Consumer complaint received 2025-08-08 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Shellpoint Partners, LLC
State: OH

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Date : XX/XX/year> TO : Shellpoint Mortgage Servicing XXXX XXXX XXXX XXXXXXXX, SC XXXX Subject : Formal Complaint Mishandling of Insurance Proceeds and Obstruction of Repairs Property Address : XXXX XXXX XXXX XXXX XXXX, OH XXXX Loan Number : XXXX Dear Shellpoint Mortgage Servicing, I am writing to formally dispute your handling of an insurance claim disbursement related to a property loss that occurred on XX/XX/year>, at my residence. I am also submitting this letter as part of a formal complaint to the Consumer Financial Protection Bureau ( CFPB ). 

Background : I am a recorded co-owner of the property XXXX XXXX XXXX XXXX XXXX XXXX. XXXX ) and a named insured on the XXXX XXXX policy. 
I refinanced the property into my name alone on XX/XX/year>, in compliance with a court-ordered divorce decree ( XXXX XXXX. XXXX ), which awarded me the home. Title transfer has been delayed solely because my ex-spouses attorney failed to file the decree by the court-mandated deadline of XX/XX/year>. 
Despite repeated payoff requests from my new lender over a XXXX period, Shellpoint has XXXX or failed to provide final payoff information, obstructing title transfer and compliance with both the court order and my current mortgage. 
The total insurance-covered damage exceeds {$80000.00}, and no repairs have commenced as a direct result of these delays. 

Claim Mishandling : XXXX XXXX issued a claim check for {$44000.00} ( based on a {$46000.00} estimate, less a {$2500.00} deductible ), made payable to : o XXXX XXXX XXXX ( myself ) o XXXX XXXX XXXX ( ex-spouse ) o Shellpoint Mortgage Servicing The original repair estimate was submitted to Shellpoints loss portal and included the following provision : Insurance disbursements XXXX be assigned directly to XXXX LIMITED upon agreement. 
All required claim documentation was submitted to Shellpoint prior to issuance of the check by XXXX XXXX, including : o The signed XXXX proposal o The Shellpoint Loss Draft Claim Form o A full itemized estimate Both XXXX and I endorsed the check and mailed it to Shellpoint via XXXX Mail. XXXX tracking shows that Shellpoint received the check on XX/XX/year>. However, Shellpoint staff repeatedly stated that it could not be located and treated it as missing for approximately XXXX weeks, contributing to a total delay of nearly 30 days before any funds were disbursed despite having all documentation in hand. 
Shellpoint eventually reissued a check for {$40000.00} payable only to XXXX XXXX XXXX, even though he is not the sole borrower and remains on the mortgage only because Shellpoint has delayed the refinance payoff and blocked title transfer. 

Policy Inconsistency and Delay : According to Shellpoints own Loss Draft Claim Procedure dated XX/XX/year>, claim funds over {$40000.00} must be held in restricted escrow and disbursed only in draws based on work progress and inspection. 
Shellpoint initially complied by escrowing the check, but then : o Released {$40000.00} directly to XXXX XXXX XXXX, bypassing draw-release protocol o Excluded me and the assigned XXXX, XXXX XXXX XXXX from the disbursement process o Continues to withhold the remaining {$4100.00} citing inspection requirements despite having ignored those same requirements for the initial, larger disbursement This demonstrates a double standard and inconsistent policy enforcement that has : Prevented essential repairs from beginning Delayed the lawful transfer of title Obstructed compliance with my divorce decree and refinance conditions Created financial hardship and risk of noncompliance with my new lender I am requesting the following : XXXX. A full written explanation for the XXXX delay and for reissuing funds to XXXX XXXX XXXX only XXXX. A copy of the {$40000.00} check, front and back XXXX. A status update on the withheld {$4100.00} and the timeline for its release XXXX. Written assurance that no further disbursements will be made without my express authorization and XXXX engagement XXXX. A remediation plan to correct Shellpoints improper handling of this claim and to ensure restoration funds are released for their intended purpose I reserve all legal rights to pursue recovery in XXXX XXXX XXXX XXXX XXXX and through civil and regulatory channels. This letter also forms part of my official complaint with the Consumer Financial Protection Bureau, under potential violations of RESPA, loss draft servicing guidelines, and XXXX. 
Sincerely, XXXX XXXX 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