Consumer complaint received 2025-10-24 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: VA

Complaint narrative:
FEDERAL COURT PRECEDENT VIOLATION - WRONGFUL WITHHOLDING OF INSURANCE PROCEEDS CRITICAL : Shellpoint is repeating the exact conduct for which a federal bankruptcy judge held them in CONTEMPT just 6 months ago in In re XXXX XXXX XXXX, Case No. XXXX ( XXXX. XXXX. XXXX, XXXX entered XX/XX/XXXX ). 

CASE INFORMATION : Total Wrongfully Withheld : {$41000.00} Days of Upper Management Awareness : 136 days ( since XX/XX/XXXX ) Total Days of Withholding : 216 days ( since XX/XX/XXXX ) FACTUAL TIMELINE : XX/XX/XXXX : Water damage loss at property XXXX XXXXXXXX : Emergency mitigation and repairs completed XX/XX/XXXX : All contractors paid, all work completed, all documentation provided to Shellpoint XX/XX/XXXX : Sent " URGENT ESCALATION - Request for Upper Management Review and Immediate Action '' to Shellpoint executive leadership documenting wrongful withholding XXXX XXXX : Multiple demands for release, all ignored XX/XX/XXXX : Sent advance notice of formal legal demand via email to compliance, legal, executive office, and XXXX  XX/XX/XXXX : Sent formal legal demand via Priority Express ( Saturday delivery ) and Certified Mail requiring release within 72 hours XX/XX/XXXX : Shellpoint missed 72-hour deadline INSURANCE PAYMENT DETAILS : - XXXX XXXX  paid Shellpoint : {$53000.00} ( total insurance proceeds ) - Shellpoint paid contractor : {$12000.00} ( mitigation work ) - Shellpoint currently withholding : {$41000.00} ( for 216 days ) BREAKDOWN OF WITHHELD FUNDS : - {$20000.00} : Balance owed to XXXX for structural repairs ( withheld 195 days, preventing repairs from starting ) - {$7200.00} : Remaining insurance proceeds owed to borrower - {$13000.00} : Penalties for wrongful withholding ( $ XXXX 136 days per federal court precedent ) DOCUMENTATION PROVIDED TO SHELLPOINT : Contractor completion certificates Paid invoices and receipts Lien waivers from all contractors Proof all work completed XX/XX/XXXX Multiple written demands for release No outstanding liens or claims FEDERAL COURT PRECEDENT - IN RE XXXX XXXX XXXX : In XX/XX/XXXX, XXXX Bankruptcy XXXX XXXX XXXX XXXX held Shellpoint in CONTEMPT and imposed XXXX XXXX penalties for the IDENTICAL conduct Shellpoint is engaging in with me : XXXX Case Facts ( XX/XX/XXXX ) : - Shellpoint received insurance checks on behalf of borrower - Shellpoint deposited the checks - Shellpoint refused to release funds to allow repairs - Shellpoint ignored borrower 's demands for months - Shellpoint forced borrower to live in damaged home My Case Facts ( XXXX ) : - Shellpoint received insurance proceeds ( {$53000.00} ) - Shellpoint deposited the proceeds - Shellpoint refusing to release {$41000.00} despite completed repairs - Shellpoint ignoring my demands since XX/XX/XXXX ( 136 days ) - Shellpoint forcing me to live in damaged home for 7 months REPEAT OFFENDER STATUS : The XXXX contempt order was entered XX/XX/XXXX. 

I notified Shellpoint of the withholding issue XX/XX/XXXX - only XXXX MONTH after the federal court sanctioned them. 

This means Shellpoint : - KNEW this conduct was illegal ( federal court told them ) - Did it ANYWAY with me- Is a repeat offender - Warrants enhanced penalties LEGAL VIOLATIONS : 1. RESPA Section 10 ( Escrow Account Analysis ) - Wrongful retention of completed repair funds - No legal basis to withhold 2. Virginia Code 55.1-339 - Improper escrow withholding - Statutory penalties authorized 3. Federal Court Order Violation - Repeating sanctioned conduct from XXXX case - Willful violation after being held in contempt 4. Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) - Systematic pattern of illegal withholding - Demonstrated by XXXX case plus my case HARM TO BORROWER : - Unable to complete structural repairs for 195 days ( 6.5 months ) - Living in home with unrepaired water damage - Health and safety risks from incomplete repairs - Financial harm from delayed repairs - Emotional XXXX from prolonged displacement issues- Forced to send legal demand to obtain funds that are legally owed PATTERN AND PRACTICE : The XXXX case ( XX/XX/XXXX ) plus my case ( XXXX XXXX ) establishes Shellpoint has a CORPORATE POLICY of : - Receiving insurance proceeds on behalf of borrowers - Depositing those proceeds - Refusing to release them despite completed repairs - Ignoring borrower demands- Forcing borrowers into legal action - Only releasing after court intervention This pattern continued AFTER federal court sanctions, proving systematic corporate misconduct.

DEMAND FOR RELIEF : 1. IMMEDIATE release of {$27000.00} in insurance proceeds 2. Payment of {$13000.00} in penalties ( $ XXXX 136 days per XXXX precedent ) 3. Investigation of Shellpoint 's pattern and practice of wrongful withholding 4. Corporate-wide policy review and corrective action 5. Monitoring to ensure compliance with XXXX court order 6. Public accountability for repeat violations of federal court orders SUPPORTING DOCUMENTS TO BE ATTACHED : - Formal demand letter dated XX/XX/XXXX - Email advance notice dated XX/XX/XXXX - Contractor completion certificates- Paid invoices and lien waivers - Escalation emails to Shellpoint executive leadership - Documentation of 136 plus days of ignored demands URGENCY : Shellpoint has already missed the 72-hour deadline in my formal legal demand ( XX/XX/XXXX, XXXX XXXX XXXXEvery additional day increases : - Penalties by $ XXXX - My damages - Shellpoint 's exposure - Risk to my health and safety I request IMMEDIATE CFPB intervention to compel Shellpoint to : 1. Release the wrongfully withheld {$41000.00} 2. Cease pattern of illegal withholding demonstrated by repeat violations 3. Face appropriate regulatory consequences for violating federal court orders This is not an isolated incident. This is a documented PATTERN of illegal conduct that continued AFTER federal court sanctions. Shellpoint requires immediate regulatory intervention and oversight.

I am available to provide any additional documentation or information required.

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