Consumer complaint received 2026-05-19 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Shellpoint Partners, LLC
State: SC

Complaint narrative:
This mortgage company gave me a XXXX day grace period to make my mortgage payments but they changed this after a couple of years to XXXX days without providing me any notice of the change. They ignored all my emails over the past year asking them to explain why late fees were being charged until I finally threatened to file a complaint here in XX/XX/XXXX. They responded for the first time regarding this ongoing issue today XX/XX/XXXX in the attached denial letter, saying they will not remove the late fees. They referred to my original promissory note saying the XXXX day grace period was an error, and that they are able to charge them after XXXX days. However, they ignore Section XXXX of the enclosed Promissory Note that explicitly states that a late charge applies after XXXX days " unless applicable law requires a longer period of time before a late charge may be imposed, in which event such longer period shall be substituted. '' Per South Carolina Code 37-3-203 ( 2 ), no creditor may assess a late charge on a consumer loan unless the installment remains unpaid for XXXX ( XXXX ) days after the scheduled due date. Furthermore, South Carolina Code 37-10-103 establishes strict consumer protection limitations on mortgage late fee mechanics. Because the Promissory Note explicitly mandates that state law overrides and substitutes a longer grace period, my contractual grace period is legally XXXX days, not XXXX days. Therefore, any payment received on or before the XXXX of the month is contractually timely and can not incur a late fee. A review of my Loan History Statement shows that Shellpoint has been systematically assessing late fees on the XXXX of the monthonly XXXX days after the due XXXX direct violation of SC law and Section 6 of my Note. For example : XX/XX/XXXX : Payment was made on the XXXX. A late fee was illegally assessed on the XXXX. XX/XX/XXXX : Payment was made on the XXXX. No fee should apply under a XXXX law. Established Course of Performance ( XXXX XXXX XXXX ) : From the origination of this loan in XX/XX/XXXX until XX/XX/XXXX ( a period of over XXXX years ), Shellpoint established a clear " course of performance '' by systematically operating under a XXXX grace period. Under South Carolina law, a sequence of repeated conduct that is accepted without objection is relevant to determining the operational meaning of the agreement and constitutes a legal waiver of any conflicting internal policies. No Valid Proof of Prior Notification : Shellpoints own response dated XX/XX/XXXX, fails to provide any evidence of a formal, advance change-of-terms disclosure. Instead, Shellpoint explicitly admits that the very first " notice '' of the corrected grace period was simply printed directly onto the XX/XX/XXXX billing statement. Illegally Assessing Retroactive Fees : Shellpoint 's attached Loan History Statement proves an obvious servicing violation : a late fee was assessed to my account on XX/XX/XXXX, XXXX full days before the XX/XX/XXXX statement containing the alleged notice was even generated. Penalizing a consumer retroactively before giving written notice of an altered term is highly deceptive and a bad-faith servicing practice. Violation of Truth in Lending Act ( 12 CFR 1026.20 ) : A mortgage servicer can not abruptly modify payment processing window logic or reverse a multi-year course of performance under the guise of a " system setup error '' without providing a formal disclosure notice at least XXXX days prior to the change taking effect. Furthermore, this company would not even tell me who owns my loan until I filed a formal complaint with the credit bureaus. Fair Credit Reporting Act ( FCRA ) Violations & Inaccurate Account Ownership : Complete Deletion of Credit History : Despite making timely monthly payments of {$1800.00} for years, Shellpoint Mortgage Servicing and its parent company, Newrez, are completely failing to report my positive payment history to the XXXX major credit bureaus ( XXXX XXXX, and XXXX ). I am receiving XXXX credit profile benefit for my timely history. Inaccurate Tradeline Documentation : Following a formal credit bureau dispute regarding the absence of this mortgage tradeline, I received correspondence indicating that the actual owner of the mortgage is XXXX XXXX XXXX XXXX XXXX XXXX, as Owner Trustee for XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, DE XXXX ). Lack of Alignment with " Investor '' Guidelines : Shellpoints Compliance Department claimed in their written denial that these {$570.00} in late fees were strictly required to " align with the loan terms ''. However, Shellpoint is applying arbitrary and legally flawed billing logic ( using a XXXX grace period that blatantly violates both Section XXXX of my Promissory Note and South Carolina Code 37-3-203 ( 2 ) & 37-10-103 ) while operating under the umbrella of a securitized trust. Deceptive Double Standard : Shellpoint is weaponizing " investor terms '' to retroactively invent late fees, yet they completely hide the mortgage tradeline from my credit files, preventing the loan from building my consumer credit profile.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation