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

Complaint narrative:
You'll have to review the screenshots. 

https : XXXX First thing from XXXX is shellpoint is misapplying our P & I payments. Instead of processing them please see our payments. They refuse to process our payment and place them in a " other '' payment and then charge a late fee illegally. This is exactly what XXXX is saying is illegal practices. 

-- Note we paid .25 % not to escrow on our closing. 

1. First, from our payments, we never EVER missed a mortgage payment. Shellpoint made a mistake and didn't process our change of insurance till after the 4th attempt. We had state farm try and they also use a 3rd party website we had to upload. 

2. Due to the fact they messed up there was a second mistake at our closing about a {$1700.00} local tax bill that we paid but didn't get submitted. Due to that fact Shellpoint increase our escrow over XXXX which wasn't even close to correct over a {$1700.00} mistake. ( screenshot attached ). How they get XXXX from {$1700.00} is crazy. 

- On XX/XX/XXXX we repaid the mistake about the escrow and also paid XXXX taxes. Therefore escrow was taken care of. 

- Shellpoint continued to overcharge XXXX of escrow for {$1700.00} ( attached was paid bill ). 

XXXX {$8000.00} we paid our mortgage payment XXXX {$8000.00} we paid our mortgage payment XXXX {$11000.00} we paid our mortgage payment XXXX paid part of their incorrect escrow payment. You can see XXXX - XXXX not only paid for XXXX taxes ( which we already paid for ) but over paid for it. They were over charging us What shellpoint does illegal. Is when you make a payment for principle and interest they misapply it to a category " Unapplied payment ''. This is in direct violation to CFPB rules. 

See below " unapplied payment '' even though we called in to make our principle and interest payment. They refuse to apply it correctly. 

XXXX {$11000.00} XX/XX/XXXX Unapplied Payment They knew what this payment was for yet purposely apply it incorrectly to charge a late fee. 

https : //www.eplaw.us/practice-areas/consumer-credit-and-debt/illegal-mortgage-late-fees/ has more information on how this is an illegal act. 

-Shellpoint started charging late fees and interest on escrow payments. They created a late fee by misapplying a payment and reported it late. 

Its easier to see from our print off what they are doing is. 

XX/XX/XXXX - {$400.00} XX/XX/XXXX Late Charge Assess {$00.00} {$00.00} {$00.00} XX/XX/XXXX {$11000.00} XX/XX/XXXX Unapplied Payment {$00.00} {$00.00} {$00.00} {$00.00} {>= $1,000,000} - {$3900.00} XX/XX/XXXX {$6800.00} XX/XX/XXXX Insurance Refund {$00.00} {$00.00} {$6800.00} {$00.00} {>= $1,000,000} - {$3900.00} XX/XX/XXXX {$8000.00} XX/XX/XXXX Regular Payment {$890.00} {$7100.00} {$00.00} {$00.00} {>= $1,000,000} - {$10000.00} XX/XX/XXXX - {$6800.00} XX/XX/XXXX Insurance Premium Disbursement {$00.00} {$00.00} - {$6800.00} {$00.00} {>= $1,000,000} - {$10000.00} XX/XX/XXXX - {$3900.00} XX/XX/XXXX Tax Bill 1 Disbursement {$00.00} {$00.00} - {$3900.00} {$00.00} {>= $1,000,000} - {$3900.00} - {$400.00} -- This is the worst part XX/XX/XXXX {$1200.00} XX/XX/XXXX Unapplied Payment XX/XX/XXXX - {$400.00} XX/XX/XXXX Late Charge Assess {$00.00} {$00.00} {$00.00} - {$400.00} XX/XX/XXXX - {$1200.00} XX/XX/XXXX Surplus Disbursement {$00.00} {$00.00} - {$1200.00} {$00.00} XX/XX/XXXX {$13000.00} XX/XX/XXXX Regular Payment {$900.00} {$7100.00} {$5100.00} {$00.00} XX/XX/XXXX - {$13000.00} XX/XX/XXXX Unapplied Payment {$00.00} {$00.00} {$00.00} {$00.00} XX/XX/XXXX {$8000.00} XX/XX/XXXX Unapplied Payment {$00.00} {$00.00} {$00.00} {$00.00} on XXXX we paid our p & i. You can see they purposely mis applied the payment in " unapplied status '' so they can charge a late fee. 

on XXXX they fixed their problem of overcharging us on XX/XX/XXXX they sent us back XXXX incorrectly because they still don't know how to correctly apply escow. 

on XX/XX/XXXX they charged a late fee on sending us BACK escrow. 

On XX/XX/XXXX they forced us to pay them back for their mistake WHILE charging us a late fee and reporting a late fee to the credit agency. 

RECAP - WE NEVER MISSED a P & I payment. NEVER. 
As you can see. Shellpoint A. messed up our escrow {$1700.00} vs XXXX XXXX charged late fees and interested on escrow amounts which is illegal. 
C. Messed up a 3rd time and sent us out a rebate escrow check. 
D. THEN Forced us to pay back their mistake WHILE charging a second late fee. 

Sites that show what they are doing is illegal which we reached out to https : XXXX XXXXXXXX XXXX XXXX Shellpoint in purposely misapplying P $ I payments to charge late fees and report the credit companies. This is an illegal act. 

On top they are charging interest, late fees on escrow payments. Escrow payments

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