Consumer complaint received 2025-11-18 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
NewRez LLC Orphan Entity, Governance Collapse, and Illegitimate Servicer Operation * * ( XXXX XXXX XXXX, enforcement-ready ) Submitted by : XXXX XXXX VA-Backed Mortgage Borrower Permanently and XXXX XXXX XXXX Executive Summary NewRez LLC is currently operating as an orphaned, unparented, ungoverned mortgage servicer after formally stating to regulators that it is not associated with XXXX XXXX XXXX XXXX 

This statement directly contradicts : XXXX XXXXcertified ownership disclosures XXXX filings XXXX XXXX XXXX XXXX XXXX filings XXXX  materials XXXX  public statement of subsidiary structure Every XXXX and XXXX submitted under penalty of federal law By disavowing its parent, NewRez implicitly destroys the legitimacy of XXXX its own governance chain, its legal authority to service mortgage accounts, its compliance responsibility hierarchy, its supervisory oversight structure, and its XXXX  certification lineage. 

A servicer with no parent, no controller, and no lawful governance is not a servicer at all it is a free-floating, unanchored financial entity operating outside the required structure mandated by federal mortgage servicing law. 

This is a systemic, platform-level failure. 



1. NewRezs Own Statement Legally Orphaned the Company NewRez told regulators : XXXX is not associated with NewRez/Shellpoint. 

This disclaims : ownership, agency, governance, control, authority to consolidate, accountability structure, oversight committees, risk management lineage. 

Under federal definitions, this creates an orphan entity, because the designated parent in SEC filings has been rejected. 

A servicer can not legally operate without : a controlling parent ( 12 U.S.C. 2605 ) an established governance chain XXXX oversight an accountable board a validated consolidator a lawful reporting hierarchy NewRez now has none. 



2. SEC-Regulated Entities Can not Disavow Ownership Without Collapsing Their Structure XXXX SEC filings certify : 100 % ownership consolidation of income, liabilities, and MSRs consolidation of goodwill integration of legal, risk, and compliance control over internal audit oversight authority If NewRez claims the opposite, then the company is : unaffiliated ungoverned unanchored structurally illegitimate unable to rely on parent filings unable to certify any compliance This is the definition of a regulatory orphan. 



3. A Mortgage Servicer Can not Operate Without a Parent or Controller Federal law requires a servicer to have : a designated controller ( XXXX XXXX ) a parent with financial responsibility for errors a corporate governance chain clear audit authority ( XXXX ) compliance oversight ( CFPB Supervision Manual ) an accountable board internal controls validated by the parent If the parent disclaims ownership : the servicer is operating illegally. 

There is no legal pathway to operate a mortgage servicing platform without : a parent board, XXXX certifiers, a consolidator, an accountable owner. 

NewRez now meets the definition of : an unparented servicer engaging in high-risk, unregulated operations. 



4. NewRezs Existence Depends on XXXX  Governance Which They Just Rejected Every NewRez action depends on : XXXX board approvals XXXX  risk committee XXXX  capital allocations XXXX XXXX valuations XXXX  regulatory compliance audit XXXX  XXXX signing officers XXXX XXXX XXXX XXXX investor XXXX If NewRez claims it is not associated with XXXX  : Then every one of the following becomes invalid : all XXXX  certifications all internal control attestations all consolidated MSR valuations all amortization schedules all XXXX  audit opinions all financial consolidations all risk disclosures all XXXX  qualification filings NewRezs entire existence collapses because it depends on Rithms filings.

5. Operating as an Orphan Servicer Violates Federal Servicing Law NewRez is required by law to be : governed supervised controlled audited overseen financially anchored Disavowing its parent violates : RESPA ( 12 U.S.C. 2605 ) Reg X ( 12 C.F.R. 1024 ) CFPB UDAAP prohibitions ( 12 U.S.C. 5531 ) SEC Rule 12b-20 SOX 302, 404 REIT qualification rules Servicer governance requirements ( CFPB Supervision Manual, Part 1 ) Interagency Internal Controls Guidelines This is not a clerical mistake it is a nuclear breach of federal financial structure. 



XXXX. The Resulting Entity Is Illegitimate and High-Risk Under supervisory classification, NewRez is now : A free-floating regulated entity no validated parent no lawful controller no governance lineage no certified reporting structure no XXXX XXXX no validated internal controls no risk oversight In other words : An unlicensed ship pretending to fly a flag it no longer recognizes. 

Such an entity can not legally service mortgages in the United States. 



7. Requested Enforcement Actions I request that federal regulators : 1. Investigate NewRez for operating without a lawful parent.

2. Review all contradictory statements made to CFPB, TNDFI, and SEC XXXX 
3. Examine XXXX  certification breakdown. 
4. Assess whether NewRezs governance structure still meets federal standards.

5. Determine whether NewRez is operating as an unregistered, unsupervised servicer.

6. Evaluate all MSR valuations, escrow accounting, and ledger operations tied to an orphaned servicer.

7. Refer structural contradictions to SEC Enforcement for securities fraud implications.

NewRez can not claim to be independent while relying on XXXX filings to operate. 
A servicer can not exist without a parent. 
A parent can not disavow a subsidiary without collapsing the entire structure. 

NewRez is now an entity without a lawful foundation. 



Closing Statement By rejecting its parent, NewRez has invalidated its own governance, its own legality, and its own operational existence.

A mortgage servicer can not exist as an orphaned entity, and NewRez has now placed every borrower including XXXX veterans at risk under a collapsed oversight structure. 

This is an existential regulatory failure requiring immediate investigation.

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