Consumer complaint received 2020-01-12 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
XX/XX/XXXX : Received a letter in the mail on XX/XX/XXXX from my Condo Insurance Company stating that my insurance had lapsed and was cancelled XX/XX/XXXX at XXXX as the initial payment was not received. They stated that I had 15 days from that date to make the payment to get the policy reinstated. I immediately called NewRez Mortgage ( Shellpoint Mortgage Servicing ) to question why my Condo Insurance was not paid. The Representative stated that it had been paid and provided check numbers. Then upon further investigation, she finds that it had in fact, NOT been paid and could not explain why. She assured me that a check would be sent out by XX/XX/XXXX and I should call my insurance company and let them know a check was coming. She and I reviewed the information for which the premium should be sent to ( name and address ) and we got off the phone. I called my condo insurance company immediately after and confirmed a check would be sent XX/XX/XXXX. 
XX/XX/XXXX : Noted an Insurance Premium Disbursement in the amount of {$550.00} on my statement. 
XX/XX/XXXX : Upon review of my account I found that NewRez Mortgage ( Shellpoint Mortgage Servicing ) had charge me a late fee of {$67.00} on XX/XX/XXXX. I knew this to be an error as I usually pay my mortgage well before the XXXX of the month. As I investigated the problem further I found that on XX/XX/XXXX they took my regular bi-weekly mortgage payment in the amount of {$1300.00} and applied it as a Principle Only Payment. I also found that in XX/XX/XXXX another one of my bi-weekly regular payments was applied as another Principle Only Payment in the amount of {$1300.00} disrupting my payments. I then called NewRez Mortgage ( Shellpoint Mortgage Servicing ) and began questioning them as to why they were applying my payments as Principle Only and charging me late fees. She stated that it was a computer error and was because I did not make ACH payments through NewRez Mortgage ( Shellpoint Mortgage Servicing ). It was then explained that I have made all payments through my bank every other week since XX/XX/XXXX without issue. I requested that these errors be fixed and flagged to decrease the possibility of repetition, and I wanted the late fee removed immediately. She then stated it would take 3-5 business days to be corrected and reflect correctly on the account. 
XX/XX/XXXX : After speaking with NewRez Mortgage ( Shellpoint Mortgage Servicing ) in the morning I then received a phone call from NewRez Mortgage ( Shellpoint Mortgage Servicing ) in the afternoon and of course I answered the call as I believed it would be in regards to the accounting errors. The XXXX XXXX woman ( who was very hard to understand ) requested that I hold for her manager, so I agreed to wait. The male XXXX XXXX man that got on the phone started the conversation with, Why havent you responded to our letters and phone calls! I began asking him what his phone call was in regards to because I did not receive any letters or phone calls from Shellpoint. He started yelling at me, You need to listen to me ... I explained that I am not interested in being solicited for a mortgage refinance and not to call my home again. I work the night shift and sleep during the day and again I did not want to be solicited ever again. This man was so disgusting, he told me to go back to bed, and I will call you anytime this financial institution warrants him to call. He then began to state that he wants to talk with me about a LOAN MODIFACTION. Again, I told him that I am not interested and ended up hanging up on this man because he would not take no for an answer. When I got off the phone, I was overwhelmed with the idea that this might be a scam phone call but my caller ID said it was Shellpoint and I began to investigate why my own Mortgage company would be calling me trying to pressure me into a Loan Modification. And it seems that because of the obvious account errors in the form of Principle Only Payments, it looks like I am not paying my mortgage on time and the late fees flagging Shellpoint to call me. I have since written a letter requesting no further solicitation from NewRez LLC/Shellpoint including in the mail, email, text message or phone calls. 
XX/XX/XXXX : Called NewRez ( NewRez LLC/Shellpoint Mortgage Servicing ) again in XXXX regarding XX/XX/XXXX & XX/XX/XXXX payments applied as Principle Only Payments again. I requested to speak to a supervisor and got hung up on/disconnected. I was also calling about the accounting ledger provided from both my online account and from the statements mailed to me. I explained that I was unable to determine what exactly has been corrected as all the transactions have the same date, and it makes no sense what they have done with my mortgage payments. I requested that an accurate accounting ledger of actual payments, noted on the actual dates the payments were made and then the actual date they fixed the payment be mailed to me immediately. I have not seen anything from NewRez showing actual dates. And the manager on the phone informed me it would take 24-48 hours to see the changes applied from the XXXX accounting mistakes. 
XX/XX/XXXX : Found a major water leak inside the walls of my Condo. 
XX/XX/XXXX : Filed a claim with my Condo Insurance provider XXXX. Representative informed me that XXXX, my adjuster, would be in contact with me in 1-2 business days. 
XX/XX/XXXX : One week after claim filed with XXXX Condo Insurance called as I have not heard from anyone at XXXX regarding my water leak. Called and spoke to a representative who told me that she did not have XXXX, the adjusters telephone number and would have to leave him an email. When I asked her if it was normal company policy for it to take a week to make contact with their customer to start processing a claim? She stated, no. She stated XXXX would call me the next day. 
XX/XX/XXXX : Received a call from XXXX, claims adjuster for XXXX Condo Insurance, and he informed me that I did not actually have a policy with his company. He gave me the phone number to the Condo Underwriting Team to clarify what has happened. 
XX/XX/XXXX @ XXXX : Spoke with representative from Condo Underwriting Team at XXXX. She informed me that my policy had been cancelled for non-payment on XX/XX/XXXX. They never received any payments from NewRez/Shellpoint but stated that NewRez had called them twice prior to cancellation letter had been sent to my home. On XX/XX/XXXX @ XXXX and also XXXX. Two different representatives called requesting a cancellation letter be faxed to XXXX. There has been no further communication about payments. XXXX states to have NewRez call them and if a payment has been made they will retro back my insurance and cover my claim. 
XX/XX/XXXX @ XXXX : Spoke with a representative about XXXX Condo Insurance not having been paid. Representative informed me that it had been paid by CK # XXXX sent on XX/XX/XXXX and that the check had cleared on XX/XX/XXXX. I then requested for her to call XXXX and give them the check numbers and resolve this with them. She placed me on a HOLD and called the insurance company. She came back and said she was not able to call them and needed 24-48 hours. I then informed her of a noted transaction on my XX/XX/XXXX Mortgage Statement that says on XX/XX/XXXX Insurance Refund {$550.00}. If they paid my condo insurance why was there a refund for insurance? She stated she would need to investigate and call me back. 
XX/XX/XXXX : XXXX from NewRez called and left a message. I called her back at XXXX, and she disclosed that they had mailed a check to the wrong company to the wrong address. It was mailed to XXXX XXXX XXXX and not my insurance company XXXX XXXX XXXX XXXX. I did not understand how they had the wrong company since they had paid them before, there were no changes in insurance companies and I called in XXXX to confirm they were being paid! I then asked her what the company policy was regarding informing the customer of an insurance loss or lapse. She stated, You should have been notified by letter in 7 days and that did not happen. I informed her that moving forward I would have to consult an attorney and that I am requesting that my loan be sold to another company. She states, I will move this along to my supervisors for further investigation. 
Because NewRez LLC/Shellpoint Mortgage Servicing did not pay my insurance premium in XX/XX/XXXX I went unknowingly 3 months without Condo Insurance. Had I known they did not actually pay it, I would have paid it myself. No premium payment ment I had no policy with XXXX and ultimately NO CLAIM. I have had to come up with {$5200.00} out of my own pocket a week before XXXX. I have since sent a demand letter to NewRez/Shellpoint Mortgage Servicing to be reimbursed for the damages. This has been a huge emotional and financial burden. 
I have serious concern about the accounting practices of NewRez LLC/Shellpoint Mortgage Servicing. I have had to call and speak with them every month on how to apply my payments. They charge late fees when it is their accounting error. They do not complete the basic tasks of managing an escrow account, for example paying insurance premiums on time and providing an accurate accounting ledger of mortgage payments. I would like for NewRez LLC to sell my loan to ANYONE else, as I have lost confidence in their ability to manage my loan.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation