Consumer complaint received 2025-12-18 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: VA

Complaint narrative:
Summary : Newrez ( mortgage owner ) and Shellpoint Mortgage Services LLC ( servicer ) collecting and mishandling tax escrow ; escrow analysis error ( s ) ; failure to functionally or procedurally apply property tax exemption, failure to address formal Notice of Error ( NOE ). 

Imminent Financial Harm : I have remained current for all payments on my mortgage to the present date. My next automated mortgage payment, scheduled for XX/XX/XXXX, continues to be scheduled at an incorrect, inflated amount of {$2600.00} which improperly includes {$140.00} tax escrow I do not owe. 

Justification for Complaint : Servicer is collecting and holding tax escrow not owed. Servicer recognizes borrower 's ( author ) permanent {$0.00} property tax obligation and confirmed permanent {$0.00} property tax obligation with the tax authority. Despite this, servicer claims escrow shortage citing tax refund processing / timing ( surplus funds ) and anticipated future taxes ( error ). Servicer verbally stated borrower must continue to pay tax escrow not owed included with Principal, Interest and Insurance, otherwise partial payment, possible default and / or other negative consequences will be levied. Servicer verbally stated this event would be " beyond their control '' because " their system '' does it automatically. Servicer has demonstrated apathy toward the issue and has not substantially responded to my formal NOE, under the Real Estate Settlement Procedures Act ( RESPA ), Regulation X, in a way outside of " general inquiry ''. Responses received to date generally reiterate previously provided information and include the tax escrow error I am disputing. I do not have confidence the servicer will address or correct these issues without formal oversight. 

Key Events -- XX/XX/XXXX : Shellpoint Mortgage Services LLC, correctly paid the second half of my XXXX property tax. 

XX/XX/XXXX : I provided official documentation demonstrating permanent Virginia XXXX XXXX XXXX XXXX. After follow-up calls to customer service, Newrez / Shellpoint XXXX XXXX document and confirmed {$0.00} obligation with the tax authority XXXX XXXX tax line on the mortgage to reflect {$0.00}. 

XX/XX/XXXX : Newrez / Shellpoint confirms taxes paid on XX/XX/XXXX and states the tax authority has confirmed the funds were disbursed by XXXX, the tax vendor. Newrez / Shellpoint confirms excess amount of {$2200.00} will be refunded. 

XX/XX/XXXX : Newrez / Shellpoint automatically drafts the full, previously scheduled mortgage payment including all property taxes, in the amount of {$2800.00}. 

XX/XX/XXXX : Mailed Formal Notice of Error ( NOE ) notifying Owner / Servicer of tax escrow collection error. NOE provides personal identifying information, loan number, requests correction, describes error ( s ) and legal basis, as well as actions required. Borrower provided two written notices, for posterity, via online website portals, indicating mailed NOEs to both organizations. 

XX/XX/XXXX : Newrez XXXX Shellpoint conducts escrow analysis and adjusts mortgage payment to {$2600.00}. The adjusted figure includes City tax escrow. 

XX/XX/XXXX : Newrez/ Shellpoint correspondence confirms review of account to ensure " escrow accurately reflects a {$0.00} tax obligation ''. Newrez XXXX Shellpoint confirms adjusted tax refund of {$1500.00}, with prorated {$710.00} tax for second half of XXXX. In the same correspondence, Newrez XXXX Shellpoint notes previous mortgage payment of {$2800.00} has been reduced to {$2600.00}, effective XX/XX/XXXX, which still includes anticipated property tax for XXXX. Newrez XXXX Shellpoint further notes monthly payment consists of {$310.00} for escrow, and that in XX/XX/XXXX Newrez / Shellpoint anticipates City tax. Moreover, Newrez XXXX Shellpoint notes the anticipated escrow balance will be - {$480.00} due to anticipated City tax payment. 

XX/XX/XXXX : The City Treasurer 's office issued refund check to Corelogic ( tax vendor ) in the amount of {$1500.00}, check # XXXX. 

XX/XX/XXXX : XXXX tracking, # XXXX, confirms Shellpoint received NOE on XX/XX/XXXX. 

XX/XX/XXXX : In a recorded call to customer service following-up with the NOE, a Newrez / Shellpoint representative named " XXXX XXXX XXXX XXXX XXXX regard to my NOE that " nothing has been done and there is nothing to do because the escrow analysis is already complete. '' I explained the NOE I sent was a result of error in the escrow analysis she referenced and asked her to note the dates they'd received the NOE in my loan file because the servicer is supposed to correct the errors within XXXX working days. 

XX/XX/XXXX : I received written correspondence from Newrez / Shellpoint, indicating they are responding to my " inquiry ''. The response reiterates all previously provided information from XX/XX/XXXX and previous dates. Newrez / Shellpoint recognize my {$0.00} tax obligation, and states after a review of the account they have not identified an error in the escrow analysis. In the same correspondence, Newrez XXXX Shellpoint also reaffirm next scheduled payment of {$2600.00}, which includes payment for tax escrow ( error ). 

XX/XX/XXXX : I called Newrez / Shellpoint customer service to request whether or not my NOE was being treated as an NOE or a 'general inquiry ''. I did not receive an answer to this question. I also asked for the investigation / case file number in regard to the NOE investigation under way. In response to this question, the customer service representative, " XXXX XXXX XXXX, provided a " Task Number '', # XXXX, and elaborated no one at Newrez XXXX Shellpoint will understand what that number is if I call again and provide the task number. He stated, " it is just a number associated to the task in the computer system. '' XXXX informed me Newrez XXXX Shellpoint has not yet received my tax refund from the City Tax authority, but when they do they will conduct a new escrow analysis. He elaborated to the effect of " the way escrow works is that the account will show an escrow shortage until the refund is processed. '' When asked to clarify, in that event, why I am still paying for taxes I do not owe, and Newrez / Shellpoint knows I do not owe, and the tax authority has confirmed I do not owe, XXXX reiterated " that is how the system works. '' XX/XX/XXXX : I sent a written message to Newrez / Shellpoint via online portal, stating the written response ( s ) I received appear to be response ( s ) to a 'general inquiry ' and do not address error ( s ) identified in the NOE. I requested Newrez / Shellpoint to treat the NOE as correspondence under RESPA, Regulation X, and stated treatment of my correspondence as general inquiry is incorrect.

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