Consumer complaint received 2025-01-17 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
My complaint goes well beyond the usual inefficiencies and mismanagement commonly associated with large mortgage companies when it comes to handling and processing insurance and property tax escrow accounts. What I am experiencing with Shellpoint goes beyond what could be considered ordinary errors or incompetenceit now feels deliberate and bordering on fraudulent practices. The ongoing issues I have faced suggest a level of negligence or intentional misconduct that is both unacceptable and deeply troubling. This has caused significant frustration and a lack of trust in Shellpoints ability to operate in good faith or meet the basic standards of fairness and transparency expected in such matters. 

Letter to Shellpoint Mortgage Servicing : XX/XX/XXXXXXXX XXXX XXXXXXXX Head of Servicing Shellpoint Mortgage Servicing XXXX XXXX XXXX, XXXX XXXX XXXX, South Carolina XXXX Subject : Formal Complaint and Request for Full Account Audit - XXXX Dear XXXX XXXX, I am writing to formally address significant issues with the servicing of my mortgage account and the persistent lack of resolution despite numerous attempts to obtain clarity and correction from your team. The issues described below have caused extensive frustration and stress, and I am requesting an immediate and thorough audit of my account to resolve these discrepancies. 
Between XX/XX/XXXX, and XX/XX/XXXX, we overpaid our account with a {$5400.00} monthly automated payment. However, beginning XX/XX/XXXX, these payments were incorrectly applied as " Principal Only Payments '' or " Unapplied Payments, '' allegedly due to an escrow adjustment that increased the monthly payment to {$5800.00}. This adjustment was incorrect, as we already had full coverage with XXXX XXXX, which was confirmed via a fax from XXXX XXXX to Shellpoint. Although the force-placed insurance was eventually removed, the payment amounts were never corrected. 
Since that time, our account has never been properly reconciled. Regular payments have been misapplied or partially applied, and no one at Shellpoint Mortgage has been able to provide a clear explanation despite at least 10 phone calls seeking clarification. On XX/XX/XXXX, during one of my calls to Shellpoint, your representative incorrectly told me that we were paid ahead through XX/XX/XXXX. This inconsistency must be addressedplease review the recording of this call for reference. 
At no time did we authorize any payments to be applied to the principal. The continued mishandling of payments has created an ongoing issue, and I demand a full and detailed audit of my account to address these discrepancies. Additionally, I will be filing a formal complaint with the Consumer Financial Protection Bureau regarding these issues. 
Regarding the late fee of {$190.00} assessed on XX/XX/XXXX, this fee is completely unwarranted for the following reasons : 1. A payment of {$6300.00} was made on XX/XX/XXXX, via phone to Shellpoint Mortgage representative XXXX XXXX ( reference number # XXXX ), which made the account fully current and paid through XX/XX/XXXX. 
2. Upon reviewing Shellpoints system, it was discovered by chance that {$5400.00} was still on hold. Due to our lack of confidence in Shellpoints handling of payments, another ACH payment of {$6300.00} was made on XX/XX/XXXXXXXX  ( reference number # XXXX ) to ensure the account remained current. 
Given these circumstances, the late fee is both incorrect and unjustified. Additionally, these repeated issues highlight significant systemic and procedural flaws in your payment processing and customer service operations. 
To resolve this matter, I am requesting the following actions : 1. A full audit of my account from XX/XX/XXXX, to the present, with detailed explanations of how payments were applied. 
2. Immediate correction of all misapplied or unapplied payments to reflect accurate account status. 
3. Waiver and removal of the {$190.00} late fee, as the account has been consistently current and overpaid. 
4. I kindly request confirmation that I have not been reported as 30 days late to any of the credit bureaus, as I have consistently made all required principal and interest mortgage payments in full and on time. Any discrepancies with my account are the result of issues in how payments were applied to the tax and insurance impound accounts and reconciled by Shellpoint, rather than any oversight or failure on my part. If any inaccurate reports have been made to the credit bureaus, I trust that your organization will take immediate steps to correct them and address any resulting impacts. I look forward to your prompt response on this matter. 
5. A formal response with a timeline for resolution and an explanation of the steps Shellpoint Mortgage will take to ensure these issues do not recur. 
6. I have faxed and sent a certified mail request to remove the tax and insurance impound from this account immediately. 
I trust that as Head of Servicing, you recognize the importance of resolving these issues promptly and restoring confidence in your organizations ability to manage customer accounts accurately. I expect a response acknowledging this complaint and outlining next steps within 10 business days. You may contact me via email at the address provided above if further details are required. 
Thank you for your immediate attention to this matter. 
Sincerely, XXXX XXXX

Company public response: Company believes complaint represents an opportunity for improvement to better serve consumers
Company response to consumer: Closed with explanation