Consumer complaint received 2025-11-07 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
Complaint Narrative Payment Misapplication and XXXX XXXX XXXX NewRez LLC / Shellpoint Mortgage Servicing ) On XX/XX/XXXX, a full regular mortgage payment of {$3900.00} was drafted from my checking account for Loan # XXXX. This payment was properly confirmed in XXXX servicing portal showing : Last payment : {$3900.00} Received XX/XX/XXXX Total payments : {$9000.00} Next due date : XX/XX/XXXX. 

That screen clearly verified that my XX/XX/XXXX installment was prepaid. 

On XX/XX/XXXX, Shellpoint accepted an additional {$750.00} payment, applied to escrow/interest. At that point, the portal again confirmed my due date as XX/XX/XXXX, and my account showed no past-due amounts. 

However, by XX/XX/XXXX, the portal ledger suddenly changed : Unapplied Balance : {$0.00} Late Charges Balance : {$1000.00} Next Coupon Date : XX/XX/XXXX. 

The earlier {$3900.00} payment was effectively erased or reclassified, and my account was reported as due for XX/XX/XXXX despite prior confirmation that it was already satisfied. 

This constitutes a payment-crediting violation under : 12 C.F.R. 1026.36 ( c ) ( 1 ) ( i ) Failure to credit payments as of the date received.

12 C.F.R. 1024.35 ( b ) ( 1 ) Failure to properly apply periodic payments. 

Shellpoint and its parent NewRez LLC ( XXXX XXXX XXXX ) have repeatedly used unapplied and reversed transactions to fabricate delinquency status, creating false late fees and misrepresenting escrow shortages. My call recordings from XX/XX/XXXX, and XXXX confirm that representatives acknowledged duplicate funds and stated that {$8000.00} would be applied toward XXXX and XXXX payments with a {$4000.00} refund check to be issued within 10 days. That refund was never issued, and the extra payment vanished from the ledger. 

I am submitting screenshots showing : XX/XX/XXXX portal confirming payment due XX/XX/XXXX. 
XX/XX/XXXX portal showing payment removed and late charges added. 
Matching NewRez and Shellpoint pages reflecting the same principal balance ( {$580000.00} ). 

Requested Resolution : Immediate correction of the account to reflect payments through XX/XX/XXXX as current. 
Full refund or credit of the missing {$3900.00} and all related late fees. 
Written confirmation of compliance with Reg Z 1026.36 ( c ) and RESPA 1024.35 ( b ).

Copy of complete payment application ledger for audit. 

This pattern mirrors systemic misapplication practices already under review by the XXXX  XXXX  XXXX XXXX XXXX ( XXXX XXXX correspondence XX/XX/XXXX ) and should be treated as part of a broader servicing-conduct investigation. 


CFPB Complaint Narrative ( Follow-Up Submission ) Category : Mortgage Servicing / Payment Processing / Misapplication Company : NewRez LLC XXXX Shellpoint Mortgage Servicing Product : VA Mortgage What happened : This is a supplemental complaint expanding on my prior CFPB filings against NewRez LLC / Shellpoint Mortgage Servicing XXXX It documents the servicers failure to respond to a formal regulatory demand, continued payment misapplication, and false delinquency reporting following multiple acknowledged transactions. 

On XX/XX/XXXX, I issued a Final Demand for Correction, Restitution, and Damages to NewRez and XXXX XXXX XXXX  ( cc : CFPB XXXX, DOJ XXXX XXXX, DOJ XXXX XXXX, FTC, and Tennessee Department XXXX XXXX XXXX ). This demand was properly distributed to federal and state agencies and included forensic evidence showing unapplied payments and duplicate postings. 

Despite this, no written acknowledgment or substantive response has been received within the XXXX business days required under 12 C.F.R. 1024.35 ( e ) ( 3 ) ( i ). Instead, a generic customer service template letter was issued without addressing any specific issue or evidence. 

The companys own records and screenshots show : A {$3900.00} payment received XX/XX/XXXX, confirmed online as applied toward the XX/XX/XXXX due date. 
The following day ( XX/XX/XXXX ) an additional {$750.00} payment was processed, bringing the account fully current. 
By XX/XX/XXXX, Shellpoint altered its online portal to remove the XX/XX/XXXX payment, reset the due date to XX/XX/XXXX, and added {$1000.00} in late charges, effectively fabricating a delinquency. 

This manipulation of payment records violates multiple consumer protection regulations, including : 12 C.F.R. 1026.36 ( c ) ( 1 ) ( i ) Failure to credit payments as of the date received.

12 C.F.R. 1024.35 ( b ) ( 1 ) Failure to properly apply periodic payments.

12 C.F.R. 1024.35 ( e ) ( 3 ) ( i ) Failure to acknowledge written notice of error within five days.

12 C.F.R. 1024.35 ( e ) ( 1 ) ( i ) Failure to correct or provide written explanation within thirty days.

The servicers continued silence following federal notice now establishes willful noncompliance, not administrative oversight. This conduct directly affects credit reporting, escrow accounting, and the borrowers contractual rights. 

Supporting Evidence ( attached or referenced ) : Exhibit A Email sent XX/XX/XXXX, Final Demand for Correction, Restitution, and Damages, showing delivery to NewRez, Shellpoint, CFPB, DOJ, FTC, and congressional offices. 
Exhibit B Screenshots from XX/XX/XXXX and XXXX showing payment receipt, confirmation, and subsequent deletion of applied funds. 
Exhibit C Copy of XXXX form-letter response lacking acknowledgment of the underlying regulatory notice.

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