Consumer complaint received 2025-10-20 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: Shellpoint Partners, LLC
State: NJ

Complaint narrative:
I am filing this complaint regarding my FHA-insured mortgage serviced by Shellpoint Mortgage Servicing / Newrez LLC .

My issue concerns the companys refusal to honor FHAs Special Forbearance Unemployment ( SFB-U ) extension policy as outlined in Mortgagee Letter XXXX, Section II.B.2 and HUD Handbook 4000.1 ( III.A.2.k.ii ( A ) ( 1 ) ).

My SFB-Unemployment plan began on XX/XX/XXXX, which is prior to XX/XX/XXXX the effective date of HUDs revised loss-mitigation rules that removed SFB-Unemployment going forward. 

Under Mortgagee Letter XXXX II.B.2, FHA explicitly states that forbearance plans initiated prior to XX/XX/XXXX, shall continue to be governed by the loss-mitigation requirements in effect at the time the forbearance plan was initiated Servicers must not curtail such plans solely on the basis of the policy revisions taking effect on XX/XX/XXXX. 

The prior rule, HUD Handbook 4000.1 ( III.A.2.k.ii ( A ) ( 1 ) ), provides for a re-employment period of up to 12 months under an SFB-Unemployment plan. 

Because my plan began before XX/XX/XXXX, I am grandfathered under the 12-month policy. However, Shellpoint/Newrez has repeatedly told me that my unemployment forbearance can not be extended beyond six months, contrary to FHA policy .

Timeline of my actions : XX/XX/XXXX My FHA unemployment forbearance plan began. 
XXXX XX/XX/XXXX I contacted Shellpoint several times by phone to confirm that I could extend up to 12 months. Multiple representatives and one scheduled loss mitigation appointment confirmed I would be eligible for monthly extensions through 12 months as long as I remained unemployed. 
XX/XX/XXXX I received an email from a Shellpoint representative ( XXXX  XXXX XXXX ) stating that my forbearance would end after six months ( end of XXXX ), citing maximum 6 months allowed.

I replied explaining that FHA policy allows 12 months for plans started before XX/XX/XXXX, and that both HUD and Shellpoint staff had confirmed this earlier. 
XX/XX/XXXX, XXXX I attempted to reach a manager multiple times by phone ; I was transferred and disconnected after long holds. 
I also sent follow-up emails to XXXX, XXXX, and XXXX ( the latter was returned as undeliverable ).

I contacted HUDs National Servicing Center ( via XXXX ). They replied that my inquiry was forwarded but they can not act due to the current federal government shutdown. 
XX/XX/XXXX I mailed a certified RESPA Notice of Error and Request for Information to Shellpoints official address in XXXX, SC, requesting correction and full policy compliance.

Despite all these good-faith efforts, Shellpoint/Newrez has not acknowledged or corrected the issue and continues to deny my 7th-month extension. I remain unemployed and am eligible under FHAs own rules.

I am requesting that the CFPB review this matter and ensure the servicer : Extends my FHA SFB-Unemployment plan through XX/XX/XXXX ( 12 months total ), consistent with the policy in effect when my plan began.

Places my account in no adverse action status while the issue is under review.

Responds in writing to my certified RESPA request as required under 12 C.F.R. 1024.351024.36.

I have acted in good faith, provided all required information, and followed both HUD and CFPB guidance, but the servicer is not honoring federal servicing rules. 

XXXX XXXX XXXX XXXX XXXX Loan # XXXX

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