Consumer complaint received 2025-07-08 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
PMI Cancellation Appeal Submission Submitted by : XXXX XXXX XXXX. 
XXXX XXXX XXXX XXXX, CA XXXX Email : XXXX Phone : XXXX Loan Number : XXXX Date : XX/XX/year> To : Shellpoint Mortgage Servicing Attn : PMI Department XXXX XXXX XXXXXXXX XXXX, SC XXXX Email : XXXX Enclosed Documents : 1. Formal PMI Cancellation Appeal Letter ( Updated with Hardship Context ) 2. Estimated Property Valuation Summary 3. Supporting Documentation of Equity and Deferral History Summary : This submission is a formal request to cancel Private Mortgage Insurance ( PMI ) due to reaching a loan-to-value ( LTV ) ratio of approximately 50.7 %. The borrower experienced financial hardship during the COVID-19 pandemic and received official mortgage deferral and forbearance relief. This appeal requests that Shellpoint reconsider its previous denial and evaluate the current equity and borrower standing under 12 U.S.C. 4902 ( a ).

PMI Appeal Response to Denial & Hardship Deferral History XXXX XXXX XXXX. 
XXXX XXXX XXXX XXXX, CA XXXX Loan Number : XXXX Date : XX/XX/year> Shellpoint Mortgage Servicing Attn : Insurance Department / PMI XXXX XXXX XXXX. XXXX XXXX XXXX, SC XXXX Email : XXXX Subject : Formal Response to PMI Cancellation Denial Legal Grounds and Hardship-Based Reconsideration To Whom It May Concern, I am writing to formally respond to the PMI cancellation denial dated XX/XX/year>, for Loan # XXXX. Your notice cited a payment that was sixty ( 60 ) or more days past due within the last two years or thirty ( 30 ) or more days past due within the past year as the basis for denial under the Homeowners Protection Act ( HPA ).

While I acknowledge a history of on-and-off late payments, I respectfully submit that these were directly and exclusively the result of a documented financial hardship during the COVID-19 pandemic. During this period, I experienced a loss of over 50 % of household income due to the mandated closure of my business.

As a result, I formally applied for and was granted hardship deferment and forbearance accommodations from my mortgage servicer. These late payments were not due to neglect or mismanagement, but due to extraordinary national circumstances. I have since worked diligently to recover and have restored my loan to good standing.

Importantly, I am currently in good standing. My principal balance is {$370000.00}, and the fair market value of my home is approximately {$740000.00}, yielding a loan-to-value ( LTV ) ratio of 50.7 %. This reflects a highly favorable equity position and satisfies the core requirements under 12 U.S.C. 4902 ( a ) for borrower-initiated PMI cancellation.

The HPA permits servicers to consider payment history but does not authorize permanent disqualification due to hardship-related delinquenciesparticularly when the borrower has since regained good standing. Additionally, there is no language in my original mortgage agreement that forfeits my right to PMI removal due to past delinquencies.

I am therefore requesting that Shellpoint take into account my full hardship deferral history, equity status, and current standing, and grant immediate PMI cancellation. If necessary, I am willing to cooperate with a property appraisal. If the request is denied, please provide a written response citing the specific legal or contractual authority for continued PMI billing.

If needed, I am prepared to escalate this issue to regulatory authorities, including the CFPB, DFPI, HUD, and the California Attorney Generals Office. 
Thank you for your consideration and continued service. 
Sincerely, XXXX XXXX XXXX. 
















Property Valuation Summary XXXX XXXX XXXX XXXX XXXX, CA Prepared for : XXXX XXXX XXXX. 
Date : XX/XX/year> Estimated Market Value : XXXX : {$750000.00} XXXX  : {$740000.00} Average Estimate : {$740000.00} Loan Details : Principal Balance : {$370000.00} LTV : 50.7 % Conclusion : This valuation confirms eligibility for borrower-initiated PMI cancellation under federal law.

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