Consumer complaint received 2021-04-18 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC
State: IL

Complaint narrative:
For the month of XX/XX/XXXX we received a billing statement that indicated an escrow shortage. According to our records this is highly inaccurate because we have had sufficient funds in our escrow account the whole year. We called Shellpoint many times but the phone line kept going in a loop where I would always end up at the main menu even after indicating several times that I would like to speak to a representative. We were unable to reach them via the phone. Thus we made our normal {$610.00} payment for the month of XX/XX/XXXX because we wanted to get in touch with Shellpoint first so we can fix the issue. For the month of XX/XX/XXXX we paid the indicated amount of {$1000.00} because we were still unable to get a hold of them. After numerous failed attempts to reach them via the phone, we submitted an inquiry via their online servicing site on XXXX ( Attachment 1 ) and we made an account on NewRez on XXXX to see their secure message but after logging in we only saw the welcome email that was there and no other email!! We sent another inquiry/complaint on XXXX ( Attachment 2 ) and received a response on XXXX ( Attachment 3 ) saying that the reason we have such a large shortage in the escrow account in the amount of {$2300.00} is due to the additional XXXX  that was included. The new billing statement included the missing XXXX  amount for {$200.00} every month, the current XXXX  of {$200.00} each month, the regular escrow amount of {$190.00} and the principle and interest, thus making our monthly payment {$1000.00} plus a late charge of {$0.00} even though we have never been late on making payments XXXX Attachment 4 ). They have consistently been charging us late fees even though we have never been late on our monthly payments, as it can be seen in the payment history ( Attachment 4 ). 
This would mean that {$400.00} is going towards XXXX  each billing cycle which is outrageous because that would mean that we are paying double towards XXXX  than we are towards our principle balance. After reviewing that message we sent two more inquiries/complaints on XXXX and XXXX ( Attachment 5 and 6 ) requesting them to look over our escrow account again and to apply our monthly payments correctly because they wrongly applied our normal {$610.00} XXXX payment ( Attachment 7 ) to the principle balance for the month of XXXX XXXX Attachment 4 ). They sent a letter stating that we missed our XXXX payment even though we had indicated on the check that this was in fact the payment for XXXX and they were the ones that applied it wrong. We havent heard back since then. The response that was sent on XXXX was also deleted and can no longer be accessed by us ( Attachment 9 ). We no longer feel comfortable speaking on the phone with them because we would prefer a written response that can be saved! We dont trust them to be honest with us over the phone. They have been calling non-stop for the past few weeks but dont leave a voicemail regarding the purpose of the call. This feels extremely predatory and fraudulent. They sent a letter stating that they require a bit more time to review our account ( Attachment 10 XXXX but they did not hesitate to send us a letter stating that we have missing payments and indicated that we may be at risk for foreclosure and that our credit scores will be affected ( Attachment 11 ). We have continued to make regular payments to Shellpoint throughout the pandemic even after losing our jobs, going further by paying more towards our principal balance each month and even during this issue with the escrow accounts in the recent months. Our payment for the month of XXXX ( Attachment 12 ) is not being applied to our account but rather being placed in a separate account. This has put my loan in default and is putting me at risk for foreclosure. Doing a forbearance with Shellpoint is not an option since I can afford to pay my original mortgage amount of {$610.00}. When our loan was sold to Shellpoint in XX/XX/XXXX they sent a letter to us letting us know how much our monthly payments will be and what they money will be applied to ( Attachment 13 XXXX. This statement includes all our loan information and states that our monthly payment will be for {$610.00}, with {$420.00} being applied to the principle and interest and {$190.00} being applied to the escrow account. Shellpoint can not change the contract midway through and harass us regarding missing XXXX  payments that we werent even informed about and did not agree to. We were not provided any information regarding this XXXX  charge prior to this year. We have had our mortgage financed by other companies like XXXX  ( Attachment 14 ), GreenTree XXXX Attachment 15 ), and Ditech XXXX Attachment 16 ) and we had a lower equity on the home with them but have never had such a high PMI payment. We currently have more than 20 % equity on our home, thus according to the Homeowners Protection Act, our XXXX  should be cancelled! Shellpoint is trying to intimidate us by moving our payments to a separate account and making our loan default and ruining our credit scores. I do not trust Shellpoint because they have hundreds of complaints against them ; some of which mirror our struggles.

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