Consumer complaint received 2025-10-12 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: Shellpoint Partners, LLC
State: VA

Complaint narrative:
To Whom It May Concern : I am filing this complaint against Shellpoint Mortgage Servicing for inaccurate credit reporting, failure to correct an acknowledged servicing error, and unfair treatment following the refinance payoff of my mortgage. 

Shellpoints refusal to remove a derogatory late payment mark despite having full knowledge that the delay was caused by a third-party settlement company, not me has caused severe and ongoing financial harm. 

1. Background and Timeline I was a mortgage customer of Shellpoint Mortgage Servicing. 

My mortgage was refinanced through XXXX XXXX XXXX, with the closing and payoff handled by XXXX XXXX XXXX, the settlement company selected by Optimum. 

The payoff to Shellpoint was due on XX/XX/year>, but XXXX XXXX XXXX payoff was processed XXXX day late, XX/XX/year>. 

This delay was entirely outside my control as the borrower. I had already completed all loan documents and obligations before the XX/XX/year> deadline. 

2. Shellpoints Improper Credit Reporting Despite being paid in full on XX/XX/year>, Shellpoint reported a late payment to the credit bureaus. This single entry has had a severe and disproportionate impact on my credit standing : A drop of more than XXXX points across all three major credit bureaus ( XXXX XXXX XXXX XXXX ) ; The appearance of a derogatory mark in early XX/XX/year> ; The potential for higher interest rates and lost financial opportunities as a result of this incorrect reporting. 

I contacted Shellpoints customer service department multiple times to explain that the payoff delay was due to the settlement companys one-day error, not any missed payment or inaction on my part.

Shellpoint representatives acknowledged receipt of the payoff but refused to remove or adjust the late mark, stating that the payment was received after the due date, without considering the documented context or my lack of fault.

3. Shellpoints Noncompliance with FCRA and Servicing Standards Under the Fair Credit Reporting Act ( FCRA ), furnishers of credit information such as Shellpoint are required to : Accurately report information to the credit bureaus ; and Conduct a reasonable investigation when a dispute or error claim is raised.

Shellpoints continued refusal to correct this inaccuracy, despite clear evidence that I was not responsible for the delay, constitutes a violation of the FCRA.

It also reflects a failure to exercise good faith and fairness in mortgage servicing practices, in violation of the Consumer Financial Protection Act.

4. Harm Suffered As a direct result of Shellpoints actions, I have suffered : A XXXX point credit score decrease, A derogatory tradeline that inaccurately suggests delinquency, Stress, financial disruption, and reputational harm, Loss of access to favorable credit terms and potential denials for future credit applications. 

This situation has caused unnecessary hardship and damage to my financial reputation all stemming from an error I did not cause. 

5. Supporting Documentation I am prepared to provide the following documents to assist in this investigation : Final payoff statement showing payment receipt on XX/XX/year> ; Proof of closing and payment authorization on or before XX/XX/year> ; Communications from XXXX XXXX XXXX confirming the one-day delay ; Correspondence with Shellpoint Mortgage Servicing requesting correction ; Credit reports showing the derogatory mark posted in early XX/XX/year>. 

6. Conclusion Shellpoint Mortgage Servicings actions demonstrate a lack of fairness, accuracy, and compliance with federal consumer protection laws.

As the borrower, I fulfilled every financial obligation on time. The delayed payoff was the result of third-party negligence not my own and Shellpoints decision to penalize me for this has caused substantial and lasting damage. 

I request the CFPBs intervention to ensure the inaccurate information is corrected and that Shellpoint is held accountable for its actions.

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