Consumer complaint received 2026-04-23 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Shellpoint Partners, LLC
State: NJ

Complaint narrative:
* * CFPB Complaint Follow-Up / Dispute of Company Response * * I am submitting this follow-up in response to Shellpoint Mortgage Servicings reply , as their explanation to my permanent HELOC Freeze, does not resolve the core issues and raises additional concerns. While the servicer cites internal policy stating that a HELOC becomes permanently frozen after 45 days past due, this policy is not clearly disclosed in my loan agreement as an automatic and irreversible outcome. The agreement language provided ( Section 23 ) states that the lender may take certain actions, including permanently prohibiting advances, but does not mandate such action, nor does it establish that such a decision is irreversible or not subject to review. Additionally, my agreement includes language stating that borrowing privileges may be reinstated once the condition causing the restriction no longer exists and upon written request. This provision has not been meaningfully addressed or reconciled with the servicers interpretation. The servicer also acknowledges that I had access to my HELOC after the account became delinquent, attributing this to system delays and errors. However, this continued access into XXXX contradicts the assertion that the account was definitively and permanently restricted as of XXXX. * * Clarification of Account Status : * * At no point has my loan been in formal default as defined by the loan agreement. The account has experienced temporary delinquency periods ; however, I have consistently resumed payments and brought the account current. The loan history provided confirms ongoing payments and servicing activity through XXXX. My concerns are as follows : * The servicer is applying an internal policy that is not clearly defined in the loan agreement as binding or irreversible * The agreements reinstatement provisions have not been properly considered or explained * The acknowledgment of system errors raises questions about the consistency and accuracy of servicing actions applied to my account Further, the application of an undisclosed or insufficiently disclosed policy that results in a permanent and irreversible loss of borrowing privileges, particularly where contract language suggests reinstatement may be available, raises concerns regarding potential unfair or deceptive acts or practices ( UDAAP ). I also understand that my loan is serviced by Shellpoint Mortgage Servicing under the Newrez servicing structure, and I request that this matter be reviewed at the appropriate level within that organization. * * Requested Resolution : * * 1. A documented explanation of where the 45-day permanent freeze policy is explicitly stated in the loan agreement as mandatory and irreversible 2. Clarification of why the reinstatement provisions in the agreement do not apply in my case 3. A formal review of whether discretion can be exercised to reinstate borrowing privileges based on current account standing and resolved hardship 4. Confirmation that all servicing actions taken on my account were applied consistently and in accordance with contractual terms If the servicer maintains its position, I request a clear explanation of how its internal policy can override or limit rights otherwise granted under the loan agreement. I continue to seek a fair, transparent, and contractually consistent resolution to this matter.

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