Consumer complaint received 2025-09-05 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: IL

Complaint narrative:
In XX/XX/XXXX NewRez ( Shellpoint Mortgage Servicing ) improperly paid the first installment of my XXXX property taxes without my authorization. The tax bill was due XX/XX/XXXX, but on XX/XX/XXXX NewRez/XXXX paid it 10 days early, leaving me no chance to pay it myself as I was obligated to do under my closing documents. At closing my property taxes were not escrowed. I was responsible for paying taxes directly, with the seller reimbursing me.

When I discovered this, I called NewRez immediately and told them they had made a mistake and must not pay it. I explained my mortgage does not include escrowed property taxes. They told me I was wrong, insisted it was correct, and refused to stop payment. I told them that if they went ahead, I would not reimburse them because this was not in my contract. They said it didnt matter, but would look into it. I also told them I was working with my titling company and the seller to handle the tax reimbursement, which was the proper contractual arrangement, but they did not care. They told me they would start research but while that was supposedly pending they still disbursed the funds. I made it absolutely clear that this was an error, and that if they paid it before I could, then I would not pay them back, as I am not contractually obligated to.

I called weekly after that. At first, an employee admitted it was an error on their end ( they reviewed my mortgage documents and it clearly shows that property taxes are NOT in escrow ) but said since they had already paid, I was required to pay them back. I disagreed. They then shifted their story, saying they paid because the tax was delinquent. That was false, because they paid 10 days early, before I could even pay it. They repeatedly asked if I had attempted to pay it. I explained that was impossible once they had already paid it. They told me to wait 28 days for further review.

About two weeks later, I received an escrow analysis letter in the mail. It said my monthly payment would rise from about {$560.00} to about {$980.00}, effective in two months, because of the property-tax disbursement. The analysis even admitted that they had not expected to pay taxes, but did so anyway, which created the increase. I called and was told to be patient because the research would finish before the new payment took effect. This stressed me out immensely, but I did as I was told by NewRez.

When the research was complete, instead of a correction, I got a letter dated XX/XX/XXXX. In it, NewRez claimed the tax lines are correct and stated XXXX would pay the second installment of XXXX property taxes of {$4100.00} within the economic loss date. They also said they had asked the county treasurer if a refund was possible and asked me to forward them any information I had about a refund. This was contradictory, as, if everything was correct, why would they be seeking a refund from the county treasurer? The letter completely ignored my repeated demands to remove the unauthorized escrow line, restore my escrow account for flood insurance ( about {$1000.00} ), and return my monthly payment to the correct amount. The only comment they made is an acknowledgement that I 'believe ' those things to be true, with no further statements of actions on their part.

I then contacted my titling company, who confirmed in writing that property taxes were never escrowed in my loan documents. They provided me documentation that proved NewRez had no authority to establish a tax escrow or disburse these funds. 

On XX/XX/XXXX, I mailed a certified Notice of Error and Request for Information under RESPA to NewRezs designated address. It was delivered and signed for on XX/XX/XXXX at XXXX XXXX. That letter demanded that NewRez stop disbursing taxes, remove the tax escrow line, restore escrow for flood insurance, return my monthly payment to the proper ~ {$560.00}, and provide me full escrow records, XXXX  instructions, internal servicing notes, and call recordings. ( Those call recordings include a call where multiple NewRez customer representatives fully admit that this was clearly the companies fault, not mine, and that they just don't know how to resolve it as their system will not allow them to remove the escrow line without it being paid off, but obviously I never agreed for them to pay it or make debt in my name, so I can't pay it, so they were in a stand-still trying to figure out how to fix this. In the end of that conversation, they scheduled even more research, which is what lead to the XX/XX/XXXX letter. ) Despite being legally required to acknowledge my letter within 5 business days ( by XX/XX/XXXX ), NewRez has not sent me any acknowledgement or response as of XX/XX/XXXX. As of XX/XX/XXXX, my escrow account still shows a false balance of {$2800.00}, when it should be about + {$1000.00}, and my account still shows a monthly payment due of ~ {$980.00} instead of the correct ~ {$560.00}. 

I was forced to pay the second installment of XXXX property taxes myself on XX/XX/XXXX, the exact due date, because NewRez never did so despite claiming they would. This proves again that their XX/XX/XXXX letter was false. Their mismanagement has left my account in an artificial deficit, caused an unjustified increase in my monthly payment, and exposed me to risk of being marked delinquent when I have always been willing and able to pay my correct contractual payment. Also, despite continually contacting them and requesting this to be fixed, I have been constantly redirected and nothing has actually been done. My stress has been immense, and I don't know what else to do. I've tried everything I can, and I have legal counsel, but I would prefer to go this route if possible. I just want for things to be made right, and for NewRez to follow the contract they are legally obligated to follow, as I am as well. 

I am including into this submission the entire contents of the certified letter that I sent to NewRez, including my current account dashboard showing the negative escrow balance, and the fact that I have continually paid my contracted bills. Furthermore, I am including the proof of delivery for the certified letter I sent to them.

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