Consumer complaint received 2026-03-17 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Paying off the loan
Company: Shellpoint Partners, LLC
State: FL

Complaint narrative:
This complaint concerns the servicers failure to execute mortgage recasts on XXXX commercial portfolio loans held by related entities. BACKGROUND : Between XXXX and XX/XX/year>, we made {$830000.00} in principal payments on the first loan following the sale of multiple properties from a portfolio. These consisted of XXXX principal adjustments ( {$120000.00} + {$270000.00} + {$43000.00} + {$47000.00} + {$51000.00} + {$51000.00} ) and XXXX principal-only payment ( {$240000.00} ). Total principal paid over the life of that loan is {$900000.00}. The original loan amount was {>= $1,000,000} and the current balance is {$410000.00}. A second loan, held by a related but separate legal entity, was submitted for recast at the same time and also has not been executed. RECAST REQUEST : In late XXXX, we submitted formal recast requests for both loans reamortization of the remaining balances over the remaining terms at the contractual interest rates to produce recalculated monthly payments. THE SERVICERS FAILURES : 1. We followed up more than XXXX times by phone. Each representative dismissed us, stating the recast was completed. The payment never changed. 2. We eventually reached a representative with direct access to the recast department who confirmed the recast was NEVER properly executed. They attributed this to an internal system error during a platform transition that caused the recast to display as complete when it was not. They promised to reprocess it. 3. The recast was not reprocessed. The payment did not change. 4. On a subsequent call, a second recast department representative guaranteed completion and promised a callback. XXXX weeks passed with no callback and no correction. 5. The servicer is now assessing {$40.00} in NSF fees and {$460.00} in other fees because the inflated, incorrect payment amount is causing payment processing issues fees caused entirely by the servicers own failure. THE OVERCHARGE : The first loan has an interest rate of 7.625 % and matures in XX/XX/year> ( XXXX months remaining ). Reamortizing {$410000.00} at 7.625 % over 340 months produces a correct P & I payment of {$2900.00}. With escrow of {$1000.00}, the correct total monthly payment is {$4000.00}. The current monthly payment is {$10000.00} ( {$9000.00} P & I + {$1000.00} escrow ) XXXX times the correct amount. We are being overcharged {$6000.00} per month ( {$73000.00} per year ). This is mathematically provable : at 7.625 % on {$410000.00}, the monthly interest charge is {$2600.00}. The current P & I payment of {$9000.00} sends {$6400.00} ( 70.8 % ) to principal. In a properly amortized mortgage, early-term payments allocate 7090 % to interest, not principal. A 70.8 % principal allocation would only occur in the final XXXX years of the loan. This proves the payment was calculated on the original ~ {$1.00} million balance and was never reamortized. XXXX XXXX : Several properties securing the loan have been sold and the rental income from the remaining portfolio is significantly reduced. The recast was requested specifically to align payments with reduced cash flow. The overcharge on the first loan alone is approximately {$73000.00} per year. Combined with the second unrecast loan, the total harm is even greater.

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