Consumer complaint received 2026-06-10 00:00:00
Product: Mortgage — Conventional home 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: CA

Complaint narrative:
Request for Investigation Mortgage Credit Reporting Following XXXX XXXX Disaster Forbearance I am requesting that your office investigate the post-forbearance credit reporting practices of Shellpoint Mortgage Servicing as they relate to homeowners affected by the XX/XX/XXXX XXXX XXXX disaster. My family entered into a mortgage forbearance agreement with Shellpoint in XX/XX/XXXX after our home sustained significant damage in the XXXX XXXX. We were displaced from our home while remediation and reconstruction activities were underway and incurred substantial additional living expenses, including rental housing and rebuilding costs not fully covered by insurance. By XX/XX/XXXX, we were prepared to resume making mortgage payments. On XX/XX/XXXX, I contacted Shellpoint and advised them that I was ready to begin repayment. At that time, I was informed that I had only two options : Pay the entire forbearance balance, approximately {$52000.00}, in a lump sum ; or Enter a Trial Payment Plan that would ultimately lead to a loan modification. Like many families impacted by the XXXX XXXX, we did not have the financial ability to pay the entire forbearance balance immediately due to the extraordinary costs associated with displacement and rebuilding. On XX/XX/XXXX, Shellpoint sent a written Trial Payment Plan offer. The plan required trial payments beginning XX/XX/XXXX, and ending XX/XX/XXXX. At the conclusion of the trial period, Shellpoint would determine the terms of a permanent loan modification. I was informed that I could either accept those future terms or satisfy the entire outstanding forbearance balance. Importantly, I specifically asked Shellpoint whether I could simply resume making my regular mortgage payments immediately in order to avoid damage to my credit. I was told that this was not an available option. I was further advised that my loan would not be considered current until completion of the trial period and execution of a permanent modification agreement. As a result, despite my willingness and ability to resume making regular monthly payments, Shellpoints process provided no mechanism for me to protect my credit standing between XXXX and XX/XX/XXXX unless I paid the entire {$52000.00} forbearance balance in a lump sum. On XX/XX/XXXX, my credit score fell from approximately XXXX to XXXX after Shellpoint reported my mortgage account as more than 60 days delinquent to the credit reporting agencies. When I contacted Shellpoint regarding the reporting, I was advised that this was company policy and that the only way to avoid negative credit reporting was to pay the entire forbearance balance immediately. I believe this practice raises serious public policy concerns when applied to disaster victims. Homeowners affected by federally declared disasters often face significant financial hardship, including temporary housing costs, uninsured rebuilding expenses, and disaster-related debt. Requiring a lump-sum repayment to preserve ones credit score effectively forces disaster victims to choose between maintaining their creditworthiness and preserving limited financial resources needed for recovery. My concern extends beyond my individual circumstances. The XXXX and XXXX XXXX displaced thousands of families and destroyed or damaged thousands of homes throughout XXXX XXXX XXXX. If mortgage servicers are permitted to report disaster-affected borrowers as delinquent during mandatory trial modification periodseven when borrowers are willing to resume regular payments and are complying with servicer instructionsmany families may suffer substantial and long-lasting credit harm as a direct consequence of participating in disaster-relief programs. I respectfully request that your office review whether these practices are consistent with the intent of Californias and the Federal Governments 's disaster-related mortgage protections, applicable credit reporting requirements, and consumer protection laws. I also request consideration of additional safeguards to ensure that homeowners who participate in disaster-related forbearance and loan modification programs are not subjected to unnecessary credit damage while attempting to recover from a federally declared disaster. Thank you for your attention to this matter. Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX. XXXX, CA XXXX

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