Consumer complaint received 2026-06-17 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Loan sold or transferred to another company
Company: Shellpoint Partners, LLC
State: NY

Complaint narrative:
XXXX. Unsolicited Loan Modification During the XXXX Pandemic ( XX/XX/XXXX ) In or about XX/XX/XXXX, I was offered a loan modification by the mortgage servicer, NewRez/XXXX, despite the fact that I had not applied for or requested XXXX. This occurred during the earliest months of the XXXX pandemic. At that time, I was employed in New York XXXX, but my employer was completely shut down as a result of the pandemic. I was left without income and was denied unemployment benefits. Because of those circumstances, I was unable to take advantage of the offered loan modification. In addition, the servicer did not place the loan into any pandemic-related forbearance program. Instead, interest, late fees, and other charges continued to accrue. I only recently became aware that the loan balance may have been improperly inflated as a result. I raise this issue because, during subsequent attempts to obtain a loan modification, I was repeatedly informed that I had already used my XXXX opportunity for a loan modification. That statement is incomplete and misleading. The XXXX modification was unsolicited, was offered during a period of unprecedented economic hardship, and was not realistically available to me under the circumstances. Based upon these facts, I believe a review and adjustment of the loan balance is warranted. XXXX. CFPB Complaint, Servicer Day Modification, and XX/XX/XXXX Property Disaster In XX/XX/XXXX, I filed a complaint with the CFPB. That complaint remains open. I recently reviewed XXXX XXXX response and was surprised to see XXXX claim that it was not the proper party to address the issues raised, despite the fact that XXXX had been servicing my mortgage since approximately XXXX. In XX/XX/XXXX, my attorney received an unsolicited call advising that my loan had been selected for a program referred to as " XXXX XXXX. '' During that call, representatives specifically asked what amount I could afford to pay and when I could begin making payments. I advised that I could afford approximately {$24000.00} and could begin making payments on XX/XX/XXXX, although it would be difficult to begin sooner due to my ongoing divorce proceedings. The representative responded, " Okay, '' and no further discussion occurred. After that conversation, neither my attorney nor I received any further communication until XX/XX/XXXX. On that date, my attorney received a letter by email. No correspondence was sent directly to me, to the property, or to any alternate address. The communication referenced a letter dated XX/XX/XXXX, stating that a loan modification had been approved with a monthly payment of approximately {$2900.00} and that the first payment was due XX/XX/XXXX. However, neither my attorney nor I actually received notice of this modification until XX/XX/XXXX, after the stated due date had already passed. Only XXXX days later, on XX/XX/XXXX, a catastrophic plumbing failure occurred at my property and throughout the surrounding neighborhood. Approximately XXXX homes were affected. Due to extremely cold temperatures, reportedly the coldest XXXX experienced in over XXXX XXXX years in this area of New York, the plumbing failure caused a pressurized sewer backup that forced sewage into my basement. The damage was so severe that the home was effectively rendered uninhabitable. My mother and I were forced to obtain a high-interest loan and spend approximately {$24000.00} to mitigate the damage. At the time, I believed hazard insurance was in place. However, the insurance company would not process the claim and would not clearly explain why. Despite these circumstances, I remained prepared to make the XXXX payment required under the modification. Beginning on XX/XX/XXXX, and continuing through XX/XX/XXXX, I repeatedly contacted XXXX in an effort to make payment. During each call, I was told that the account was not set up to receive payments. I was informed that payment could not be accepted through the website, by phone, or through ordinary servicing channels. Representatives repeatedly transferred me to various departments and indicated that the account required research. Although I was actively attempting to make the required payment, the servicer ultimately closed the loan modification on or about XX/XX/XXXX. I do not understand how I could have complied with the modification terms when the servicer 's own systems would not accept payment. Based upon my experience, it appeared that I was placed into a modification program while simultaneously being denied a practical means of making the required payments. Additionally, I have identified federal guidance indicating that homeowners affected by natural disasters may be entitled to forbearance or other mortgage assistance. Given the catastrophic plumbing and sewer event that rendered my home uninhabitable, I do not understand why no similar accommodation was offered or applied in my case. XXXX. XXXX XXXX XXXX XXXX and Missing Insurance Coverage For many years, approximately {$4300.00} per year has been advanced through my escrow account for hazard insurance on this property. The loan servicing has since transferred from XXXX to Shellpoint, although NewRez continues to appear throughout the account records and customer portal. I do not fully understand NewRez 's continuing role, as documents continue to appear as having been transferred or forwarded from a prior servicer. Upon reviewing the insurance records available through the customer portal, I discovered that there appear to be no hazard insurance binders or policy records after XXXX. On XX/XX/XXXX, I contacted Shellpoint 's insurance department directly. During that conversation, I was advised that the company had confirmed there had been no active hazard insurance policy on the property since XXXX. I was further advised that Shellpoint was placing a policy effective XX/XX/XXXX. The representative also advised that I should seek a balance adjustment for escrow funds that had been collected and advanced for hazard insurance during the years in which no policy appears to have existed. I was instructed to address that issue with the servicing department. Because an auction sale is currently scheduled, I have not yet been able to fully address this issue with servicing. XXXX. Discrepancies in the Loan Balance and Foreclosure Judgment For years, XXXX represented that I owed substantially more than the amount that now appears to be reflected in the servicing records. The amount claimed in the foreclosure action has never appeared mathematically accurate to me. As recently as approximately XXXX month ago, I was being told that more than {$570000.00} was owed. However, on XX/XX/XXXX, I requested a payoff statement from Shellpoint. During that process, I was informed that the balance transferred from the prior servicer and reflected as the amount due in full was approximately {$290000.00}. This discrepancy raises serious concerns. If the actual balance is approximately {$290000.00} rather than more than {$570000.00}, then the foreclosure judgment may have been calculated using incorrect figures. It also means that substantial equity exists in the property and that refinancing opportunities may have been available long before the foreclosure reached its current stage. Had accurate balance information been provided, I would have pursued available options to resolve the default and preserve the property. I respectfully request a full accounting and reconciliation of the loan balance, the foreclosure judgment amount, escrow advances, fees, and all servicing transfers. XXXX. Active Loss Mitigation and Pending Foreclosure Sale When I log into the customer portal and navigate to the Loss Mitigation section, a prominent notice states that I have an active loan workout package in place. Despite that representation, the current servicer, Shellpoint, and the foreclosing attorneys have refused to cancel the foreclosure auction, which is currently scheduled to occur in approximately XXXX days. I have repeatedly raised concerns that this situation constitutes impermissible dual tracking. Additionally, I have received correspondence from the prior servicer confirming that my application was accepted for review, that valuation was being ordered, and that the review process remained active. Further supporting this point, the appraisal associated with the loss mitigation review was uploaded into the current servicer 's portal on Monday of this week. Nevertheless, supervisors at Shellpoint have repeatedly stated that there is " not enough time '' to cancel the foreclosure sale. The continued pursuit of foreclosure while the customer portal reflects an active workout package, while loss mitigation documents remain under review, and while appraisal activity continues raises serious concerns regarding compliance with applicable mortgage servicing and loss mitigation requirements. I am requesting an immediate review of these issues and an immediate suspension of the scheduled foreclosure sale while the account is properly audited and all pending loss mitigation matters are resolved.REQUEST FOR RELIEF Based upon the facts outlined above, I respectfully request that the Consumer Financial Protection Bureau, the Department XXXX XXXX XXXX, the Office of the Attorney General, and any other appropriate regulatory or oversight agencies conduct a full investigation into the servicing, loss mitigation, escrow administration, insurance administration, and foreclosure practices associated with this loan. Specifically, I request the following relief : XXXX. Immediate Suspension of Foreclosure XXXX I request the immediate postponement, cancellation, or suspension of the foreclosure auction currently scheduled for XX/XX/XXXX, pending a full review of the servicing history, loss mitigation history, escrow accounting, insurance accounting, and payoff calculations associated with this loan. Given the existence of an active workout package reflected in the servicer 's own customer portal, the recent appraisal activity associated with loss mitigation review, and the unresolved disputes concerning the loan balance and escrow administration, allowing the foreclosure sale to proceed before these issues are investigated would create the risk of irreparable harm. XXXX. XXXX XXXX XXXX and XXXX I request a complete loan-level accounting from the date servicing began through the present, including but not limited to : - All principal balances. - All interest accruals. - All late fees. - All corporate advances. - All escrow advances. - All attorney fees and foreclosure costs. - All property inspection fees. - All broker price opinion fees. - All appraisal fees. - All suspense account activity. - All unapplied funds. - All servicing transfer adjustments. - All force-placed insurance charges. - All escrow analyses. - All loss mitigation calculations. I further request that the servicer identify every adjustment made to the account following each servicing transfer and explain any discrepancies between balances reported by prior servicers and balances reported by the current servicer. XXXX. Investigation of the XXXX Loan Modification and XXXX XXXX XXXX I request an investigation into the unsolicited loan modification offered in XX/XX/XXXX during the earliest months of the XXXX pandemic. Specifically, I request a determination as to : - Why a loan modification was offered without an application. - Whether any pandemic-related relief options should have been offered or applied. - Whether any XXXX XXXX or pandemic-era protections were available but not implemented. - Whether interest, fees, and charges continued to accrue in a manner inconsistent with available relief programs. - Whether the XXXX modification was later used improperly to deny or limit my eligibility for future loan modifications. If errors occurred during this period, I request that the account be corrected and any improperly assessed amounts be removed. XXXX. Investigation of the XX/XX/XXXX Through XX/XX/XXXX Loss Mitigation Process I request an investigation into the loan modification process initiated after the XX/XX/XXXX " Servicer Day '' communication. Specifically, I request a determination regarding : - Why communications were directed to my attorney rather than to me. - Why the XX/XX/XXXX modification notice was not received until XX/XX/XXXX, after the first payment due date had already passed. - Whether proper notice requirements were satisfied. - Whether the servicer provided a reasonable opportunity to accept and perform under the modification. - Why the account allegedly could not accept payments when I repeatedly attempted to make them between XX/XX/XXXX and XX/XX/XXXX. - Whether the modification was improperly terminated despite my documented attempts to perform. If it is determined that the modification was improperly denied, improperly closed, or otherwise mishandled, I request that the servicer be required to restore the modification review process and correct any resulting damage to the account. XXXX. Investigation of XXXX XXXX XXXX Charges and Missing Coverage I request a complete investigation into the collection and disbursement of hazard insurance escrow funds. Specifically, I request a determination regarding : - Whether hazard insurance actually existed on the property between XXXX and XX/XX/XXXX. - What policies, if any, were in force during that period. - Who received the escrow disbursements collected for hazard insurance. - Whether premiums were paid. - Whether any policies were canceled, expired, or never procured. - Whether escrow funds were improperly collected or disbursed. If it is determined that hazard insurance did not exist during periods in which escrow funds were collected for that purpose, I request a complete accounting and reimbursement of all improperly charged amounts, together with any corresponding interest, fees, and charges that were assessed as a result. XXXX. Investigation of the Reported Loan Balance and Foreclosure Judgment Amount I request an investigation into the substantial discrepancy between the amounts reported by the servicer over the years and the balance recently provided by the current servicer. Specifically, I request a determination regarding : - Why balances exceeding approximately {$570000.00} were repeatedly represented as owed. - How the current transferred balance due in full is reported as approximately {$290000.00}. - Whether errors exist in the foreclosure judgment calculations. - Whether escrow advances, fees, costs, or other charges were improperly assessed. - Whether inaccurate payoff information prevented me from pursuing available refinancing, settlement, reinstatement, or repayment options. If errors are identified, I request that all records be corrected and that any foreclosure judgment obtained using inaccurate figures be reviewed and adjusted accordingly. XXXX Review of Potential XXXX XXXX Violations I request an investigation into whether the servicer and foreclosure counsel violated federal mortgage servicing regulations by continuing foreclosure activity while loss mitigation activity remained pending. Specifically, I request a determination regarding : - The active workout package reflected in the customer portal. - The recent appraisal activity associated with loss mitigation review. - Prior correspondence confirming that the application had been accepted for review. - The decision to continue foreclosure activity despite ongoing review activity. If violations are identified, I request that all foreclosure activity be halted until the loss mitigation process is fully completed and any resulting servicing errors are corrected. XXXX Review of Disaster-Related Assistance Eligibility I request a determination as to whether the catastrophic XX/XX/XXXX sewer and plumbing event qualified me for any disaster-related mortgage relief, forbearance, loss mitigation protections, or other homeowner assistance programs. If such protections were available and were not offered or applied, I request that the servicer be required to review and correct the account accordingly. XXXX. Preservation of Records Finally, I request that all servicing records, call recordings, account notes, payment histories, loss mitigation records, escrow records, insurance records, foreclosure records, correspondence logs, servicing transfer records, appraisal records, and internal communications relating to this loan be preserved pending investigation. Given the number of servicing transfers, disputed balances, and unresolved issues identified above, preservation of these records is necessary to ensure a complete and accurate review.

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