Consumer complaint received 2026-03-04 00:00:00
Product: Mortgage — USDA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Shellpoint Partners, LLC
State: FL

Complaint narrative:
I am filing this complaint regarding the ongoing mishandling and withholding of loss draft escrowed insurance proceeds following the destruction of my primary residence during XXXX XXXX. My home was destroyed, and this is a full reconstruction claim. My family remains displaced and is currently living in a camper while our home is being rebuilt. The loss draft escrowed insurance proceeds being held by Shellpoint/NewRez XXXX XXXX solely to construct my home. Instead of facilitating timely rebuilding, the company has repeatedly delayed, obstructed, and complicated the release of these funds despite my full compliance with every request made. Most recently, a materials list was required in order to release a construction draw of {$74000.00}. This amount includes the next scheduled draw owed to my general XXXX as well as payment associated with a change order for additional clearing required on the property. My XXXX provided a detailed materials list, line-item estimate, XXXX, XXXX proposal, draw schedule, and executed change order documentation. Everything requested has been submitted. After submission, I was informed that management XXXX not accept the materials list because it was not broken down line-by-line from retail stores such as XXXX XXXX. My general XXXX is not acting as a retail purchaser and is not buying materials directly from these stores. They are a licensed general XXXX managing subcontractors and suppliers. This retail-level breakdown requirement was never provided in writing and appears to be an arbitrary standard introduced after documentation was already uploaded. This delay is preventing timely payment to my XXXX and is interfering with active construction. The delay in releasing this {$74000.00} draw is not minor. Under my written contract with my builder, payment timelines are clearly defined. The contract provides that each payment withheld or delayed more than XXXX ( XXXX ) days from the specified due date is subject to an administrative fee of {$300.00} per day plus interest at XXXX percent ( 18 % ) per annum from the date due until paid. The contract further provides that the XXXX XXXX stop work XXXX ( XXXX ) days after any payment is due but unpaid. Because Shellpoint/NewRez is withholding loss draft escrowed insurance proceeds that are contractually owed to the builder, they are responsible for any administrative fees, interest, or penalties incurred due to these delays. These financial consequences stem solely from Shellpoint/NewRezs failure to timely release the funds that I have fully qualified for and documented. Their delay is not just inconvenientit has contractual, financial, and operational ramifications that directly impact the active construction of my home. XXXX has been extremely burdensome and disorganized. I have called into Shellpoint/NewRez every single day since XX/XX/XXXX seeking updates. Over the course of the past year, I estimate I have made well over XXXX calls. There is no reliable written communication channel. My assigned processors do not respond to emails. To obtain any update, I must call customer service, enter my information into the automated IVR system, speak with a representative in an overseas call center, and request escalation. The call is then transferred to a XXXX senior representative presented as a supervisor. That representative contacts my assigned processor internally. I am told to wait XXXX hours for a response, and the only way I learn the outcome is by calling back and repeating the entire process. I have only spoken directly to my current assigned processor twice. I previously requested that my former processor be removed due to mishandling and lack of responsiveness. This structural communication breakdown forces repeated escalation and daily calls simply to obtain status updates on funds that should already have been released. Inspection delays have compounded the issue. I requested an inspection on XX/XX/XXXX, and no inspector arrived until XX/XX/XXXX, nearly a month later. That occurred only after I stated I would file a complaint due to ongoing disorganization and repeated use of incorrect contact information. Since XX/XX/year>, I have repeatedly requested correction of my phone number in their system. Despite this, inspectors continued attempting to call the wrong number. On XX/XX/XXXX, I requested another inspection and again the wrong number was used. An inspector finally contacted me on XX/XX/XXXX. These repeated failures to maintain accurate account information directly delayed the construction timeline. This pattern did not begin this year. In XXXX, it took nearly XXXX months for Shellpoint/NewRez XXXX XXXX payment to a prior XXXX hired to remove a tree from the property. The same issues were present : prolonged delay, lack of proactive communication, and funds withheld without clear and consistent explanation. The loss draft escrowed insurance proceeds are intended to construct my home. Continued withholding of funds despite my complete submission, vague and shifting documentation requirements, inspection delays, failure to correct contact information, and unresponsive communication have created an ongoing pattern of mismanagement since XXXX. These delays are prolonging my familys displacement and interfering with active construction. This complaint also serves as a formal Notice of Error under the Real Estate Settlement Procedures Act ( RESPA ), XXXX XXXX. XXXX, and Regulation X, XXXX C.F.R. XXXX. The servicing errors include unreasonable delay in administering loss draft escrowed insurance proceeds ; failure to maintain accurate borrower contact information ; failure to provide clear, consistent written requirements for disbursement ; and failure to provide timely and responsive communication regarding loan servicing matters. I am requesting a formal investigation, written explanation of any alleged deficiencies, confirmation that my contact information has been permanently corrected, and immediate release of all eligible construction funds, including the {$74000.00} draw. I expect acknowledgment and response within the timelines required under federal law. I have complied with every request made of me. The ongoing delays are not the result of borrower inaction. They stem from internal mismanagement, inconsistent standards, inspection delays, and ineffective communication processes within Shellpoint/NewRez. Because of these delays, Shellpoint/NewRez will be responsible for any administrative fees, interest, or penalties imposed on the builder for late payment. These actions have caused financial strain, exposed me to contractual penalties under my builder agreement, and prolonged my familys displacement as hurricane victims attempting to construct our home. Even if these funds are eventually released, Shellpoint/NewRez must be held accountable for this pattern of mismanagement and the resulting contractual penalties. Immediate Demand for Relief : I am demanding the immediate release of the {$74000.00} draw and that Shellpoint/NewRez assume responsibility for all contractual penalties, administrative fees, and accrued interest caused by their delays in withholding loss draft escrowed insurance proceeds. Further delay is unacceptable, continues to harm my family financially and emotionally, and obstructs the active construction of my home. Regardless of whether the funds are eventually released, Shellpoint/NewRez must be held accountable for their mismanagement and its consequences. I request a formal written response within the timelines set forth under RESPA and Regulation X.

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