Consumer complaint received 2025-12-19 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: WA

Complaint narrative:
My mortgage servicer, Shellpoint Mortgage Servicing, mishandled my homeowners insurance, escrow account, and payment history, resulting in improper charges, inflated payment demands, and the initiation of pre-foreclosure activity despite my maintaining insurance and making payments. 

For many years, my homeowners insurance was paid directly by me ( not through escrow ), and Shellpoints own escrow analysis in XX/XX/XXXX reflected this correctly. 

Insurance and force-placed insurance errors : XX/XX/XXXX, Shellpoint sent XXXX requesting proof of insurance renewal, even though my policy was active and premiums were being paid through automatic payments. 

On XX/XX/XXXX, Shellpoint stated my insurance had expired, which was incorrect. The policy had renews in XXXX, and coverage was continuous. 

On XX/XX/XXXX and XX/XX/XXXX, Shellpoint escalated to final and unable to confirm insurance notices, even though there was no lapse in coverage. 

On XX/XX/XXXX, Shellpoint placed force-placed insurance on the account. 

On XX/XX/XXXX, Shellpoint paid approximately {$7000.00} to my actual insurance XXXX, confirming coverage existed and was active. 

Despite this confirmation, Shellpoint did not cancel the force-placed insurance to my knowledge as I have not been informed otherwise. 

Misapplication of funds : After the insurer refunded the {$7000.00} to Shellpoint because my account was current as well as I was listed as the responsible party, Shellpoint misapplied the funds by posting them to future monthly payments and principal instead of correcting the escrow error. 

These misapplications were only corrected after I contacted Shellpoint in XX/XX/XXXX. 

Escrow and payment issues : Shellpoint later added homeowners insurance into escrow without proper notice, creating an artificial escrow shortage and increasing my monthly payment. 

My regular monthly payment prior to these errors was approximately {$610.00}, but XXXX system began showing conflicting and significantly higher amounts. The payments are now {$1300.00} with a new amount issued as I am writing this complaint. 

Fees such as late fees and NSF fees were assessed even though payments were made and, in some cases, cleared the following day. 

Borrower record and bankruptcy errors : Shellpoint repeatedly referenced a former co-borrower who signed a quit claim deed years ago and is not involved in servicing. 

Shellpoint also implied that bankruptcy applied to the loan, which is incorrect. I have never filed bankruptcy, and the mortgage has never included in any bankruptcy proceeding. 

Pre-foreclosure action : On XX/XX/XXXX, Shellpoint issued a pre-foreclosure notice even though any alleged delinquency was caused by its own unresolved servicing errors and disputed charges. 

Impact : These errors caused financial hardship, emotional distress, and fear of losing my home. I repeatedly contacted Shellpoint to correct the issues, but the problems persisted, and corrective action was delayed or refused unless I pursued options like refinancing or loan assumption, which did not address the underlying errors. 

I am asking for CFPB assistance to ensure the servicer corrects the insurance and escrow errors, fixes the payment history, removes improper fees and delinquency coding, stops foreclosure activity, and accurately reflects that no bankruptcy applies to this loan.

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