Consumer complaint received 2025-10-25 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
NOTICE OF ERROR ESCROW OVERCOLLECTION AND SURPLUS MISAPPLICATION Date : XX/XX/XXXX Borrower : XXXX XXXX XXXX Loan Number : XXXX Property Address : XXXX XXXX XXXX XXXX XXXX XXXXXXXX Servicer : Shellpoint Mortgage Servicing Servicer Contact : XXXX CFPB Complaint References : # XXXX and # XXXX Subject : Formal Notice of Error Pursuant to 12 C.F.R. 1024.35 ( RESPA ) Dear Shellpoint Compliance Department, I am submitting this Final Notice of Error regarding the mishandling of my escrow account, misapplication of surplus funds, and continuing overcharges following the transfer of my loan from XXXX XXXX to Shellpoint Mortgage Servicing.

1. Escrow Overcollection and Surplus Misapplication Your most recent Escrow Analysis ( dated XX/XX/XXXX ) acknowledges a {$3600.00} surplus in my escrow account. Despite this, Shellpoint continues to collect escrow payments at inflated rates ( {$1000.00} monthly ) rather than the adjusted amount of {$850.00}, as reflected in your own analysis.

While I understand that my account is currently five months past due, that delinquency resulted primarily from ongoing escrow overcharges and Shellpoints failure to correct the inherited miscalculations from XXXX XXXX. Under 12 C.F.R. 1024.35 ( b ) ( 5 ), the servicers failure to properly apply escrow funds or adjust payments based on accurate tax obligations constitutes a servicing error.

2. Improper Escrow Disbursement Practices Shellpoint has continued to project inflated tax disbursements of {$10000.00} annually, even though actual property tax obligations have been substantially lower. As a result, my escrow account balance has been artificially reduced, masking the true surplus and creating the appearance of delinquency where none should exist.

This pattern directly violates 12 C.F.R. 1024.17 ( f ), which limits escrow collection to amounts sufficient to cover anticipated disbursements plus one-sixth of the annual total. The consistent collection of excess funds, without timely refund or application to principal or arrears, is non-compliant with federal servicing requirements.

3. Request for Immediate Corrective Action I am requesting the following : A full, written correction of my escrow account to reflect the true tax obligations and the accurate monthly escrow amount of {$850.00}.

Immediate application of the {$3600.00} escrow surplus toward my past-due principal and interest balance.

A written explanation of how and when the surplus will be applied or refunded.

A temporary halt on any further payment increases or account adjustments until this matter is corrected and I receive a written response under 12 C.F.R. 1024.35 ( e ) ( 3 ) ( i ) ( C ).

4. Supporting Documentation Enclosed are copies of : Shellpoints Escrow Analysis ( XX/XX/XXXX ) Escrow Transaction History showing consistent overcollection XXXX XXXX  rate adjustment notice ( XX/XX/XXXX ) Prior correspondence and CFPB complaint summaries 5. Notice and Compliance Request This letter constitutes a qualified written request and notice of error under Regulation X ( 12 C.F.R. 1024.35 ). You are required to acknowledge receipt within five ( 5 ) business days and provide a written resolution or correction within thirty ( 30 ) business days.

I request that all collection activity, account adjustments, or payment increases be suspended during your investigation of this matter. 
Sincerely, 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