Consumer complaint received 2025-01-13 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: FL

Complaint narrative:
I am writing to follow up on my previous complaint ( XXXX ) and to express my ongoing concerns regarding my loss draft claim with Newrez. Over the past year, I have experienced significant delays in the completion of repairs to my property due to the inconsistencies, lack of communication, and what appears to be intentional delay tactics employed by Newrezs Loss Draft Department. These issues seem to be aimed at profiting from escrow account interest and unnecessary fees. 

My current situation involves the reopening of a closed claim on XX/XX/XXXX, following an approved supplemental payment from my insurance company. When I contacted the Loss Draft Department to reopen the claim, I was informed that I needed to provide the fully endorsed claims check, adjusters report, contractors proposal, and claim form. After submitting all requested documents, including the endorsed claims check delivered on XX/XX/XXXX, I called on XX/XX/XXXX and was told that no additional information was required. I was informed it would take XXXX business days to process the check and that I would receive my first disbursement within 7 to 10 business days. On XX/XX/XXXX, the claims check was deposited into an escrow account. 

However, on XX/XX/XXXX, after not receiving a check within the specified timeframe, I called to inquire about the delay. I was informed that the check had not been mailed and was still pending processing. I was told my claim would be escalated to a supervisor and that I should expect to hear something within XXXX business days. When I followed up again on XX/XX/XXXX, after not being contacted, I was told that no funds would be released because an inspection was required, as my last inspection showed only 70 % of the work completed. I explained to the agent that this inspection was related to my initial claim, which was closed on XX/XX/year>, at which point all funds had been released. According to Newrezs frequently changing policies, funds are released only when 95 % of the work is completed. I inquired as to why an inspection was required under these circumstances, but I did not receive a logical explanation. The necessity for an inspection at this stage appears to result in unnecessary fees, especially considering that the remaining funds were released on XX/XX/year>, and no inspection had been requested in the previous seven months before the claim was reopened. Also, despite their policy of being contacted within 2-3 business days for an inspection it took nearly 1 month to be contacted for the initial inspection and nearly 2 months for it to be completed from the initial request. Additionally, I requested to speak with a supervisor during the call but was informed that none were available and that one would reach out to me. When I asked about my case 's processing status, I was told that a processor had not been assigned to my claim since it was reopened over a month ago. I requested an email address for a supervisor or someone who could address my questions, as the agent stated he did not make the rules. To date, I can recall only one instance of Newrez contacting me regarding my original and reopened claims, which was on XX/XX/year>, after I filed multiple complaints with consumer protection agencies It has become increasingly clear that Newrez has implemented policies and delay tactics designed to maximize the length of time that insurance funds are held in escrow for their benefit, allowing them to profit off interest rates. They also appear positioned to gain from any foreclosures due to default, particularly given the significant increase in property values over the past few years. These policies and delays do not seem to be aimed at preventing fraud, but rather serve Newrez 's interests. Furthermore, this is not an isolated incident ; it appears to be a widespread business practice, as evidenced by numerous discussion boards where consumers report facing similar issues with Newrez

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