Consumer complaint received 2026-04-12 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: FL

Complaint narrative:
I am the borrower on a mortgage originated XX/XX/XXXX by NewRez LLC, subsequently transferred to Shellpoint Mortgage Servicing, secured by my property at XXXX XXXX XXXX, XXXXXXXX XXXX XXXXXXXX. Loan identifiers : NewRez # XXXX, Shellpoint # XXXXXXXX XXXX XXXX Investor XXXX # XXXXXXXX XXXX XXXX MIN # XXXX. Despite the violations described herein I have maintained my financial obligations on this loan and my account is currently reported as Current with {$0.00} past due as of XX/XX/XXXX on all three credit bureaus. I am submitting this complaint to create a federal record of ongoing servicing violations and to request immediate CFPB oversight to prevent any foreclosure action while these matters are under active litigation and regulatory investigation. DISASTER PERIOD VIOLATIONS XXXX XXXX : My property sustained catastrophic damage when XXXX XXXX made direct XXXX XX/XX/XXXX in federally declared disaster area XXXX XXXX. XXXX XXXX XXXX XXXX certified records confirm improvement value collapsed from {$110000.00} in XXXX to {$1300.00} in XXXX a 98.8 % reduction confirming total loss. Despite this Shellpoint violated XXXX XXXX Servicing Guide D2-3.3-01, 12 CFR 1024.41, CFPB Bulletin 2021-02, and 15 USC 1681s-2 by failing to provide mandatory disaster forbearance, reporting delinquencies during protected periods, and withholding {$75000.00} in NFIP insurance proceeds approximately four months. Shellpoints own servicing file contains irreconcilable contradictions simultaneously placing my loan in forbearance, deferment, loss mitigation, and default status during overlapping periods without coherent reconciliation. These manufactured delinquencies were then used to pressure loan modifications that inflated my balance from {$380000.00} to {$460000.00} despite years of payments and insurance proceeds received following XXXX approaching or exceeding my original loan balance. INACCURATE CREDIT REPORTING DURING ACTIVE LOSS MITIGATION : My credit report dated XX/XX/XXXX shows XXXX delinquency on XXXX and XXXX delinquency on XXXX during XXXX and XX/XX/XXXX the exact period a loan modification was being executed and recorded in XXXX XXXX ( Instrument XXXX XXXX, recorded XX/XX/XXXX ) while Shellpoints own letters promised suppressed credit reporting during active loss mitigation in violation of 12 CFR 1024.41. After formal written dispute Shellpoint re-verified this derogatory history without correction meeting the willful standard under FCRA Section 1681n. XXXX XXXX GUIDELINE VIOLATIONS 45 YEAR TERM : The XX/XX/XXXX modification ( Instrument # XXXX ) contains an internal contradiction the payment table states 480 months while the maturity date of XX/XX/XXXX calculates to 540 months from origination a direct violation of XXXX XXXX 40-year modification maximum. Experian confirmed 45-year term on this loan after formal dispute. Shellpoint re-verified without correction. Federal precedent exists for this exact conduct : Chong v. New Penn Financial LLC ( Case No. 9:18-cv-80948-RLR, S.D. Fla. ) established Shellpoint and Proctor Financials joint force-placed insurance scheme as a documented recurring pattern the identical conduct reported here. I request CFPB coordinate with XXXX XXXX Office of Inspector General and FHFA OIG regarding whether this loan was properly represented to XXXX XXXX at origination and sale. UNDISCLOSED BALLOON PAYMENT : My XX/XX/XXXX modification contains a deferred principal balance of {$100000.00} due in full at sale, payoff, or maturity not clearly disclosed prior to execution in violation of applicable RESPA and TILA disclosure requirements. FORCE PLACED INSURANCE FRAUD ORIGINATION LEVEL SCHEME : Shellpoint force placed six separate Hamilton Insurance DAC policies on my single family residential property classified by Collier County as Use Code 1 Single Family Residential while a valid NFIP flood policy was continuously in place from closing. ELIOS EDI records confirm both policies were actively billing simultaneously. XXXX XXXX ( Vendor # XXXX, tracking ID XXXX ) simultaneously processed force-placed insurance billing AND controlled hurricane repair disbursements on this loan a structural conflict of interest. The synthetic billing architecture including ELIOS EDI middleware, XXXX XXXX XXXX billing control, XXXX XXXX ( XXXX XXXX License XXXX ) as undisclosed dual agent on both the legitimate XXXX policy and force-placed XXXX policies simultaneously, and XXXX Insurance XXXX XXXX XXXX was fully operational within 8 days of closing as confirmed by ELIOS EDI records dated XX/XX/XXXX. Shellpoints own XX/XX/XXXX XXXX response admitted XXXX XXXX XXXX as third party XXXX vendor. This was not a post-closing error. This was an origination-level scheme that has operated continuously for over five years against a XXXX XXXX backed loan on a federally declared disaster property. FULL INDEPENDENT ACCOUNTING REQUIRED : I request full independent accounting of all insurance proceeds received, held, applied, and disbursed by Shellpoint, NewRez, and XXXX XXXX ( Vendor # XXXX, tracking ID XXXX ) from origination through present including all Hurricane XXXX XXXX and force-placed XXXX Insurance XXXX proceeds with reconciliation of all escrow statements showing wildly inconsistent monthly balances, duplicate billing periods where both legitimate NFIP and force-placed XXXX policies were simultaneously active and billing through the same escrow account, and full accounting of the hurricane repair disbursements controlled by XXXX XXXX for 26 or more months before release. This accounting must identify every dollar that entered and exited escrow on loan numbers XXXX and XXXX separately and reconcile how two loan numbers on one property produced two separate escrow ledgers on the same borrower account. This accounting must trace all financial flows from the date of origination XX/XX/XXXX as the dual loan number structure, force-placed insurance scheme, and conflicted XXXX XXXX role were embedded in this loan at origination. Despite insurance proceeds received following XXXX XXXX approaching or exceeding my original loan balance of {$380000.00} my current balance is {$460000.00}. Every dollar of that increase requires accounting. CONFLICT OF INTEREST FORECLOSURE COMPANY IN MODIFICATION CHAIN : Both loan modifications direct recorded documents to ServiceLink, XXXX XXXX XXXX XXXX, XXXXXXXX XXXX a publicly registered foreclosure auction company embedded in my modification processing without disclosure, potentially violating RESPA 12 USC 2607. DUAL LOAN NUMBER STRUCTURE : My loan carries two confirmed servicer identifiers NewRez # XXXX and Shellpoint # XXXX with a possible third number appearing on insurance documents ( pending verification ). This structure prevents accurate payment accounting and coherent responses to qualified written requests submitted pursuant to RESPA 12 CFR 1024.36. ACTIVE REGULATORY AND LEGAL MATTERS : I am represented by XXXX ( Retainer # XXXX ) on a pending RESPA matter against Shellpoint. Florida OFR Case # XXXX is active Shellpoints XX/XX/XXXX response acknowledged XXXX XXXX XXXX as third party lender placed insurance vendor and acknowledged financial and credit harm to borrower. Florida XXXX XXXX XXXX is active regarding insurance agent of record XXXX XXXX XXXX XXXX XXXX fraud report submitted XX/XX/XXXX to XXXX

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