Consumer complaint received 2025-11-05 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
Complaint Title Violation of RESPA 2605 ( e ) Ignored Qualified Written Request and Retaliatory False Default Reporting What Happened On XX/XX/XXXX, I submitted a formal Notice of Error and Final Demand for Correction under 12 C.F.R. 1024.35 to NewRez LLC ( Shellpoint Mortgage Servicing ).

The demand outlined {$12000.00} in unapplied funds and referenced recorded admissions by company representatives acknowledging the misapplication. I attached call transcripts, payment screenshots, and citations to federal statutes. 

The email was sent directly to multiple compliance officers at NewRez and XXXX  XXXX XXXX with copies to CFPB Enforcement, DOJ Civil Fraud, FTC, and VA Oversight ( see attached transmission proof ). 

Despite receiving this RESPA-protected correspondence, the company failed to : 1. Acknowledge the request within five business days as required by 12 U.S.C. 2605 ( e ) ( 1 ) ( A ) ; 2. Investigate and provide a substantive response within 30 business days as required by 12 U.S.C. 2605 ( e ) ( 2 ) ; 3. Correct the unapplied funds or stop false delinquency reporting.

Instead, NewRez generated a boiler-plate customer-service letter that ignored every point raised, then issued a Notice to Cure and foreclosure threat while still holding those funds.

This violates : 12 C.F.R. 1024.35 ( b ) ( 1 ) ( ii ) failure to credit payments as of date received ; 12 U.S.C. 2605 ( k ) ( 1 ) ( C ) duty to maintain accurate account information ; 15 U.S.C. 1692e ( 2 ) ( A ) false representation of debt ; 38 C.F.R. 36.4350 ( c ) VA servicers duty to apply payments promptly.

Evidence Attached 1. Email Final Demand for Correction, Restitution, and Damages Unapplied Funds and False Default Reporting ( XX/XX/XXXX ). 
2. Call transcript ( XX/XX/XXXX ) confirming {$12000.00} admission. 
3. Form customer-service letter dated [ insert date ] non-responsive reply.

4. Payment ledger showing unapplied funds and duplicate entries.

5. CFPB portal screenshots documenting 17 complaints.

6. Letter from XXXX XXXX ( Tennessee XXXX ) confirming state regulatory review. 



XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) XXXX v. XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) XXXX v. XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) Each case confirms that a generic acknowledgment letter fails RESPAs 2605 ( e ) requirements and triggers statutory liability.

Summary for CFPB Review This complaint establishes a clear statutory violation of RESPA 2605 ( e ) and a pattern of predatory servicing practices against a XXXX veteran borrower. The companys continued misrepresentation and failure to apply funds constitute willful non Corporate Connection Between XXXX XXXX and NewRez LLC According to public filings with the XXXX Securities and Exchange Commission, XXXX XXXX XXXX ( XXXX : XXXX  ) explicitly identifies NewRez LLCoperating under the trade name Shellpoint Mortgage Servicingas a wholly owned subsidiary and core revenue-producing segment. In XXXX most recent Form 10-Q and Form 8-K, the company reports mortgage-servicing income, origination fees, and interest spread revenue derived directly from NewRezs operations. Those same filings list XXXX XXXX ( Chairman & CEO ) and XXXX XXXX ( CFO ) as certifying officers under SarbanesOxley Act 302 and 906, attesting that the financial statements fairly present in all material respects the performance of consolidated subsidiaries, including NewRez LLC. XXXX consolidated balance sheet, footnotes, and management discussion further confirm that NewRezs servicing rights, advances, and custodial accounts are recorded as XXXX assets under generally accepted accounting principles ( GAAP ) and materially affect shareholder earnings. 

Therefore, any representation to regulators or consumers that XXXX is not the appropriate company or has no connection to NewRez LLC is demonstrably false. Such statements constitute potential violations of 18 U.S.C. 1001 ( False Statements ), 15 U.S.C. 78j ( b ) and 17 C.F.R. 240.10b-5 ( Securities Fraud ), as well as the Consumer Financial Protection Act, 12 U.S.C. 5536 ( a ) ( 1 ) ( B ), which prohibits deceptive acts in the offering or administration of consumer-financial services. The inclusion of XXXX own SEC-filed 10-Q and 8-K exhibits establishes irrefutable proof of the parent-subsidiary relationship and the flow of financial benefit from NewRezs servicing activity directly to XXXX XXXX and its shareholders.

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