Consumer complaint received 2021-06-22 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Shellpoint Partners, LLC
State: FL

Complaint narrative:
This is one of many emails that have been sent to SHELLPOINT MORTGAGE SERVICING. 

Point Number 1, yes XXXXX did authorize a payment of {$19000.00} from her account to bring her mortgage account ending in XXXX current. 

Prior to this the representative from Shell Point explained to XXXXX and myself that the 6 payments that were applied to the mortgage ending in XXXX ( I have attached said payments ) totaling {$12000.00} would be credited to the correct mortgage account ending in XXXX by doing an internal reversal of the principal payment of {$41000.00} that was made to the mortgage ending in XXXX and crediting back {$28000.00}. 

The representative told XXXX and myself this was the easiest way to do this. 

XXXXXX and I did not realize that by doing this the outstanding mortgage amount would increase as we were only following what the representative suggested we do and it sounded fine. 

This is all on the audio recording that I am sure Shell Point must have of the conversation. 



Below I will demonstrate why this was incorrect and what should have been done was to reverse payment by payment ( there were only 6 payments ) to have the mortgage account with the correct balance. 

Attached you will see the 6 payments made. ( DEBITED FROM XXXXX ACCOUNT ). 

PAYMENT 1 - {$2100.00} ( {$220.00} PRINCIPAL, {$1200.00}, INTEREST, {$670.00} ESCROW ) PAYMENT 2 - {$2100.00} ( {$220.00} PRINCIPAL, {$1200.00} INTEREST, {$670.00} ESCROW ) PAYMENT 3 - {$2100.00} ( {$450.00} PRINCIPAL, {$1000.00}, INTEREST, {$670.00} ESCROW ) PAYMENT 4 - {$2100.00} ( {$480.00} PRINCIPAL, {$990.00}, INTEREST, {$670.00} ESCROW ) PAYMENT 5 - {$2100.00} ( {$490.00} PRINCIPAL, {$990.00}, INTEREST, {$670.00} ESCROW ) PAYMENT 6 - {$2100.00} ( {$490.00} PRINCIPAL, {$980.00}, INTEREST, {$650.00} ESCROW ) TOTAL PAYMENTS MADE : {$12000.00} WHICH WERE APPLIED TO : PRINCIPAL PAYMENTS : {$2300.00} INTEREST PAYMENTS : {$6500.00} ESCROW PAYMENTS : {$4000.00} Now by doing the correct reversals which should have been each of the above payments individually all would have been fine. 

But as one can see the principal balance was reduced by {$2300.00} on the mortgage ending XXXX with these payments that were applied which should have been applied to the mortgage ending in XXXX. 

But by doing a global entry by reversing the payment of {$41000.00} made directly to principal and then only crediting back {$28000.00} thus increasing the amount of the mortgage {$12000.00}. 

What should have been done and should be done now to correct the situation is reverse those adjustments made for {$41000.00} and {$28000.00} and reverse one by one ( the 6 payments made ). 

It does not make any sense if the 6 payments in question reduced the principal balance by {$2300.00} to then have Shell Point tell XXXXX and myself that the best way to get all in order was to adjust the principal payment of {$41000.00}. 

By Shell Point doing this the balance on the mortgage increased a NET AMOUNT OF {$10000.00}. ( This was the amount applied to principal {$2300.00} which reduced the mortgage but then increasing it by {$12000.00} with the adjustment for a NET INCREASE OF {$10000.00}. 

This is what needs to be done to get the account ending in XXXX with the correct outstanding balance. 

This was never explained to XXXXX or myself when we spoke with the SHELLPOINT representative. Once the representative realized that the payments were being applied to the incorrect mortgage the option given to use was doing the adjustments from the principal payment of {$41000.00}. 

How convenient, increase the amount of the mortgage by Shell Point just by doing a journal entry. 

Question????? Suppose there was never a principal payment of {$41000.00}, how would have Shell Point have handled it then???? 

Answer : The correct way. 

Please have the management team correct the account to reflect the correct balance on the mortgage ending in XXXX. 

Thanking you in advance,

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation