Consumer complaint received 2026-01-13 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Changes in loan terms during the application process
Company: Shellpoint Partners, LLC
State: MD

Complaint narrative:
I am filing this complaint regarding a refinance application with my current mortgage lender, NewRez. 
The refinance was originally structured with closing costs to be paid from my escrow account. At the time this structure was proposed, the loan XXXX knew that my property taxes were scheduled to be paid from escrow in the month of closing and that the escrow account would be used for that purpose. 
Due to delays caused by the lender, the escrow account was depleted when the taxes were paid. Only hours before the scheduled closing, I received a revised disclosure showing approximately {$4000.00} in closing costs had been added to the loan balance. This represented a material change to the loan terms and the overall cost of the refinance. 
This material change was not discussed in advance, no alternatives were presented ( such as a lender credit, cash to close, or delaying the refinance ), and it was disclosed only in a docusign document hours before closing. As a result, I was left with no meaningful opportunity to review the revised terms, consider alternatives, or provide informed consent. 
Because of the timing and the significant increase in cost, I refused to sign the refinance documents. 
The lender has since acknowledged the situation but has not offered to correct the issue or cover the additional costs, despite the fact that the escrow depletion and resulting change were foreseeable and within the lenders control. The lender has also failed to respond in a timely manner despite repeated follow-ups. 
I believe the lender failed to provide clear, accurate, and timely disclosures of material loan terms as required under the Truth in Lending Act ( TILA ). The refinance was initially structured in a manner that did not accurately reflect the true cost of the loan once the known escrow payment occurred, and the resulting material change was disclosed too late to allow for informed consent or meaningful choice. 

As a result of the lenders actions, I incurred significant time loss, stress, and uncertainty, and I was forced to abandon a refinance that had been represented as having no out-of-pocket closing costs. I also lost the opportunity to lock in the offered terms due to the lenders delay and late disclosure of materially higher costs.

Disclosure of a material increase in costs only hours before closing undermines the purpose of TILA and TRID timing requirements, which are intended to ensure borrowers have sufficient time to review, compare, and understand loan terms before consummation. 

The escrow depletion was not an unforeseen event ; it was scheduled, known to the lender, and occurred solely because the lender delayed closing, placing the resulting cost increase entirely within the lenders control. 

All communications with the lender occurred on recorded lines, and the lenders own records should reflect its knowledge of the escrow payment, the delays in closing, and the timing of the material change disclosed only hours before the scheduled closing.

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