Consumer complaint received 2025-08-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
Qualified Written Request & Notice of Error XXXX XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX Loan # XXXX Date : XX/XX/XXXX Shellpoint Mortgage Servicing Attn : Customer Service XXXX XXXX XXXXt XXXX. XXXX XXXX XXXX, SC XXXX RE : Qualified Written Request and Notice of Error Under XXXX Loan # XXXX To Whom It XXXX Concern, I am writing to formally submit this letter as both a Qualified Written Request ( QWR ) and a Notice of Error under the Real Estate Settlement Procedures Act ( RESPA, XXXX XXXX. XXXX ( XXXX ) ), and its implementing regulation Regulation X ( XXXX XXXX. XXXX and XXXX ), regarding the servicing of my mortgage loan referenced above. 



This letter serves as a demand for immediate correction of significant servicing errors, and a formal request for documentation and explanation concerning the gross mismanagement of my escrow account and loan payment history. 



Misapplication of XX/XX/XXXX XXXX XXXX XX/XX/XXXX, I submitted a mortgage payment in the amount of {$3000.00}, nearly identical to my full monthly obligation of {$3000.00}. Instead of holding this payment in suspense per XXXX  until a full payment was available, XXXX XXXX improperly rerouted these funds into categories labeled Escrow Only and Unapplied Payment, and subsequently withheld their application to my mortgage arrears. This violates standard servicing protocol and demonstrates bad faith conduct. 

I have been attempting to have this corrected from the time my loan was sold to Shellpoint in XX/XX/XXXX, with no assistance whatsoever. Shellpoints actions have contributed directly to the worsening of my account status which stands at XXXX months behind as of XX/XX/XXXX. 



Fabricated XXXX Entry XX/XX/XXXX Your XXXX  Analysis dated XX/XX/XXXX includes a disturbing and likely unlawful representation. On page XXXX, under XXXX Account XXXX, you show a transaction dated XX/XX/XXXX in the amount of {$3400.00} which appears as if it had already occurred. 



This is not only factually false ( as the month of XXXX had not occurred when the analysis was created ), but also contradicts my XXXX XXXX XXXX, which contains no such deposit, refund, disbursement, or payment around that time. 



There is no identifiable source for this entry no insurance reimbursement, borrower payment, assistance program, or surplus transfer. It is a phantom transaction used solely to artificially inflate the escrow balance and justify your refusal to return or apply my surplus of {$3600.00}. 



Violations and Bad Faith Practices These actions collectively represent : - A clear violation of XXXX, including XXXX ( b ) ( XXXX ), ( b ) ( XXXX ), and ( b ) ( XXXX ) relating to failure to apply payments, inaccurate escrow balances, and improper imposition of charges ; - A likely violation of the XXXX XXXX XXXX XXXX XXXX XXXX  ) through the presentation of materially false account information ; - A XXXX  of industry-standard servicing practices ; - And what I believe to be an intentional act of bad faith, using deceptive recordkeeping and manufactured numbers to deny me relief and push me further toward foreclosure. 

Your own records are internally inconsistent. The XXXX XXXX XXXX shows actual transactions occurring in XXXX. Yet the XXXX XXXX invents a new story for XXXX with numbers that do not match any real financial activity. This contradiction alone raises serious compliance and ethical concerns. 



These practices have caused me financial, emotional, and legal harm. They have left me in a vulnerable state, despite having made multiple good faith efforts to cure my delinquency including payments that Shellpoint rejected or misapplied without proper notice, reasoning, or remedy. 



Demands Pursuant to my rights under XXXX  and XXXX XXXX I demand : XXXX. A full and itemized transaction history for my mortgage loan from Shellpoint 's servicing start date to present, including all payments received, applied, held in suspense/unapplied, or returned. 

XXXX. A detailed explanation of the source, authorization, and justification for the {$3400.00} XX/XX/XXXX XXXX  entry. 

XXXX. A corrected XXXX analysis removing all improperly dated or fabricated entries. 

XXXX. An immediate reconsideration of the {$3600.00} XXXX  surplus, and application of those funds to bring my loan current. 

XXXX. A written response within XXXX business days acknowledging receipt of this XXXX  and a substantive response within XXXX business days, as required by XXXX XXXX. XXXX ( XXXX ) and XXXX ( d ). 



Additionally, I am concurrently filling a complaint with the Consumer Financial Protection Bureau ( CFPB ), and the California Department XXXX XXXX XXXX XXXX XXXX, If these matters are not corrected promptly, I will seek legal action including a potential suit for servicing violations and equitable relief. 

Final Warning This letter puts you on notice : these errors are no longer hidden. You are now under a legal obligation to correct them. 

I expect a prompt, thorough, and transparent response. 

Sincerely, XXXX XXXX XXXX This is a supplemental notice to my Qualified Written Request and Notice of Error dated XX/XX/XXXX. 

Upon further review of your XX/XX/XXXX escrow analysis, I must call attention to a further deceptive practice : the inclusion of a XX/XX/XXXX disbursement in the section labeled Escrow Account History. Although this line item carries an XXXX to designate it as an estimate, placing it in a section explicitly labeled as historical is misleading and creates the false impression that the payment already occurred. 

This fabricated disbursement is then improperly used to suppress my reported surplus and deny return or application of {$3600.00}. 

I reiterate my demands as set forth in my original letter and reserve all rights under XXXX XXXX XXXX statutes, and state and federal consumer protection laws. 



Sincerely, XXXX XXXX XXXX XXXX # : XXXX

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