Consumer complaint received 2025-07-17 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: MA

Complaint narrative:
I am submitting a formal dispute regarding inaccurate and noncompliant late payment reporting on my FHA mortgage account with NR/XXXX ( Acct # XXXX ). This account is co-managed with XXXX XXXX, and multiple 30-day delinquencies have been reported specifically for : XXXX, XXXX, and XX/XX/XXXX XXXX, XXXX, and XX/XX/XXXX XXXX and XX/XX/XXXX These late entries do not align with actual payment behavior, Regulation X, FHA servicing protocols, or credit reporting obligations under FCRA. 

Why this reporting must be corrected immediately ( internal compliance basis ) : 1. 30-day lates reported when payment was made XX/XX/XXXX as key example The file shows a {$2500.00} payment received on XX/XX/XXXX, yet XXXX is marked as 30 days late. Thats factually impossible unless the servicer failed to credit the payment timely a violation of 12 CFR 1026.36 ( c ) ( 1 ) ( i ) ( TILA prompt crediting rule ) and FCRA 1681e ( b ) ( requirement to report accurate data ). 

Furthermore, the XXXX balance was updated again on XX/XX/XXXX, confirming activity within the month. Per XXXX XXXX guidance and CFPB bulletins, if a payment is made before 30 days past due, the account can not be reported as 30 days late no exceptions. 

2. Pattern of stale delinquency indicates systemic auto-flagging The account repeatedly shows isolated 30-day lates with no progression to 60 or 90 days, then returns to current immediately after. This fits the CFPBs flagged pattern of " rolling 30-day '' inaccuracies caused by automated reporting systems a known compliance risk.

Servicers who report late entries without escalating delinquency or evidence of missed full-cycle payments are at risk of willful FCRA noncompliance under 1681n. 

3. FHA servicing rules prohibit premature delinquency reporting This is an FHA-insured loan, and the servicer is required to comply with HUD Handbook 4000.1, which states : A mortgage must not be reported as delinquent until the end of the month following the due date, The 15-day grace period must elapse, Borrowers must be provided reasonable opportunity and notice before derogatory reporting.

None of these conditions were satisfied in the periods noted above, and I received no notice of delinquency before reporting began.

4. Violation of advance notice requirement FCRA 1681s-2 ( a ) ( 7 ) At no point prior to the derogatory reporting did I receive the required 30-day written notice informing me that negative information would be furnished to the CRAs. This is a direct violation of FCRA and has been consistently cited by the CFPB as grounds for immediate correction. 

5. Systemic Reporting Failure Not a Consumer Error This is not a consumer performance issue its a servicing/reporting failure : I have paid consistently and in good faith, including the recent XX/XX/XXXX payment ; No full monthly payment has been more than 30 days late based on posting dates ; The reported delinquencies appear to result from either delayed payment processing, system flagging, or failure to issue statements all of which are internal servicer responsibilities.

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