Consumer complaint received 2026-03-29 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: AZ

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Arizona XXXX Phone : XXXX Email : XXXX Loan Number : XXXX Date : XX/XX/XXXX Subject : Second Notice of Error / Demand for Documentation Pursuant to RESPA and Regulation X To Whom It May Concern : This correspondence constitutes a formal Notice of Error and demand for documentation pursuant to the Real Estate Settlement Procedures Act ( RESPA ), 12 U.S.C. 2605, and its implementing regulation, Regulation X, 12 C.F.R. 1024.35. Your prior response fails to satisfy your obligations under federal law. Specifically, you have not provided sufficient factual support or documentation demonstrating that escrow disbursements made to XXXX XXXX were proper, reasonable, or based on accurate and current information. I. Applicable Legal Standards Under 12 C.F.R. 1024.35, a servicer is required to : Conduct a reasonable investigation of the borrowers asserted error Provide a response that includes either : A correction, or A clear explanation supported by relevant documentation Further, under 12 U.S.C. 2605 ( g ), a servicer must make escrow disbursements in a timely and accurate manner, consistent with the borrowers actual obligations. Courts have recognized that servicers may be liable where they fail to properly investigate or rely on inaccurate information. See, e.g., Renfroe v. Nationstar Mortgage, LLC, 822 F.3d 1241 ( 11th Cir. 2016 ). XXXX. Failure to Provide Supporting Documentation Your response relies on conclusory statements ( e.g., no valid cancellation notice received and payments were made based on available information ) but fails to identify : The specific documents relied upon at the time of each disbursement The source and date of the information used to justify payment Any verification process undertaken in light of conflicting or updated insurance information Absent such documentation, your explanation does not meet the standard of a reasonable investigation under Regulation X. XXXX. Duplicate or Improper Insurance Payments At all relevant times : My insurance situation had changed Replacement coverage was obtained My automobile policy with XXXX XXXX was canceled A pattern of cancellation and renewal activity involving XXXX XXXX occurred Even if homeowners and automobile policies are technically separate, that distinction does not absolve the servicer of its obligation to act reasonably and in accordance with available information. A reasonable servicer, exercising ordinary care, would not continue to disburse escrow funds under circumstances indicating : Potential duplicate coverage Policy instability ( repeated cancellation/renewal cycles ) Conflicting insurance information IV. Required XXXX XXXX to XXXX C.F.R. XXXX, you are required to provide the following : Documentation Supporting Each Disbursement The exact records relied upon for each payment to XXXX XXXX The date and source of that information XXXX XXXX XXXX XXXX XXXX reflecting receipt, review, and logging of replacement insurance ( including XXXX XXXX XXXX XXXX XXXX XXXX and System Logs Any servicing notes, flags, or internal communications related to policy status, renewal, or cancellation XXXX XXXX XXXX of all notices sent to me regarding insurance status or escrow disbursements V. Request for Account Protection Pending Resolution Given that this matter involves disputed escrow disbursements and potential servicing errors, I am formally requesting that all adverse servicing actions be suspended pending full resolution of this dispute. Specifically, I request that you : Refrain from reporting any negative credit information related to this disputed matter Suspend any collection activity, default-related actions, or account escalation tied to the disputed amounts Maintain the account in good standing status with respect to the disputed portion of the balance Place an internal administrative hold or equivalent status on the account until the investigation is completed and this matter is fully resolved Pursuant to 12 C.F.R. 1024.35 ( i ), a servicer may not furnish adverse information to a consumer reporting agency regarding any payment that is the subject of a Notice of Error during the applicable investigation period. Any attempt to advance collection or credit reporting actions while this dispute remains under review will be considered improper and subject to further escalation. VI. Notice of Continued Dispute This matter remains disputed. If you are unable to produce documentation substantiating your actions, then the only reasonable conclusion is that escrow disbursements were made without proper verification and in violation of your obligations under RESPA. Failure to adequately respond will result in further escalation, including but not limited to : Additional regulatory complaints Referral to appropriate state authorities Consideration of all available legal remedies Sincerely, XXXX 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