Consumer complaint received 2025-10-29 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX {$16.00} XXXX, issued batch foreclosure threats, altered metadata, and harmed XXXX veteran homeowners. 



Unified Forensic Accounting, XXXX XXXX, and Systemic Misconduct Report XXXX XXXX & XXXX XXXX XXXX NewRez LLC XXXX Shellpoint Mortgage Servicing ( a XXXX XXXX XXXX  ) I. Executive Introduction This forensic dossier establishes, through authenticated metadata, payment ledgers, call recordings, and amortization reconstruction, a sustained and system-wide pattern of payment misapplication, document falsification, and coercive foreclosure conduct by NewRez LLC XXXX Shellpoint Mortgage Servicing, wholly owned by XXXX XXXX XXXX XXXX 

Between XX/XX/XXXX and XX/XX/XXXX, NewRez repeatedly : 1. Accepted full, timely payments yet placed them in unapplied/suspense status. 
2. Generated retroactively dated statements showing artificial delinquencies.

3. Issued batch-produced foreclosure threats to current borrowers.

4. Misrepresented balances to investors and credit bureaus.

Enhanced digital forensicsvia optical character recognition ( OCR ), XXXX hashing, and XXXX XXXX XXXX  that document creation timestamps, internal software tags, and revision histories were overwritten or erased, confirming manual alteration. These findings align with federal class-action evidence ( XXXXXXXX XXXX XXXX  XXXX XXXX XXXX XXXX ; XXXX v. NewRez, XXXX XXXX XXXXXXXX ). 



XXXX. Loan Parameters and Evidentiary Source Validation Original Principal : {$620.00} XXXX Rate : 5.25 % ( fixed ) Term : 30 years ( 360 months ) Monthly Payment ( XXXX ) : {$3.00} XXXX Portion : $ XXXX Date : XX/XX/XXXX Current Principal ( XX/XX/XXXX ) : {$580.00} XXXX All statements, letters, and portal screenshots were authenticated through enhanced OCR and XXXX hashing. Header data identify generation by XXXX XXXX XXXX XXXX XXXX  and XXXX XXXX XXXX. Timestamp sequences are non-chronological : multiple XX/XX/XXXX PDFs carry XX/XX/XXXX creation datesconclusive evidence of retroactive document regeneration. Identical anomalies appear in XXXX exhibits from XXXX and XXXX. 

Amortization Comparison ( XX/XX/XXXX XX/XX/XXXX ) Period Expected Principal ( 5.25 % ) Actual Principal ( NewRez XXXX ) Variance Observations XX/XX/XXXX XX/XX/XXXX {$10.00} XXXX {$8.00} XXXX {$2.00} XXXX XXXX payments posted late ; escrow overdrawn XX/XX/XXXX XX/XX/XXXX {$11.00} XXXX {$10.00} XXXX {$1.00} 805 Months flagged partial though paid in full XX/XX/XXXX XX/XX/XXXX {$10.00} XXXX {$9.00} XXXX {$1.00} XXXX Multiple unapplied entries ; suspense activity XX/XX/XXXX XX/XX/XXXX {$1.00} XXXX {$960.00} {$770.00} XX/XX/XXXX payment ( {$3.00} XXXX ) not applied Totals {$35.00} XXXX {$31.00} XXXX {$4.00} XXXX Aggregate uncredited principal reduction Interpretation : Had payments been properly credited, the principal should equal {$580.00} XXXX. NewRezs figure ( {$580.00} XXXX ) inflates principal by {$4.00} XXXX, compounding {$1.00} XXXX in unwarranted interestnumerically consistent with the {$16.00} XXXX unapplied balance the company acknowledged in recorded calls. 



XXXX. Forensic Accounting Reconstruction ( XX/XX/XXXX XX/XX/XXXX ) Total Payments : {$140.00} XXXX Funds : {$16.00} XXXX ( acknowledged XX/XX/XXXX ). 

On XX/XX/XXXX, XXXX XXXX payments ( {$750.00} and {$3.00} XXXX ) cleared the XXXX checking account. Shellpoints portal displayed Last Payment Received XX/XX/XXXX yet credited only {$750.00}. Bank records and metadata logs prove both withdrawals succeededan internal misapplication. The remaining {$3.00} XXXX discrepancy equals the uncredited portion of the larger transfer. 

During that call, the agent confirmed {$12.00} XXXX held unapplied, promised to apply it toward XXXX and XX/XX/XXXX and issue a {$4.00} XXXX refund check within XXXX business days. No correction occurred. 

Despite full payment, on XX/XX/XXXX NewRez issued a foreclosure-threat letter demanding {$14.00} XXXX fabricated arrearage. This violates RESPA 6, Reg X 1024.35, and FDCPA 807 ( 10 ). 



IV. XXXX Integrity Findings Enhanced OCR & XXXX XXXX Results Overwritten transaction nodes : XMP fields re-saved post-issuance. 
Batch foreclosure templates : identical XXXX hashes and creation timestamps across letters. 
Erased edit trails : missing Modified-By fields indicate intentional scrubbing. 
Cross-file correlation : metadata rewrite dates match accounting anomalies. 

These signatures expose a centralized document pipeline used to mass-produce foreclosure demands while suspending fundsconfirming systemic intent, not clerical error. 

XI. Evidentiary Recordings and Witness Testimony ( Expanded ) A. Categories of Recorded Evidence 1. Acknowledgment and Promise of Correction ( XX/XX/XXXX XX/XX/XXXX XXXX ) Agents confirmed {$12.00} XXXX held in unapplied funds, promised application to XXXX XXXX and a {$4.00} XXXX refund. 
Legal significance : Establishes actual knowledge of funds, promise of restitution, and subsequent breach. 
XXXX. Contradictory Balances and Mathematical Manipulation ( Multiple XXXX ) Several calls show agents producing impossible arithmeticfor example, stating that paying {$3.00} XXXX left the borrower two months behind, or recalculating arrears differently within a single conversation. 
Legal significance : Demonstrates deceptive accounting practices ; violates RESPA XXXX ( k ) ( XXXX ) ( A ) ( failure to apply payments ) and FDCPA XXXX ( XXXX ) ( A ) ( false representation of debt ). 
XXXX. Refusal to Provide Audit or Accounting Transparency ( XXXX ) Borrower requested a full audit under Reg X 1024.35 ; agents repeatedly stated : We can only send you a payment history ; we dont provide audits.

Despite formal Qualified Written Requests ( QWRs ), no reconciliation was furnished.

Legal significance : Each refusal constitutes a discrete servicing-error violation under 12 C.F.R. 1024.35 ( e ) and establishes a pattern or practice of non-compliance.

4. Contradictory Status Updates and Foreclosure Threats ( XXXX ) On calls where the borrower was told youre current, subsequent letters and emails within days claimed three months delinquent.

Legal significance : Evidence of systemic miscommunication between servicing and collections systems ; supports unfair-practice claim under CFPA 5536 ( a ) ( 1 ) ( B ).

5. Coercive Catch-Up Payment Demands ( 20232025 ) Agents pressured the borrower to make back-dated payments to stay in good standing, even while unapplied balances existed sufficient to cover future installments.

Legal significance : Coercive collection tacticactionable under FDCPA 807 ( 10 ) and RESPA 6 ( f ) ( 2 ) ( A ) for damages stemming from unnecessary duplicate payments. 


Recorded Admissions ( XX/XX/XXXX XX/XX/XXXX XXXX ) During a 15-minute call with a NewRez servicing agent, later authenticated and time-stamped, the agent expressly confirmed : I see about XXXX XXXX dollars in unapplied funds on your account. Well go ahead and move that to XXXX and XXXX payments and issue you a refund check for around XXXX XXXX dollars. You should receive that within seven to ten business days. 

A follow-up call the next morning ( XX/XX/XXXX ) with a different agent corroborated the same data and timeframe. 
Neither agent disputed that all payments were current. 
These conversations, preserved in unedited .wav format and verified via hash, prove actual knowledge of unapplied funds and a clear promise of correction that was never fulfilled. 

Despite those admissions, a foreclosure threat letter dated XX/XX/XXXX demanded {$14.00} XXXX to reinstate the loan. 
Issuing a collection or foreclosure notice after explicit internal acknowledgment of a current account constitutes : a knowing misrepresentation of debt under FDCPA XXXX ( XXXX ) ; a failure to correct a servicing error under RESPA XXXX / Reg X XXXX ; and evidence of reckless disregard supporting punitive damages under RESPA XXXX ( f ) ( XXXX ) ( B ). 

These calls, combined with metadata and ledger data, shift this case from administrative negligence to deliberate misconduct. 


V. Batch Foreclosure Workflow and Systemic Pattern Metadata from the XX/XX/XXXX foreclosure notices shows identical workstation ID and creation window, establishing batch mail merging across borrowers. 
This pattern mirrors nationwide litigation : XXXX v. NewRez LLC, XXXX. XXXX, XXXX class action alleging zombie reinstatement balances. 
XXXX v. NewRez LLC, XXXX. XXXX, XXXX RESPA/FDCPA violations. 
XXXX v. NewRez LLC, XXXX. XXXX, XXXX escrow and payment misapplication. 

The CFPB XXXX Highlights XXXX XXXX and FTC Mortgage Servicing Advisory XXXX both reference NewRez-related audits on suspense-account practices and automated foreclosure generation. Public court filings confirm ongoing multistate Attorney General investigations into XXXX XXXX servicing arm. 



VI. Legal Framework and Applicable Authorities Federal Statutes Real Estate Settlement Procedures Act ( RESPA ) XXXX ( XXXX XXXX. XXXX ) duty to apply payments promptly. 
Regulation X ( XXXX C.F.R. XXXX ) servicing-error resolution. 
Truth in Lending Act ( TILA ) XXXX XXXX. XXXX prohibits delayed crediting. 
Fair Credit Reporting Act ( FCRA ) XXXX XXXX. XXXX ( b ) duty to correct false data. 
Fair Debt Collection Practices Act ( FDCPA ) XXXX XXXX. XXXX, XXXX misrepresentation & damages. 
XXXX XXXX XXXX XXXX ( XXXX ) XXXX XXXX. XXXX ( a ) ( XXXX ) ( B ) unfair or deceptive acts. 
XXXX XXXX. XXXX falsification of financial records. 
XXXX XXXX XXXX XXXX ( XXXX ) XXXX XXXX. XXXX foreclosure protections. 
Tennessee XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( b ) ( XXXX ). 

Precedent Cases XXXX v. Caliber Home Loans ( XXXX XXXX. XXXX. ) ; In re XXXX ( XXXX XXXX. XXXX. XXXX ) ; XXXX XXXX XXXX ( XXXX XXXX XXXX ) ; XXXX XXXX XXXX XXXX ( XXXX S.D. XXXX ) ; XXXX v. XXXX ( XXXX XXXX. XXXX. ) ; XXXX v. XXXX Bank ( XXXX XXXX Cir. ) ; XXXX v. XXXX Mortgage ( XXXX XXXX. XXXX ). 



XXXX. Damages and Compensable Harm XXXX XXXX XXXX veteranand XXXX XXXX suffered severe emotional and psychological distress from false delinquency and foreclosure threats. 

Under RESPA XXXX ( f ) ( XXXX ) ( A ) and FDCPA XXXX, actual, statutory, and punitive damages apply. 

XXXX XXXX : XXXX XXXX XXXX Mortgage XXXX XXXX XXXX XXXX ( XXXX XXXX. XXXX ) ; XXXX v. Creditors Interchange XXXX XXXX XXXX ( XXXX XXXX ) ; XXXX XXXX XXXX XXXX XXXX XXXX ( M.D.Ala. XXXX ). 

Claimed Damages : {$150.00} XXXX for emotional and psychological injury, plus statutory penalties and punitive relief for reckless disregard of federal law. 



XXXX. XXXX XXXX and XXXX XXXX Evidence reveals a servicer-wide profit model : hold payments record delinquency issue reinstatement letters collect duplicate payments correct records later. 
This inflates XXXX XXXX cash flows and misstates securitized loan performance, constituting potential violations of XXXX XXXX. XXXX ( b ) ( XXXX ) ( A ) ( false books and records ). 
Such conduct endangers investor confidence and federal reporting integrity ( XXXX XXXX XXXX XXXX XXXX ). 



XXXX. XXXX XXXX XXXX and ledger data together prove systemic misconduct : identical letter hashes, unapplied funds, and federal corroboration. 
The XXXX experience represents a national pattern of coercive servicing under active litigation and regulatory review. 
Full payments made ; {$16.00} XXXX withheld ; false foreclosure issued ; veteran family harmed. 
Violations span RESPA, TILA, FCRA, FDCPA, XXXX, and XXXX. 



X. Requested Resolution XXXX. Apply and reconcile all unapplied funds ( XX/XX/XXXX present ). 
XXXX. Refund {$16.00} XXXX and remove unlawful fees/escrow offsets. 
XXXX. Certify loan as current and not delinquent. 
XXXX. XXXX XXXX XXXX XXXX FCRA XXXX XXXX 
XXXX. Pay {$150.00} XXXX in compensatory and punitive damages. 
XXXX. XXXX independent third-party forensic audit reportable to CFPB, FTC, and State AGs. 




XXXX XXXX XXXX XXXX XXXX {$16.00} XXXX, issued batch foreclosure threats, altered metadata, and harmed XXXX veteran homeowners.

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