints escrow department has repeatedly stated that the loan is not an escrow account, even though the modification agreement says otherwise. Shellpoint is now supposedly investigating, but the property taxes still need to be paid and the escrow setup corrected. Second, Shellpoint has reported inaccurate mortgage information to XXXX, XXXX, and XXXX. The loan was in an approved XXXX XXXX forbearance from XX/XX/XXXX through XX/XX/XXXX. XXXX XXXX transferred the loan to Shellpoint during that period. After the forbearance ended, XXXX resumed making regular payments beginning in XX/XX/XXXX while Shellpoint processed a loan modification. Shellpoints own payment history shows those payments. However, Shellpoint failed to report the XXXX through XX/XX/XXXX payments and then reported the loan as severely late in XX/XX/XXXX with a past due balance. That reporting is inaccurate and incomplete. Requested resolution : 1. Pay the outstanding property taxes immediately. 2. Correct the escrow setup so future taxes and insurance are paid properly. 3. Correct the mortgage reporting with XXXX, XXXX, and XXXX. 4. Remove the inaccurate XX/XX/XXXX late status and past due amount. 5. Correct the XXXX through XX/XX/XXXX payment history to reflect payments received. 6. Provide written confirmation when these corrections are complete. Below is a full description of our experience : In XXXX, my elderly mother entered into a XXXX XXXX forbearance so she could manage cash flow while taking care of timely and necessary home maintenance. That forbearance began XX/XX/XXXX and was scheduled to end XX/XX/XXXX, with the expectation that payments would resume in XX/XX/XXXX or that another modification would be completed. In XX/XX/XXXX, XXXX XXXX transferred the loan to Shellpoint. Shellpoint said it received the transfer paperwork, but claimed it did not receive the XXXX XXXX forbearance documentation. Because of that, Shellpoint demanded full payment of the amount it believed was past due. We explained that the loan had been in an approved XXXX XXXX forbearance and that payments were expected to resume in XX/XX/XXXX. Shellpoint then said it would work on a loan modification. My mother resumed making her regular mortgage payments in XX/XX/XXXX while Shellpoint processed the modification. In spring XXXX, Shellpoint offered a modification that appeared acceptable and we were ready to proceed. Shellpoint then canceled it because the property was held in a trust, which they had not properly addressed. They had not asked us to clarify the trust issue before preparing that modification. After more calls, Shellpoint restarted the modification process to correct the trust/title issue. During the second modification process, Shellpoint converted the loan into an escrowed loan. We agreed to that. In XX/XX/XXXX, Shellpoint placed the loan into the escrow structure and my mother began paying the increased mortgage payment. The modification agreement states that Shellpoint is responsible for paying both homeowners insurance and property taxes through escrow. Since then, Shellpoint has repeatedly mishandled the escrow account. Homeowners insurance was due in XX/XX/XXXX. In XX/XX/XXXX, we received notice that Shellpoint had not paid it. When we contacted Shellpoint, one department said the loan was not escrowed. Another department said it was escrowed, but only for property taxes. We explained that the modification agreement required Shellpoint to pay both insurance and taxes. About a week later, Shellpoint corrected the issue and paid the insurance. At the end of XX/XX/XXXX, we received another notice stating that the property taxes had not been paid. We contacted Shellpoint again. The escrow department said the loan was not an escrow account. Customer service also initially said it was not an escrow account. We then had to request an investigation and ask Shellpoint to review the actual modification agreement. Shellpoint eventually confirmed that the agreement does require escrow handling, but they have not yet explained why the escrow department does not recognize the loan as escrowed or why Shellpoint stopped collecting the property-tax portion in XX/XX/XXXX after performing an escrow analysis and lowering the payment. Shellpoint is currently investigating the escrow setup so this can be corrected going forward. Separately, Shellpoints credit reporting appears inaccurate. Although my mother resumed payments in XX/XX/XXXX, Shellpoint did not report those payment months. XX/XX/XXXX was the first month in XXXX that Shellpoint reported to the credit bureaus, and they reported the loan as more than 150 days late with a past-due amount. We dispute that reporting because the loan had been in an approved XXXX XXXX forbearance through XX/XX/XXXX, and my mother had been making payments since XX/XX/XXXX while Shellpoint processed the modification. We have disputed this with all three credit bureaus and added consumer statements where allowed. We are also sending Shellpoint a direct dispute with the XXXX XXXX forbearance letter, Shellpoint payment history, Shellpoint modification agreement, and relevant credit-report excerpts. The key point is that this has not been a simple borrower nonpayment situation. The issues appear to come from the loan transfer from XXXX XXXX to Shellpoint, Shellpoints failure to properly recognize the XXXX XXXX forbearance, Shellpoints delayed modification process, inaccurate credit reporting, and Shellpoints continuing escrow setup errors.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation