Consumer complaint received 2026-01-25 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Closing disclosure or other related disclosures
Company: Shellpoint Partners, LLC
State: TX

Complaint narrative:
A first-lien mortgage and a home equity line of credit ( HELOC ) secured by the same property were serviced by XXXX XXXX XXXXXXXX XXXX and later by Shellpoint Mortgage Servicing , a division of NewRez LLC XXXX The first-lien mortgage XXXX owned by XXXX XXXX XXXX A non-judicial foreclosure sale occurred on XX/XX/year>. 

Following foreclosure, I requested loan history and account disclosures. The servicer produced a Loan History Summary and Loan History Statement for the first-lien mortgage that were presented as consumer loan history disclosures. 

Those records reflect a reported principal balance of approximately {$0.00} at or near the time foreclosure activity occurred, while simultaneously reflecting litigation-related disbursements and foreclosure-associated servicing entries. The disclosures do not explain how foreclosure was conducted, authorized, or reconciled in the presence of a de minimis reported principal balance, nor do they explain how foreclosure disposition activity affected the reported loan state. 

Separately, HELOC statements issued by XXXX XXXX XXXX XXXX for the same collateral reflect extraordinary Outstanding Late Charges/ Fees totaling approximately {$270000.00}, posted immediately before and after the foreclosure event. These amounts include multiple six-figure entries dated XX/XX/year>, labeled as fees and not identified as payoff, recovery, disposition, or collateral-related accounting adjustments. 

The timing and magnitude of these HELOC fee entries coincide with the foreclosure of the senior lien but are reflected solely as servicing-level fees, without explanation of how they relate to the foreclosure sale, collateral disposition, or application of proceeds across lien positions XXXX 

Across both accounts, the disclosures provided to me as a consumer present : Near-zero or nominal principal balances contemporaneous with foreclosure activity ; Large foreclosure-related amounts characterized as servicing fees rather than clearly identified disposition or recovery entries ; and No clear reconciliation showing how foreclosure activity, fees, and reported balances align. 

I requested clarification and reconciliation from the servicer. While documents were produced, they did not explain how the balances and charges were calculated or classified in a manner that would allow a consumer to understand or independently verify the accuracy of the disclosures. 

As provided, the records functioned as consumer disclosures, yet they do not clearly communicate loan status, payoff condition, fee basis, or the effect of foreclosure on either account. This creates uncertainty regarding whether the disclosures accurately reflect account state and whether fees were characterized in a manner that is clear, transparent, and not misleading. 

Additionally, the servicer-provided loan history records reflect litigation-related disbursements and foreclosure-associated entries attributed to a law firm that does not appear to be the firm that conducted the foreclosure sale. The foreclosure was carried out by a different law firm than the one identified in the servicing records, and the disclosures provided do not explain this discrepancy or clarify the role of each firm. As presented, the records do not clearly or accurately identify the entities responsible for foreclosure activity associated with the account.

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