Consumer complaint received 2025-11-15 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
CFPB COMPLAINT ( POST-BANKRUPTCY SERVICING VIOLATIONS ) Complainant : XXXX XXXX XXXX Veteran Loan Servicer : NewRez LLC XXXX Shellpoint Mortgage Servicing Parent Entity : XXXX XXXX XXXX XXXX 
Loan Type : XXXX mortgage Property : XXXXXXXX XXXX XXXX., XXXX, XXXX XXXXXXXX Bankruptcy Case : XXXX ( XXXX. XXXX ) Discharge Date : XX/XX/XXXX I. Urgent Request for CFPB Intervention ( XXXX Veteran / Post-Discharge Violations ) I am a XXXX veteran with a XXXX mortgage serviced by NewRez/Shellpoint. Since my Chapter XXXX discharge on XX/XX/XXXX, NewRez has engaged in conduct that clearly violates : 11 U.S.C. 524 ( i ) ( post-discharge misapplication causing injury ) RESPA / XXXX XXXX ( XXXX C.F.R. XXXX, XXXX, XXXX ) FCRA ( XXXX5 U.S.C. 1681s-2 ( a ), XXXX ( b ) ) FDCPA ( XXXX XXXX XXXX XXXX  ) XXXX XXXX XXXX XXXX XXXX. XXXX, XXXX ) VA mortgage-servicing regulations ( XXXX C.F.R. XXXX ) NewRez is actively creating false delinquency, charging wrongful late fees, issuing contradictory payment demands, misapplying payments, and furnishing false credit reporting that contradicts both my bankruptcy and their own internal records. 

This is an immediate risk of wrongful foreclosure on a veterans home based on corrupted data. 

I am asking CFPB to treat this as a priority, high-risk case. 



XXXX. My Mortgage Was NOT XXXX NewRez Is Misrepresenting It My Chapter XXXX bankruptcy ( Case XXXX ) did not discharge or surrender my VA mortgage. 
Schedule D lists NewRez as a secured creditor with approx. {$600000.00} owed. 
I retained the property. 
The mortgage survived bankruptcy. 
I continued to make payments before and after discharge. 

Despite this, NewRez has been reporting to Experian that the mortgage is : XXXX through Chapter XXXX Paid off Closed Never late This is false, misleading, and illegal. 



XXXX. XX/XX/XXXX & XXXX, XXXX Calls : Servicing Collapse After Discharge A. XX/XX/XXXX First Recorded Failure ( Post-Discharge ) On XX/XX/XXXX, I called to make my XXXX payment. XXXX systems contradicted themselves : Online portal : {$3900.00} due XXXX internal system : {$4000.00} due Representative admitted the system was wrong and said : I need to file a complaint on your behalf and escalate this to upper-level review. 

This is a direct post-discharge misapplication under XXXX ( i ) : NewRez could not produce a correct payment amount for the same month. 



XXXX XX/XX/XXXX Second Recorded Failure ( Post-Discharge ) The next day, another NewRez representative quoted : Total amount due : {$5000.00} Late charges : {$1000.00} Previous amounts contradicted ( both {$3900.00} and {$4000.00} ) Then NewRez accepted a {$2000.00} partial payment, acknowledging the account was unstable. 

They then attempted to sell me a mortgage purchase program, even while claiming delinquency something that can not occur if the system is accurate. 



IV. This Creates a Post-Discharge Violation Under 524 ( i ) Under 11 U.S.C. 524 ( i ), a servicer violates the discharge order if : the creditor willfully fails to credit payments received thereby causing material injury. 

The XXXX calls show : Contradictory payment amounts Wrong delinquency Improper late fees Systemic misapplication Internal escalation due to corrupted data Ongoing harm to me as a XXXX debtor Cases like XXXX XXXX NewRez LLC, In re XXXX, In re XXXX, and In re XXXX show that this conduct is a direct bankruptcy violation. 



V. FCRA Violations Are Clear and Willful Experian tradeline shows : XXXX in Chapter XXXX Paid off Closed No payments due Never late This contradicts : XXXX demands for payments XXXX foreclosure posture XXXX XXXX contradictions My bankruptcy schedules This violates : 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) ( furnishing known inaccuracies ) 1681s-2 ( b ) ( failure to correct after notice ) Precedents : XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX & XXXX XXXX 



VI. RESPA / Reg X Violations NewRez failed to maintain accurate records as required by : 12 C.F.R. 1024.35 ( b ) ( 2 ) ( Failure to correctly apply payments or maintain accurate information. ) Evidence : XXXX contradictory XXXX payment amounts Contradictory delinquency coding Contradictory escrow figures Repeated late-fee inflation Acceptance of partial payments with no accurate principal/escrow accounting Admission by representative that system errors required escalation This is the exact pattern described in XXXX, XXXX, and XXXX XXXX all lawsuits XXXX NewRez/Shellpoint/Rithm. 



XXXX. VA Mortgage Protections Violated Under XXXX C.F.R. XXXX, servicers must : Maintain accurate records Provide consistent payment information Avoid deceptive or confusing communications Protect veterans from wrongful delinquency or foreclosure NewRez has violated all of these. 



XXXX. Pattern-and-Practice Evidence ( Existing Litigation Against NewRez ) NewRez/Shellpoint is currently involved in multiple national actions involving : Misapplied payments Zombie second mortgages False bankruptcy reporting Illegal inspection fees Fee-churning Deceptive servicing practices Improper delinquency coding Portfolio-wide data failures Cases include : XXXX XXXX NewRez LLC ( XXXX XXXX mortgage ) XXXX XXXX NewRez LLC XXXX fraud/abuse of process ) XXXX XXXX NewRez LLC XXXX deceptive servicing & fee-churning ) Maryland XXXX XXXX over XXXX XXXX fees My experience fits these patterns exactly. 



XXXX. Requested XXXX I respectfully request CFPB require NewRez/Shellpoint/Rithm to : XXXX. Immediately cease collection and foreclosure activity. 

XXXX. XXXX a full post-discharge audit of my mortgage. 

XXXX. Reverse all improper late fees and false delinquency. 

XXXX. Correct or delete the Experian tradeline. 

XXXX. Provide accurate and complete servicing records. 

XXXX. Reconcile all payments from bankruptcy discharge to present. 

XXXX. Provide written explanation of the XXXX contradictions. 

XXXX. Consider enforcement action due to systemic failures affecting veterans. 

Additional requested relief : Full payoff of my VA mortgage XXXX of clear title Permanent non-contact from XXXX {>= $1,000,000} XXXX XXXX, reflecting economic loss, emotional harm, veteran-specific injury, punitive damages, and systemic misconduct X. Documentation Available I can provide : Bankruptcy petition, discharge order, schedules Recorded calls from XX/XX/XXXX & XX/XX/XXXX Screenshots of portal payment amounts Experian tradeline NewRez ledger entries Notices of Error and written disputes Prior CFPB complaints State regulator correspondence XX/XX/XXXX Hello sir You Yes Participant OK, I apologize for putting on hold. You said that the amount that it was quoting you was {$3400.00} is that correct? 

You XXXX a night no {$3900.00} Participant {$920.00} OK You Correct Participant OK, so that's not the principal then OK what I'm gon na go ahead and do is I'll file a complaint on your behalf and get that escalated up to an upper level You OK Participant representative that will be able to investigate it for you. That's just gon na take me a couple more minutes. 

You Well, it says banana, but it says {$3900.00}. Does it not XXXX XXXX, like I said, I'm on the profile here. It says that your payment due for XXXX is {$4000.00}. 

You I'll give it when you call XXXX to make a payment it says {$3900.00} so that's what I wan na pay for my general payment since you guys are offering me that Participant OK, I understand that, sir that's why I'm filing a complaint on your behalf to have that You OK Participant escalated up to a representative for you OK? 

You Right right I've also like to pay since that's my XXXX payment I'd like to make that payment for {$3900.00} Participant OK so Once I am done filing that complete, I'll come back and process your payment for you OK You All right, thank you XX/XX/XXXX About servicing your loan press, XXXX to talk to a loan XXXX about refinancing your current mortgage press, XXXX to talk to a loan XXXX about purchasing a new home. Please select XXXX of the following options to be connected to your loan servicer for new red press XXXX for XXXX XXXX XXXX for loan care press XXXX Thank you for calling Shell point mortgage servicing, but XXXX XXXX XXXX note your XXXX documents will be included in your XXXX billing statement. There XXXX be a short delay in mailing these statements as we prepare these tax documents in XXXX. All statements will be available on our website once they are completed your XXXX will be mailed and available on our website to download by XX/XX/XXXX. Please enter the last XXXX digits of your Social Security number followed by the pound key. We see the number you are calling from today is XXXX XXXX XXXX XXXX XXXX. Is this a good number to call using our automatic telephone dialing system for future calls. Thank you we will update this phone number on your loan. If you are a homeowner in an active or XXXX bankruptcy, you XXXX have received a periodic billing statement from us. Recently borrowers in an active or XXXX bankruptcy previously did not receive statements unless requested the XXXX XXXX mortgage servicing rules requires mortgage service service to send modified periodic statements to consumers who have filed for bankruptcy. These rules went into effect on XX/XX/XXXX XXXX. If you do not wish to receive periodic billing statements, you XXXX request in writing that we see sending periodic statements. Please choose XXXX of the following options to self service your loan to pay by phone using our free You The light Participant automated phone pay system press XXXX for Shell point mortgage service in contact information press XXXX for XXXX loan. Please note any payments received before XXXX PM Eastern time will be posted to your mortgage account that day all payments can take up to XXXX business days for funds to be drafted from your bank account. Please choose the bank account you'd like to pay from for the checking account ending in XXXX XXXX XXXX press one for the checking account ending in. XXXX XXXX press XXXX to enter information for a different bank account press the # your total payment amount due is {$4000.00}. The minimum amount due is You I'm sorry Participant {$4000.00} to pay the total amount due press one to pay only the minimum due press XXXX. 




XX/XX/XXXX To be connected to your loan servicer for new Rez press XXXX for XXXX Thank you for calling Shell point mortgage servicing, but XXXX XXXX XXXX note your XXXX documents will be included in your XXXX billing statement. There XXXX be a short delay in mailing these statements as we prepare these tax documents in XXXX. All statements will be available on our website once they are completed your XXXX will be mailed and available on our website to download by XX/XX/XXXX. Please enter the last XXXX digits of your Social Security number followed by the pound key. We see the number you are calling from today is XXXX XXXX XXXX XXXX XXXX XXXX XXXX. Is this a good number to call using our automatic telephone dialing system for future calls to allow us to use this phone number press XXXX if you would like to opt out press XXXX, thank you, we will update this phone number on your loan. If you are a homeowner in an active or XXXX bank bankruptcy, you XXXX have received a periodic billing statement from XXXX recently borrowers in an active or XXXX bankruptcy previously did not receive statements unless requested the XXXX XXXX mortgage servicing rule requires mortgage services to send modified periodic statements to consumers who have filed for bankruptcy these rules went into effect on XX/XX/XXXX XXXX if you do not wish to receive periodic billing statement, you XXXX request in writing that we see sending periodic statements Please choose XXXX of the following options to self service your loan to pay by phone using our free automated phone system press XXXX for point mortgage servicing contact information press XXXX for general loan information press XXXX your call is being transferred. Please hold thank you for calling Shell point mortgage servicing please be advised we are a debt collector. This is not an attempt to collect a debt due to your bankruptcy for training and quality purposes. Your call XXXX be monitored or recorded your estimated wait time is less than XXXX minutes. In a XXXX can't wait dial one to use our automated payment system free of charge All of our agents are assisting other customers please continue to hold for the next available agent Thank you for calling XXXX my name is XXXX. See on a recorded line who have a pleasure speaking with You Yeah, hi my name is XXXX XXXX Participant XXXX XXXX, your calling in reference to loan number XXXX XXXX You Yeah, I guess so. Yeah. 

Participant Thank you and your family for the sacrifice and service of our country and honor to have you as our customer You OK Participant Verification purpose can you verify the last XXXX digits of your Social Security number along with your mailing address? 

You XXXX XXXX XXXX XXXX, XXXX, TN XXXX Participant Southpoint mortgage servicing is a debt collector. This is an attempt to collect a debt and any information obtained will be used for that purpose we are showing you have a total amount due on the account of {$5000.00}. Are you calling me to make a payment? 

You Where are you getting XXXX from? 

Participant Do you have late charges of {$1000.00} and then you also You Yeah, we're not worried about that so I wan na make it. I wan na make a payment of XXXX Participant have XXXX XXXX XXXX out of bank account ending in. See the account ending in XXXX Participant XXXX You Correct XXXX XXXX Participant OK XXXX XXXX. Do you want to schedule the other balance of your XXXX payment for a different date OK? 

You Note will take care of it when we get it Participant That account ending in XXXX XXXX You Correct Participant XXXX XXXX to confirm we're setting up this XXXX time payment today XX/XX/XXXX for payments on XX/XX/XXXX XXXX and the amount of {$2000.00} from your checking account ending in XXXX if you have any questions or to cancel a future payment you can contact us at the number you same-day XXXX can not be canceled. Do I have your permission to proceed? 

You Yes, yes Participant OK XXXX second let me get you your confirmation number OK, your confirmation number XXXX XXXX XXXX You OK OK Participant Aside from scheduling the payment I wanted to check if you're playing in the sale or purchase a home in the next XXXX months You Probably Participant As a new customer eligible for a purchase program where you can save {$1000.00} if you purchase a new home with us You Oh no no that's OK now we're not gon na go with you guys but thank you thank you for helping me today Participant No problem is there anything else I can assist you? 

You That's it thank you

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