Consumer complaint received 2025-07-21 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
Subject : Mortgage Servicing Errors, Unauthorized Disbursement, Mishandling of Payoff Funds, and Failure to Communicate Request for Urgent CFPB Review Companies Involved : Primary Servicer : NewRez LLC ( Mortgage Servicer ) Escrow Company : XXXX XXXX XXXX XXXX : XXXX XXXX XXXX XXXX. 

Complaint Summary : I am submitting this complaint to report serious servicing errors committed by NewRez LLC during the payoff and refinancing process of my mortgage. These issues were made worse by NewRezs failure to communicate with relevant partiesincluding both XXXX XXXX and Sage Home Loans Corp.which resulted in unnecessary delays, improper interest charges, and the threat of negative credit reporting. 

Timeline and Issues : XX/XX/2025 : I requested an official payoff quote from NewRez. This quote excluded escrow disbursements, as I independently handle my property taxes and insurance. Additionally, the refinance included a homeowners insurance payment, which was confirmed by the title/escrow company. 

XX/XX/2025 : NewRez made an unauthorized disbursement of {$1100.00} to XXXX XXXX XXXX weeks early, despite the refinance covering that payment and no authorization from me. This error occurred after the payoff quote had been issued, creating an artificial shortfall in the final balance. 

XX/XX/2025 : {$680000.00} in refinance funds was wired to NewRez via XXXX XXXX full XXXX days before the XX/XX/XXXX payoff deadline. However, NewRez failed to apply the funds promptly and ultimately rejected them on XX/XX/XXXX due to the discrepancy caused by its own escrow disbursement error. 

Most concerning is that NewRez failed to notify either XXXX XXXX XXXX or myself about the issue with the wire. Over the phone, a NewRez representative claimed they had sent an email to XXXX generic address that is not the correct point of contact for escrow matters. This represents a complete failure to escalate or resolve a known issue that they caused. 

XX/XX/2025 : A NewRez representative acknowledged the disbursement to XXXX was made in error and said they would request a refund from the insurer. I was told to contact XXXX myself and warned that the second wire for the refinance payoff could be rejected if the refund wasnt processed quicklydespite the fact that the issue originated with NewRez. 

To prevent further delay, I paid the {$1100.00} shortfall out of pocket on XX/XX/XXXX, and even submitted a XXXX mortgage payment directly to NewRez, even though that months obligation had already been covered via refinance. These actions were taken in good faith, solely to avoid rejection of a second wire transfer. 

Despite my efforts, NewRez continued to delay resolution, failed to coordinate properly with escrow or the lender, and persisted in charging interest and threatening negative credit reportingeven though full payoff funds were received on XX/XX/XXXX.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation