Consumer complaint received 2025-03-31 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: Shellpoint Partners, LLC
State: DC

Complaint narrative:
Our current loan servicer, Newrez LLC, illegally added PMI back to my account and backdated it all the way to loan origination even though I applied and obtained PMI removal from my loan with my original loan servicer after my first month 's payment. They claim it is due to an audit on my account and the fact that the criteria has since changed- they are ignoring the fact that they can not change the terms of my loan contract which I followed and had the PMI removal granted. They claim that because my home is a 2 unit home that XXXX XXXX requires a 65 % LTV ratio to remove PMI, but again, my original loan was not with XXXX XXXX and my original loan servicer agreed that I met the terms of my loan to remove PMI and granted PMI removal at the 80 % LTV ratio that was specified in my signed closing documents. Whether or not XXXX XXXX then purchased my loan is irrelevant and can not change the terms of my loan. Per our original loan, in the Mortgage Insurance Disclosure, it states : " If Lender required Mortgage Insurance as a condition of making the Loan and Borrower was required to make separately designated payments towards the premiums for Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender 's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and Lender providing for such termination or until termination is required by Applicable Law. '' Per our original signed loan agreement with Caliber Home Loans, it states in our closing disclosure " You may have the right to cancel the mortgage insurance when the principal balance of the mortgage loan reaches 80 % of the original value of the property securing the loan based on your actual payment. '' Accordingly, after our first month 's payment, I submitted a Request to Remove Private Mortgage Insurance to Caliber Home Loans on XX/XX/XXXX. The request was approved on XX/XX/XXXX by Caliber Home Loans and PMI was removed. Per the documents I have when XXXX XXXX purchased our loan, it states " The sale of your mortgage loan to XXXX XXXX does not affect any term, payment, or condition of the mortgage, deed of trust, or note. '' Additionally, when NewRez took over our Loan, the document says in BOLD that " the transfer of the servicing of your mortgage loan to Newrez LLC will not affect any term or condition of the mortgage. '' Important Dates : Closed on loan XX/XX/XXXX Paid first month on XX/XX/XXXX which brought my LTV below 80 % Submitted a request to remove PMI to Caliber Home Loans on XX/XX/XXXX Caliber Home Loans approved the request and PMI was removed from my loan on XX/XX/XXXX and I received a letter stating my new monthly payments will be less the {$72.00} each month that was the PMI cost. 
Beginning XX/XX/XXXX, No PMI was charged XXXX, XXXX : Newrez LLC took over the servicing of my loan XX/XX/XXXX : Newrez adds PMI back to my account and backdates it all the way to the beginning of my loan and takes {$3300.00} out of my escrow account Each month since then, they are taking {$72.00} per month towards PMI. 

On XX/XX/XXXX, I reached out to Newrez to fix this issue and refund the {$3800.00} they have so far taken out of my escrow account since XXXX, XXXX. The person I spoke to said they would submit a resolution ticket to have this investigated and I should hear back in 3-5 days. On XX/XX/XXXX, I called Newrez for an update and was told that the person I spoke to on Monday failed to put in a resolution ticket. I was then put on with a supervisor who looked into this and said he could clearly see that PMI was removed from my account in XXXX, XXXX. He talked with the manager in their insurance department who said it was an audit that added it back to my account. He said they are willing to do a BPO ( Buyer 's Purchase Order ) for the property at their expense to assess the value and then recalibrate at that point and that if it meets all the criteria, they will remove and backdate a refund to me. The problem is, I do not agree to their changing criteria that is different from the original terms of my loan. Newrez can not change my loan terms and I do not agree to that.

Company public response: Company believes complaint represents an opportunity for improvement to better serve consumers
Company response to consumer: Closed with explanation