Consumer complaint received 2024-09-06 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Paying off the loan
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
Summary : I followed the instructions provided in the payoff letter & verbally, by the mortage servicing company, to payoff and close our XXXX loan. The payoff process began XX/XX/year>. Since then, I've paid more than was required in the payoff letter, Shellpoint lost the funds, didn't apply them, has not returned my over payment, is still charging me fees, and has not agreed to close the loan. 

The HELOC mortgage servicer changed from XXXX to ShellPoint during the payoff process which likely added to their errors. 

XXXX of events : Prior to XX/XX/XXXX XXXX to XXXX about process to payoff and close HELOC they said request payoff letter and follow instructions. XXXX closed and XXXX released. No early payoff charges. 

XX/XX/year> XXXX with XXXX Bank, we submitted a formal written notification to freeze HELOC for payoff. 

XX/XX/year> Payoff letter requested by me and provided by Shellpoint. Effective and Valid through XX/XX/year>. Amount due {$74000.00} XX/XX/year> Funds wired by XXXXXXXX XXXX amount sent {$75000.00}. XXXX to be released and transferred to XXXX Bank. 

XX/XX/year> Email received from Shellpoint confirming Congrats, you are paid in full! Unapplied over payments will be refunded, nothing further to do Well discharge the mortgage for your loan at XXXX XXXX recorders office.. 

XX/XX/year> I called Shellpoint to confirm the email I received - that the payment was received, and refund was to be issued, and loan closed and lien released. This was all confirmed by the representative. So at this point, I have verbal and written confirmation from Shellpoint. 

XX/XX/year> I received a phone call from Shellpoint stating that my loan is past due and I owe over $ XXXX. I immediately called back, first at XXXX where I was greeted by someone very rude, and who yelled at me. I hung up and called back and spoke to a very kind person at XXXX, call duration XXXX minutes. This person stated that she sees the misunderstanding and noted to my account, and all should be resolved. 

XX/XX/year> XXXX, call duration XXXX minutes. I reached out to Shellpoint again to confirm the resolution was in process. I had to re-explain the entire thing from the beginning. The person said that the funds had been returned because we didnt properly request a payoff letter, and that the HELOC be paid off. This is INCORRECT. 

XX/XX/year> I reached out to my lender at XXXX XXXX for help. They had no record of returned funds. My lender at XXXX told me to hold tight while they investigate. 

XX/XX/year> My lender at XXXX was able to get a Shellpoint agent on the phone together with me. The Shellpoint agent said I needed to submit a written letter to close the HELOC. In viewing the transaction log online together, suddenly all our funds show posting on XX/XX/XXXX and XX/XX/XXXX to our HELOC, but still showing the full principal balance due. Its an absolute mess. Shellpoint has had the funds this entire time and done nothing but charge us fees, time, and inflict stress. 

So I submit the letter and upload to their portal. We are told by Shellpoint this will close the matter. 

XX/XX/year> I call Shellpoint to confirm all is closed. I was on the phone for XXXX minutes, transferred to several different people. Finally someone stated they can not close the XXXX until XXXX of XXXX after the draw period, because thats their policy. 

XX/XX/year> I receive a letter from Shellpoint dated XX/XX/XXXX, stating that my HELOC is delinquent and has been suspended? 

XX/XX/year> I submitted a formal written complaint on their website, outlining events and requesting my refund of {$860.00}. 

XXXX, XXXX, 2024 I received a new bill from Shellpoint dated XXXX, stating that I owe {$270.00}

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