Consumer complaint received 2025-11-19 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
IMMINENT HARM CFPB COMPLAINT WILLFUL REFUSAL TO COOPERATE WITH STATE AG & CONTINUING HARM Company : NewRez LLC ( d/b/a Shellpoint Mortgage Servicing ), owned by XXXX XXXX XXXX XXXX 
Product : Mortgage ( VA-backed home loan ) Issue : Trouble during payment process / improper servicing / refusal to correct errors / obstruction of state-AG mediation 1. What happened I filed a detailed consumer complaint with the Pennsylvania Office of Attorney General, XXXX XXXX XXXX XXXX ( XXXX ) against NewRez LLC d/b/a Shellpoint Mortgage Servicing concerning corrupted loan data, misapplied / unapplied payments, negative escrow, and foreclosure risk on my VA-backed mortgage. 
On [ email date ], I received the attached email from XXXX XXXX, XXXX XXXX XXXX, Pennsylvania OAG XXXX, regarding Complaint No. XXXX. 
The email states that the XXXX XXXX XXXX XXXX : attempted to resolve your complaint against NewRez LLC ( d/b/a Shellpoint Mortgage Servicing ) through a voluntary mediation process, but we have not been able to resolve this matter to your satisfaction and have reached an impasse between you and NewRez LLC ( d/b/a Shellpoint Mortgage Servicing ), and we will take no further action on your complaint at this time.

The email also confirms : A copy of your complaint will remain on file for future reference and for possible use in an investigation or enforcement action we may bring to protect the public interest of the Commonwealth of Pennsylvania.

In plain terms : a state Attorney Generals consumer-protection office tried to mediate my dispute with NewRez / Shellpoint . The company refused to resolve it, and the AG is now keeping my complaint for possible enforcement use. 

This is not a situation where I refused mediation ; it is a situation where NewRez / Shellpoint declined to take the off-ramp that would have repaired their servicing errors and protected a 100 % permanently and totally XXXX veteran from further harm. 



2. Why this is willful & deliberate obstruction Federal law requires mortgage servicers to investigate and correct account errors and to respond to written Notices of Error : 12 U.S.C. 2605 ( e ) : Servicers must respond to borrower inquiries and error notices.

12 U.S.C. 2605 ( k ) ( 1 ) ( C ) : Servicers may not fail to take timely action to respond to a borrowers requests to correct errors.

12 C.F.R. 1024.35 : Servicers must acknowledge a Notice of Error within 5 business days and then either correct the error or provide a detailed written explanation within required timeframes.

12 C.F.R. 1024.38 : Servicers must maintain policies and procedures to accurately credit payments, maintain records, and respond to borrower complaints.

In my case : I have already sent multiple RESPA Notices of Error and legal-hold letters to NewRez / Shellpoint about misapplied funds, inaccurate delinquency status, and corrupted escrow.

Instead of providing the required written corrections or a consistent accounting, the company has closed XXXX as duplicates, refused to explain contradictory ledgers, and continued to change key figures ( unapplied funds, escrow balances, past due amounts ) while foreclosure pressure continued. 
The Pennsylvania OAG XXXX email now shows that even when a state AGs office intervened, NewRez / Shellpoint still would not resolve the matter, causing an impasse and forcing the AG to suspend mediation and reserve the complaint for possible enforcement. 

A servicer that 1 ) ignores or duplicate-closes XXXX  and 2 ) refuses to cooperate with a state Attorney Generals mediation process is not simply confused. It is obstructing the statutory error-correction framework that RESPA, Regulation X, and state consumer-protection laws are built on.

3. Ongoing harm Because NewRez / Shellpoint refused to resolve this in the AGs mediation : My VA loan account remains corrupted, with conflicting ledgers and negative escrow despite significant payments. 
I remain under continuing foreclosure risk based on data that the servicer and now a state AGs office know is disputed and potentially unreliable. 
As a 100 % permanently and totally XXXX veteran, this prolonged uncertainty and threat of losing my home causes severe emotional and psychological harm on top of the financial harm. 
Other borrowers who complain to the Pennsylvania OAG may face the same impasse, meaning this pattern is not just about me ; it raises a systemic risk that NewRez / Shellpoint / XXXX will stonewall state-level mediation while continuing harmful servicing practices. 



4. Damages requested For CFPB purposes, I am asking that this complaint be treated as both an individual harm case and an indicator of a broader pattern and practice : Individual relief requested {>= $1,000,000} in compensatory, statutory, and punitive damages for : financial harm from corrupted servicing, threats of foreclosure, and fees ; severe emotional and psychological distress aggravated by my status as a 100 % permanently and totally XXXX veteran ; time, cost, and effort spent pursuing corrections through multiple regulators and now the Pennsylvania OAG.

Full payoff and release of my VA-backed mortgage so that my home is secured free and clear. 
Full correction of all tradelines and credit reports to remove any delinquencies, late fees, or negative remarks that stem from the corrupted data and unresolved errors. 

Systemic / public-interest relief requested Creation of a {>= $1,000,000} restitution and remediation fund for other borrowers serviced by NewRez / Shellpoint XXXX XXXX whose accounts have been impacted by similar data corruption, misapplied payments, or refusal to correct errors, with priority for VA loans XXXX FHA loans XXXX and loans to active-duty military and XXXX veterans. 
A comprehensive servicing-platform audit ( data integrity, escrow handling, payment application, XXXX response procedures ) supervised by CFPB and state regulators ( including Pennsylvania OAG and Tennessee  XXXX XXXX. 
Appropriate civil money penalties for pattern-and-practice violations of RESPA, Regulation X, and unfair / deceptive acts or practices under the Consumer Financial Protection Act and applicable state UDAP laws. 



5. What I am asking CFPB to do Given the Pennsylvania OAG email, I respectfully request that CFPB : Treat this as evidence that NewRez / Shellpoint are refusing to participate in good-faith resolution with a state Attorney General, despite active servicing errors. 
Open ( or expand ) a supervisory or enforcement investigation into NewRez LLC, Shellpoint Mortgage Servicing, and XXXX XXXX XXXX for violations of 12 U.S.C. 2605, 12 C.F.R. 1024.35 & 1024.38, and unfair / deceptive acts or practices. 
Coordinate with the Pennsylvania OAG XXXX XXXX XXXX XXXX to use my complaint file ( XXXX ) as part of any joint or parallel enforcement action. 
Require the company to correct my account, pay damages, and implement systemic fixes so that other consumers are not forced into the same situation. 

Attached is the full email from XXXX XXXX, XXXX XXXX XXXX, Pennsylvania Office of Attorney General, XXXX XXXX XXXX XXXX, which documents the failed mediation and confirms that my complaint is being retained for possible enforcement use.

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