Consumer complaint received 2026-06-29 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: TX

Complaint narrative:
Company : Newrez LLC Issue : Mortgage Servicing Improper Escrow Administration and Property Tax Payment I am submitting this complaint regarding Newrez LLC 's handling of my mortgage escrow account and its administration of my property taxes despite having notice of my pending 100 % XXXX Veteran homestead exemption. I am a 100 % XXXX XXXX XXXX XXXXXXXX veteran and qualify for a full property tax exemption on my primary residence under XXXX law. On XX/XX/year>, after receiving notice of a mortgage increase, I submitted my application for the 100 % XXXX Veteran Residence Homestead Exemption to the XXXX XXXX XXXX XXXX with all required supporting documentation. That same day, I provided Newrez with documentation from the Department of Veterans Affairs verifying my XXXX status and notified the company that my exemption application had been filed. I was informed by the XXXX XXXX XXXX XXXX that processing the exemption could take approximately twelve weeks. After notifying Newrez of my pending exemption, I specifically requested that the company consider it when administering my escrow account and refrain from increasing my monthly mortgage payment based on property taxes that were expected to be eliminated once the exemption was processed. I also informed Newrez that the processing timeline was outside of my control and requested that no adverse action be taken while the exemption was pending. Without notifying me beforehand, Newrez paid the property taxes from my escrow account. I first became aware that the property taxes had not been paid only after I received a notice from Newrez that my escrow account showed a shortage and that my monthly mortgage payment would increase as a result. Until I received the escrow analysis and the payment increase, I was unaware that Newrez had already disbursed the property tax payment. Upon learning of the escrow shortage and increased mortgage payment, I immediately contacted Newrez to dispute the escrow analysis. I explained that the escrow shortage existed only because property taxes had been paid while my exemption application was still pending and that I should not be held financially responsible for an escrow deficiency created under these circumstances. I also submitted written correspondence requesting that Newrez immediately review and correct the escrow shortage, confirm receipt of my exemption documentation, and refrain from increasing my monthly mortgage payment while the exemption remained pending. As of XX/XX/year>, I again contacted Newrez regarding the mortgage payment due on XX/XX/year>. During that conversation, I made it clear that the XXXX payment amount was unacceptable because it was based on an escrow shortage that was not the result of any action or omission on my part. I reiterated that I had timely provided all required documentation to both the XXXX XXXX XXXX XXXX and Newrez and that the shortage resulted solely from property taxes being paid while my exemption was still being processed. In response, Newrez conducted a second escrow analysis. Although this revised analysis reduced my monthly mortgage payment effective XX/XX/year>, it did not resolve the underlying dispute or eliminate the escrow shortage created by the property tax payment. The revised escrow analysis reduced the future payment amount beginning in XXXX while continuing to require me to absorb an escrow shortage that I believe should never have existed. While I appreciate that Newrez performed another escrow analysis, this action did not address the central issue. The escrow shortage remains due to property taxes, which are expected to be eliminated once my 100 % XXXX Veteran exemption is finalized. I believe Newrez 's response addressed only the payment amount, not the underlying servicing issue. I believe Newrez failed to exercise reasonable care in administering my escrow account by : * Paying property taxes from my escrow account without notifying me beforehand. * Failing to adequately consider the documentation of my pending 100 % XXXX Veteran homestead exemption before making the tax disbursement. * Creating an escrow shortage based upon taxes that are expected to be exempt under XXXX law. * Failing to adequately investigate or resolve my dispute after I notified the company that the escrow shortage resulted from a pending statutory exemption. * Continuing to hold me financially responsible for an escrow shortage that arose through no fault of my own. Requested Resolution I respectfully request that Newrez : 1. Suspend collection of the disputed escrow shortage until the XXXX XXXX XXXX XXXX completes processing of my 100 % XXXX Veteran homestead exemption. 2. Correct my escrow account once the exemption is finalized by eliminating the escrow shortage created by the payment of exempt property taxes. 3. Refund any excess amounts collected as a result of the erroneous escrow shortage and conduct a final escrow analysis reflecting the approved exemption. 4. Waive any late fees, penalties, default-related charges, or other servicing fees associated with this dispute. 5. Ensure that no negative credit reporting occurs as a result of this disputed escrow shortage and correct any adverse reporting that may have already occurred. 6. Provide a written explanation detailing : * Why did Newrez pay my property taxes without prior notification to me? * Why was I not notified before the escrow funds were disbursed? * What policies or procedures were followed in administering my escrow account under these circumstances? My objective is not to avoid my mortgage obligations. Rather, I seek a fair resolution that ensures I am not required to bear the financial consequences of an escrow shortage caused by property taxes that should ultimately be eliminated through my lawful 100 % XXXX Veteran homestead exemption. I acted promptly by submitting all required documentation, notifying Newrez well in advance of my pending exemption, and disputing the escrow shortage as soon as I became aware that the property taxes had been paid. I respectfully request that Newrez correct its handling of my escrow account and restore my account to the position it would have been in had my pending exemption been properly considered before the tax payment was made.

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