Consumer complaint received 2025-11-07 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Shellpoint Partners, LLC
State: NY

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX, NY XXXX Phone : XXXX Email : XXXX Date : XX/XX/XXXX RE : Rebuttal to Shellpoint/NewRez Servicing Response Disputed Account History, Escrow Errors, Bankruptcy Violations, and Misapplied Payments Borrower : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX. 
Property Address : XXXX XXXX XXXX, XXXX, NY XXXX To Whom It May Concern : I am submitting this rebuttal in response to the letter provided by Shellpoint/NewRez regarding the servicing of my mortgage loan. After reviewing their response, I dispute several statements, omissions, and inconsistencies that do not reflect the actual history of my loan, my bankruptcy proceedings, or the payments made over the years. This rebuttal outlines the errors and unresolved issues that require further investigation. 
XXXX. XXXX XXXX Was Not Unwound Shellpoint admits the XXXX confirmed cramdown was not unwound. A cramdown that remains in effect must permanently reduce the principal and interest as approved in bankruptcy court. Despite this admission, Shellpoint claims they continue servicing the loan under the original terms, which contradicts their own statement. The current reported principal balance of {$240000.00} in XXXX is inconsistent with the effects of a valid cramdown and nearly XXXX  years of payments. 
XXXX. Improper Increases During Active Bankruptcy Shellpoint does not address why they : Added principal and interest during an active XXXX  XXXX bankruptcy, Increased my monthly payment from approximately {$1000.00} to over {$6100.00}, Demanded an additional {$10000.00} in XXXX during the cramdown, and Changed loan terms without court approval. 

These actions violate the automatic stay, the confirmed XXXX  XXXX plan, Bankruptcy Rule 3002.1, and federal restrictions against modifying loan terms during bankruptcy without court permission.

3. Misapplied Payments and Incorrect Due Date Shellpoint claims the last full payment received was on XX/XX/XXXX, yet also states the account is only paid through XX/XX/XXXX, and the next due date is XX/XX/XXXX. These statements can not logically both be true and point to misapplied payments, potential suspense account activity, or internal accounting errors that artificially exaggerate delinquency.

4. Unexplained Escrow Balance and Shortage Shellpoint reports an escrow balance of {$62000.00} and an escrow shortage of {$24000.00}. These numbers are extremely abnormal for a single-family home and indicate major escrow miscalculations, missing disbursements, or incorrect projections. Shellpoint provides no explanation for how such unusually high deficits occurred, especially during periods where they were receiving trustee payments and the property was under the XXXX program.

5. Incorrect Claim of Incomplete Loss Mitigation Documents Shellpoints statement that they did not receive all required documentation is inaccurate. I submitted complete documentation multiple times via email, fax, and their borrower portal. This pattern of claiming incomplete documents is a known issue and appears to be used to delay or deny proper review.

6. Foreclosure Referral Is Based on Servicing Errors Shellpoint referred my account to foreclosure based on a delinquency that appears to result from their own servicing conduct, including misapplied payments, due date resets, escrow inflation, and improper loan adjustments during bankruptcy. This foreclosure activity should be paused pending a thorough audit.

Requested Actions : I respectfully request : 1. A full forensic audit of the account, including all payment history, escrow activity, trustee disbursements, suspense account activity, and loan adjustments from XXXX. 
2. Correction of the due date, principal balance, interest capitalization, escrow calculations, and any inaccurate credit reporting.

3. Immediate pause of all foreclosure activity until the investigation is complete.

4. Written clarification explaining why payments were not applied correctly, why escrow reached {$62000.00}, why the cramdown terms were not honored, and why loan terms were changed during bankruptcy.

Conclusion : Shellpoints letter does not resolve or meaningfully address the issues raised and contains several contradictions. I respectfully request a complete and accurate review of the account and a corrected response supported by documentation. 

Sincerely, 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