Consumer complaint received 2025-11-13 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
Regarding : XXXX XXXX XXXX, NewRez LLC, and Shellpoint Mortgage Servicing Subject : Ownership Misrepresentation, Governance Collapse, Servicing Violations, and Operation of an Orphaned Servicer Entity 1. Ownership Contradiction : Parent Disclaims Subsidiary While SEC XXXX XXXX XXXX XXXX XXXX XXXX XXXX has submitted contradictory statements to federal and state regulators : To XXXX : XXXX stated it is not associated with NewRez/Shellpoint. 
To the XXXX : XXXX certifies, under penalty of securities law, that it owns, controls, and consolidates NewRez/Shellpoint as core subsidiaries and primary income sources. 

Both statements can not be true. 

This contradiction renders : proxy materials, XXXX  certifications, consolidated financials, XXXX  qualification filings, XXXX beneficial ownership, the Form XXXX shelf, the Series E preferred offering, and risk disclosures materially unreliable under federal law. 



2. Legal Consequence : NewRez Becomes an Orphan Entity Under Regulatory Standards If the parent disclaims ownership of the subsidiary, the subsidiary becomes an orphan entity in the eyes of regulators. 

This is the accurate legal concept used in federal oversight. 
Such an entity is not fake, collapsed, or destroyedit is orphaned, meaning : no lawful parent, no lawful governance chain, no validated reporting structure, no clear consolidating entity, no legitimate controller, no validated board oversight, no lawful XXXX  certification pathway, no validated income consolidation. 

This is not theoretical. 
This is the classification used when a parent companys regulatory statements contradict its SEC identity. 



3. NewRez as a Disassociated Subsidiary ( Loss of Controller ) A company must have : a parent, a controller, a governing board, and a financial consolidator. 

If XXXX states we do not own NewRez, then the controller ceases to exist under federal definitions. 

Legally, NewRez becomes : A standalone, unparented servicer operating without a valid controller also known as a disassociated subsidiary. 

Regulators classify these as : high-risk, misreported, potentially non-compliant, and subject to direct supervisory intervention. 



4. Toxic SEC Filings Render NewRezs Financials Unreliable NewRez does not file standalone SEC reports. 
XXXX consolidates : revenue, expenses, servicing income, MSRs, goodwill, liabilities, risk disclosures. 

If the parent filings collapse, then : all of NewRezs financial data becomes unreliable inputs under XXXX XXXX and SEC Rule 12b-20. 

NewRez becomes, in regulatory language : a XXXX box servicer lacking validated controls. 



XXXX. XXXX XXXX XXXX XXXX = No Lawful Oversight of NewRez XXXX XXXX : appoints NewRez leadership, authorizes oversight committees, establishes risk policies, ensures XXXX compliance, certifies consolidated reporting. 

If the parents board is void ab initio due to a defective proxy built on false ownership assertions : NewRez has no lawful governing authority above it. 

This creates an entity operating on paper, but with no legitimate supervisory lineage. 

Regulators classify this as : Ungoverned but operating the highest-risk category for a mortgage servicer. 



6. What NewRez Becomes Under This Scenario A servicer operating without : a valid corporate parent, validated financial oversight, lawful XXXX XXXX XXXX, legitimate governance lineage, a functional controller, or validated consolidation. 

In regulatory terms : NewRez becomes an orphaned, unanchored, high-risk servicer with no lawful parent signature authority. 

Not criminal per se but structurally illegitimate, and therefore subject to escalated scrutiny.

7. Enforcement Classification : Free-Floating Regulated Entity In enforcement language, NewRez becomes : a free-floating regulated entity, or a disavowed subsidiary, because : it claims a parent, the parent disclaims it, SEC filings contradict the disclaimer, the parents board is invalid, therefore the controller ceases to exist in law. 

Meaning NewRez now operates with : no validated authority chain, no validated XXXX certifications, no validated reporting, no validated governance, no validated oversight.

8. Strategic Enforcement Consequence Regulators must treat NewRez as : unstable, unanchored, oversight-deficient, structurally compromised, unable to rely on parent filings, and subject to heightened enforcement. 

This strengthens my : RESPA claims, servicing misconduct claims, CFPB filings, XXXX filings, governance-failure arguments, pattern-and-practice evidence, and board-legitimacy challenge.

9. Servicing Misconduct and Ledger Manipulation NewRez has repeatedly issued : contradictory payment histories, disappearing payments, unapplied funds, retroactive adjustments, false escrow numbers, threats based on incorrect data, and recorded admissions that the system is wrong. 

This violates : RESPA ( 12 U.S.C. 2605 ) Reg X ( 12 C.F.R. 1024 ) FDCPA ( 15 U.S.C. 1692 ) state consumer protection laws These failures are not isolated errors they reflect systemic instability.

10. Damages Due to : unlawful accounting, system-wide misrepresentation, emotional and financial harm, reputational injury, and wrongful foreclosure exposure, I seek {>= $1,000,000} in total damages. 



11. Request for Regulatory Action I request a full investigation of : 1. Rithms conflicting ownership claims 2. Validity of XXXX proxy ( XXXX XXXX XXXX ) XXXX. Validity of XXXX certifications 4. Structural status of NewRez as a disavowed subsidiary 5. NewRezs servicing misconduct 6. Systemic ledger inaccuracies 7. Governance collapse affecting all consumer accounts 12. Closing Statement I am a former federal regulator. 
I recognize what these contradictions represent. 
No mortgage servicer or public parent company can survive structural falsehoods of this magnitude. 

I request immediate regulatory review.

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