Consumer complaint received 2020-11-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC
State: OK

Complaint narrative:
NewRez dba Shellpoint Mortgage assumed my mortgage from Ditech Mortgage whom filed Ch. XXXX, upon assumption I contacted Shellpoint in XX/XX/XXXX regarding my loan and the handling of the hazard warranty policy as it was time for renewal which previously Ditech had carried a lender placed Hazard policy on. I was advised by a Shellpoint Warranty representative that due to the 'type ' of loan, hazard insurance was not available through Shellpoint and I would need to provide proof of coverage within 30 days. I secured the coverage in XX/XX/XXXX via XXXX XXXX / XXXX and sent via email, mail, and fax proof of coverage to Shellpoint. I spoke again with Shellpoint warranty to confirm receipt of policy, which was validated by their representative and confirmation via letter in the mail. My call was forwarded to Customer Service to submit a request to remove the escrow from my account. As I have explained to Shellpoint XXXX - XX/XX/XXXX payments made did include an additional payment of {$51.00} to Ditech Mtg. at the time, until its expiration, Ditech did hold a vendor placed policy for insurance. Once the loan was assumed and I secured my own policy in XXXX, I reduced my payment to that of the principal only due {$420.00} as 'escrow ' was no longer valid to collect. This would be the first of now over 30+ calls, emails, letters to NewRez and Shellpoint since in attempt to get my loan and account information corrected. Following each call I receive a generic ' we are reviewing your request ' letter in the mail from Shellpoint, but no action. It is now 9 months after the loan assumption and nothing has been done to correct this error on behalf of Shellpoint. My Principal payment due of the loan is {$420.00}, I have been making those payments on time every month since XXXX to all various lenders who have assumed the original note. It is now, that the account is with NewRez-Shellpoint there is a problem. With each payment I send in proof of insurance coverage along with request that the escrow please be removed. Because my payment does not match total due in their 'system ' the payments are held in an 'unapplied ' account and not being posted until well after the due date often 15-25 days past their receipt, to which Shellpoint is ALSO then applying late fees on the account each month. In addition, this loan has a 9.5 % interest rate per day on unpaid balance. My loan balance due has not been calculated correctly due to the misapplication of payments. This I have also brought to the attention of NewRez and Shellpoint on multiple occasion that there is a misappropriation of payments and funding is overall affecting my net balance due on the loan due to daily interest. In XX/XX/XXXX, Shellpoint sent a letter they had acquired a Hazard Insurance Policy on my loan and there was an escrow balance due of {$590.00}, This was a month PAST Shellpoint being supplied proof that coverage already existed and their acknowledgment of receipt. I have re-iterated on multiple occasion that I do not want Shellpoint obtaining any such coverage on my behalf due to the amount of incompetence shown by not addressing my account concerns in the past 9 months. Hazard insurance will be provided by annually myself via XXXX insurance going forward. Within a few weeks of that phone call I then received a check from Shellpoint /XXXX for the amount I had paid for my policy less my credit card transaction fees, to which I returned a check to Shellpoint noting for Escrow Refund only in BOLD. Again, Shellpoint misapplied this to my loan account as a regular payment, it took over a month and multiple phone calls to get this reversed internally in their system. I continue to make my principal balance due payment each month, less the erroneous late fees and escrow fees applied by Shellpoint. I have called monthly since Shellpoint assumed the mortgage in attempts to resolve and gotten absolutely no where. I've asked to speak with a Supervisor in both Warranty and Customer Service and advised there are none. I've asked customer service for the NewRez Corporate mailing address and legal contact or a Managers name there and was advised they don't know or have access to that information. I've escalated on my own by research to identify NewRez corporate office and by mailing my documentation direct to NewRez to review and respond, which to date has went unanswered by their company. I advised in my last mail correspondence that I would be seeking other assistance to resolve this matter, and now here we are. I have filed a complaint with the XXXX and now filing with your organization of Consumerfinance.gov as well. Lenders should not be able or allowed to take advantage of their patrons. NewRez dba Shellpoint is a dishonest company in their business practices and handling of Mortgages, they should be held accountable. Nine months of this back and forth nightmare for any one person to try and resolve what should be a simplistic matter as Proof of Insurance coverage was long ago provided. I have afforded more than ample time to correct a clerical error made by this company. As of my last communication with them on XXXX XXXX, XXXX advising this has been an issue since XX/XX/XXXX ... .. I received letter via mail that 'they are reviewing my concerns and will advise '. I now have about 15 of the same generic letters I have received by them - yet no action on their behalf to correct their mistake. The handling of my account and communication ( or lack of ) from Management down by this organization and its internal representatives is unacceptable.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation