Consumer complaint received 2026-02-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: NJ

Complaint narrative:
I am filing a complaint against Newrez for unreasonable delay and improper conditions imposed on the release of insurance proceeds related to a covered water-damage claim at my primary residence in XXXX, New Jersey XXXX 

Claim and funds timeline : Insurance settlement amount : {$250000.00} ( water-damage claim ) Insurance check issued : XX/XX/XXXX Check endorsed and delivered to Newrez immediately after issuance As of XX/XX/XXXX, more than XXXX months after Newrez received XXXX funds and approximately XXXX months after claim-related work was completed, Newrez has not released XXXX full amount. To date, Newrez has released approximately 73 % of the proceeds and continues to withhold {$66000.00} without a valid explanation. 

I requested XXXX inspections through Newrez : XX/XX/XXXX inspection : The inspector documented that all water-damage remediation and structural work was completed ( including remediation, demolition, subfloor replacement, HVAC/ductwork, electrical panel work, asbestos abatement, and removal of damaged plumbing and wiring ). 
Despite this, the report listed completion as 0 % solely because the inspector stated he did not have an XXXX report and therefore did not know what 100 % complete looked like. This was not related to the actual status of the work. 

XX/XX/XXXX inspection : This inspection confirmed that all claim-affected areas had framing, plumbing, electrical, HVAC, demolition, and subfloor work completed. Items listed as incomplete were cosmetic or elective finishes ( painting, trim, flooring, cabinets, exterior fencing, hardware ), many of which are not related to the water-damage claim. 

Despite confirmation that claim-related work was completed, Newrez has refused to release the remaining funds and is demanding that : All work in the home, including unrelated elective renovations, be fully completed ; and I provide lien waivers for all contractors, regardless of whether their work relates to the insurance claim. 

I have already provided XXXX waivers for the XXXX who performed approximately 80 % of the claim-related work. Other vendors ( e.g., remediation firms and architects ) were paid in full more than XXXX months ago. Requiring additional waivers for non-claim work is unreasonable and unrelated to the settlement. 

Over XXXX months, Newrez has repeatedly delayed, changed requirements, and failed to provide a clear or consistent explanation for withholding funds. I have attempted to resolve this through numerous phone calls, more than XXXX emails, escalation to XXXX compliance department, and direct contact with claim processors and supervisors, without resolution. In the rare instances I get an answer, they are generic in nature and is basically a copy and paste of Newrez policy as oppose of being specific to my case. 

I am current on my mortgage and have never missed a payment. I did not select Newrez as my servicer ; the loan was transferred to them after origination. 

I am requesting that : Newrez immediately release the remaining {$66000.00} in insurance proceeds ; or Newrez provide a written explanation identifying the contractual or legal basisif anyfor conditioning release of claim funds on completion of unrelated renovations and non-claim lien waivers. 

XXXX conduct constitutes unreasonable delay and improper mortgage servicing related to insurance proceeds.

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