Consumer complaint received 2026-01-20 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: FL

Complaint narrative:
SUMMARY Shellpoint Improperly Reduced Escrow When Removing PMI, Causing {$8900.00} Avoidable Shortage DETAILED COMPLAINT : I am filing a complaint against Shellpoint Mortgage Servicing ( NMLS # XXXX ) for escrow account mismanagement that has caused me significant financial harm totaling {$8900.00}. 

LOAN INFORMATION : Shellpoint Loan Number : XXXX Property Address : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX Loan originated : XX/XX/XXXX Loan transferred to XXXX : XX/XX/XXXX WHAT HAPPENED : In XX/XX/XXXX, I requested cancellation of Private Mortgage Insurance ( PMI ) after reaching sufficient equity in my home. Shellpoint approved my request and removed PMI starting with my XX/XX/XXXX payment. 

THE CRITICAL ERROR : When Shellpoint removed my PMI in XX/XX/XXXX, they simultaneously and improperly reduced my monthly escrow collection by the exact amount of the PMI that was removed. 

DOCUMENTED EVIDENCE : According to my monthly mortgage statements from Shellpoint : XX/XX/XXXX Statement : Total monthly payment : {$3600.00} Escrow collection : $ XXXX PMI : Included in payment ( ~ {$270.00} ) XX/XX/XXXX Statement ( after PMI removal ) : Total monthly payment : {$2900.00} Escrow collection : $ XXXX REDUCED BY {$270.00} PMI : {$0.00} REMOVED XX/XX/XXXX Statement : Escrow collection : $ XXXX ( continued at reduced rate ) XX/XX/XXXX Statement : Escrow collection : $ XXXX ( continued at reduced rate ) Current Escrow Balance : {$5600.00} WHY THIS IS IMPROPER ESCROW MANAGEMENT : PMI and escrow are completely separate financial instruments. Removing PMI should have NO impact on escrow collection amounts. 
My homeowners insurance premium was increasing dramatically from approximately {$3500.00} to {$6100.00} for the XXXX policy year. 

Shellpoint should have INCREASED my escrow collection to $ XXXX to properly cover the increased insurance premium and annual property taxes, calculated as : ( {$6100.00} insurance + {$6000.00} taxes ) 12 months = $ XXXX. 
Instead, Shellpoint DECREASED my escrow collection from {$750.00} to {$470.00} - a reduction of exactly {$270.00}, which is precisely the amount of PMI that was removed. 
This created a systematic undercollection of $ XXXX ( {$1000.00} - {$470.00} ) for three months ( XXXX, XXXX, XX/XX/XXXX ), totaling {$1600.00} in undercollected escrow. 

THE RESULTING SHORTAGE : XX/XX/XXXX : When my annual homeowners insurance premium came due ( {$6100.00} ), my escrow account only contained {$5600.00}. Shellpoint paid the insurance premium, creating a negative balance of - {$510.00}. 

XX/XX/XXXX : My loan was transferred to XXXXXXXX XXXX with this negative escrow balance of - {$510.00}. 

XX/XX/XXXX : When my property taxes came due ( {$6000.00} ), XXXX paid them from the escrow account. Combined with the negative balance transferred from Shellpoint, plus the federally required XXXX escrow cushion ( {$2000.00} ), this created a total shortage of {$8900.00}. 

FINANCIAL HARM : As a direct result of Shellpoint 's improper escrow management, I am now experiencing the following financial harm : Current Monthly Payment : {$4200.00} Principal & Interest : {$2400.00} Escrow ( correct amount ) : {$1000.00} Shortage repayment : $ XXXX for 12 months Payment Should Have Been : Approximately $ XXXX Principal & Interest : {$2400.00} Escrow ( if properly managed ) : {$1000.00} Additional Financial Burden : $ XXXX 12 months = {$8900.00} This shortage was entirely avoidable. If Shellpoint had : NOT improperly linked PMI removal to escrow reduction Conducted a proper annual escrow analysis as required by RESPA Increased escrow collection to the appropriate amount when insurance increased Maintained escrow at the previous $ XXXX ( or increased it appropriately ) Then this shortage would not exist, and I would not be paying nearly $ XXXX extra for an entire year. 

RESPA VIOLATIONS : Shellpoint 's actions appear to violate the Real Estate Settlement Procedures Act ( RESPA ), specifically : 12 CFR 1024.17 ( b ) - Failure to conduct proper escrow account analysis 12 CFR 1024.17 ( c ) - Failure to collect amounts sufficient to pay anticipated disbursements 12 CFR 1024.17 ( d ) - Creating an avoidable escrow shortage through mismanagement ADDITIONAL CONCERNS : The fact that Shellpoint reduced my escrow by the EXACT amount of the removed PMI ( {$270.00} ) suggests either : A systematic error in their servicing platform that automatically reduces escrow when PMI is removed, or An intentional practice to keep borrowers ' payments artificially low during the transition, creating shortages that result in higher payments later Either scenario represents serious escrow mismanagement and potential RESPA violations.

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