Consumer complaint received 2025-11-03 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
Subject : Systemic Compliance Collapse NewRez LLC d/b/a Shellpoint Mortgage Servicing / XXXX XXXX XXXX XXXX 

Complainant : XXXX XXXX Loan Number : XXXX Property : XXXX XXXX XXXX, XXXX XXXX  XXXX Narrative Between XXXX XXXX XXXX, I submitted a Qualified Written Request ( QWR ) and Notice of Error ( NOE ) under RESPA ( 12 C.F.R. 1024.3536 ), supported by metadata, payment ledgers, and call transcripts proving misapplied mortgage payments and ledger manipulation. 
Shellpoint Mortgage Servicing acknowledged receipt three timesissuing letters dated XX/XX/XXXX, and XXXX, XXXXeach unsigned, auto-generated, and issued by the Customer Care Team rather than the Compliance or Legal Department . 

Despite direct notice to the Chief Legal Officer of Shellpoint and the President of XXXX XXXX, the matter remains trapped at the customer-service level. This demonstrates a collapse of Shellpoints compliance-management system and a pattern of reckless disregard for federal servicing obligations. 



1. Procedural and Legal Violations Shellpoints actions violate 12 C.F.R. 1024.35 ( c ) ( 1 ) and 1024.36 ( d ) ( 2 ) by failing to route borrower error allegations to trained personnel and to provide a substantive written response within thirty business days.

Each acknowledgment letter constitutes constructive receipt under Marais v. Chase Home Finance LLC, 736 F.3d 711 ( 6th Cir. 2013 ), where acknowledgment without investigation was deemed reckless noncompliance.

Multiple court decisions reinforce that automated responses do not satisfy RESPA : Catalan v. RBC Mortgage Co., 2008 WL 2741159 ( N.D. Ill. 2008 ) form letters without review prove pattern or practice.

McLean v. GMAC Mortgage Corp., 398 F. Appx 467 ( 11th Cir. 2010 ) failure to act after acknowledgment constitutes willful violation.

Ploog v. HomeSide Lending Inc., 209 F. Supp. 2d 863 ( N.D. Ill. 2002 ) repeated template responses show systemic disregard.

2. Metadata and Digital Evidence The evidence packet included timestamped PDFs, author and version data, and ledger-file creation logs proving manipulation of unapplied payments and escrow accounting.

This metadata qualifies as electronically stored information ( ESI ) under Lorraine v. Markel American Ins. Co., 241 F.R.D. 534 ( D. Md. 2007 ) and must be preserved once notice is received ( Zubulake v. UBS Warburg LLC, 220 F.R.D. 212 ( S.D.N.Y. 2003 ) ).

Shellpoints failure to review or escalate these records is not accidentalit is intentional avoidance of regulatory obligations.

3. Evidence of Systemic Collapse All three acknowledgment letters were unsigned and auto-generated, confirming that Shellpoints platform issues federal acknowledgments through automation rather than compliance oversight.

This breakdown in routing, coupled with duplicate dates and no escalation to Legal, reveals that internal compliance architecture has failed.

Regulators view such behavior as a control-environment failurethe servicer can not identify, route, or remediate borrower notices. 
Because the XXXX and XXXX President were directly notified, corporate knowledge is established under agency law. Continuing to operate through automation after executive-level notice constitutes reckless disregard and pattern-level noncompliance under 12 U.S.C. 2605 ( f ) ( 1 ) ( B ). 



XXXX. Damages and Enforcement Demand I claim actual and statutory damages of no less than {$100000.00}, and seek compensatory relief of no less than {$150000.00} for unapplied payments, credit injury, and ongoing emotional and financial harm. 

I further request : XXXX. A full audit across all servicing platforms for escrow accounting and unapplied balances, including metadata validation and ledger cross-checks. 
XXXX. Immediate enforcement action by CFPB, coordinated with DOJ, SEC, and state attorneys general, to protect both myself and all other impacted borrowers. 
XXXX. An order requiring XXXX XXXX and NewRez to certify their compliance-management systems under 12 C.F.R. 1024.38 ( c ) ( 2 ). 



XXXX. Broader Pattern and Precedents NewRez LLC and Shellpoint have a documented history of litigation and enforcement exposure, including : Hodges v. NewRez LLC d/b/a Shellpoint Mortgage Servicing and Bank of New York Mellon ( Class Action , N.D. Cal., 2024 ) alleging deceptive zombie second-mortgage servicing.

Apodaca v. NewRez LLC ( E.D. Mich., 2023 ) alleging mishandled payment application and communication failures.

Ortiz v. NewRez LLC ( D. Mass., 2022 ) alleging repeated QWR/NOE violations . 

The CFPBs own public complaint database contains thousands of consumer reports describing nearly identical patterns : unapplied funds, contradictory statements, and unresponsive Customer-Care automation. This reflects an enterprise-level compliance failure that now extends to governance oversight under XXXX XXXX. 



6. Requested Regulatory Actions Open a CFPB enforcement and supervisory investigation into NewRez/Shellpoints correspondence-routing and metadata-handling practices. 
Coordinate with the DOJ Civil Division, SEC, and State Attorneys General to examine whether misrepresentation or spoliation occurred in violation of 18 U.S.C. 1519 and 15 U.S.C. 1692e ( 10 ).

Compel restitution for unapplied payments, removal of false delinquency notations, and permanent prohibition against foreclosure or adverse credit reporting during the review.

Respectfully submitted, XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX XXXX XXXX XXXX is the parent company and controlling entity of NewRez LLC d/b/a Shellpoint Mortgage Servicing, exercising direct oversight of its servicing, compliance, and financial reporting operations. NewRez functions as a wholly owned subsidiary within XXXX mortgage-servicing portfolio, and its compliance failures therefore extend to XXXX governance obligations under federal law. XXXX executives receive and certify subsidiary performance data in public SEC filings, meaning that any systemic misrouting, metadata suppression, or RESPA violations at XXXX represent not only a servicing failure but a material governance breach attributable to XXXX itself under 15 U.S.C. 78j ( b ) and Regulation FD.

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