Consumer complaint received 2024-08-27 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Loan sold or transferred to another company
Company: Shellpoint Partners, LLC
State: IL

Complaint narrative:
Attention : Consumer Financial Protection Bureau Subject : Notice of Error and Request for Correction of Account Errors, Termination of PMI and Acknowledgement of Consumer Rights Violation by Shellpoint Mortgage Servicing ( formerly Specialized Loan Servicing ) To Whom It May Concern, I am writing to formally express my concerns regarding the handling of my mortgage account, first by Specialized Loan Servicing ( SLS ) and now by Shellpoint Mortgage Servicing. 
Significant errors in account processing have resulted in an unjust delinquency status on my account, which I believe violates my consumer rights and has caused emotional and mental harm, as well as complications in my ongoing bankruptcy process. 
Background : Loan Transfers : o On XX/XX/XXXX, my mortgage loan was transferred from XXXX XXXX XXXX  to Specialized Loan Servicing ( SLS ). 
o XXXX XX/XX/XXXX, my loan was transferred again, this time from SLS to Shellpoint Mortgage Servicing. 
Forbearance Agreement and Errors : o At the time of the transfer from XXXX XXXX to XXXX, I was enrolled in a forbearance plan with XXXX XXXX, deferring payments from XX/XX/XXXX, to XX/XX/XXXX. This agreement was properly documented with the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 
o Immediately after receiving the transfer notice from SLS, I contacted SLS customer service on XX/XX/XXXX, and was informed that I was XXXX months behind on payments ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX ). However, XXXX of these months should have been covered as pre-petition arrears paid by the Trustee, and the other XXXX months were part of the forbearance plan. 
o Despite making a payment of {$2500.00} and another payment of {$5000.00} on XX/XX/XXXX, my account remained inaccurately listed as delinquent. 
Legal and Procedural Failures : o I have thoroughly reviewed documents from my XXXX XXXX  case using the XXXX  online portal. There is no evidence that SLS requested any notices, pleadings, motions, orders, applications, or other documents filed in my bankruptcy case ( XXXX ). This failure contributed to the misapplication of payments and violations of the bankruptcy courts order. 
o By contrast, Shellpoint Mortgage Servicing, upon acquiring my loan, did request all such documents. This discrepancy highlights a clear failure on the part of SLS to comply with legal procedures and accurately maintain my account. 
Emotional and Financial Impact : o The ongoing mismanagement of my account has caused significant emotional and mental distress. Additionally, I have been forced to spend hundreds of dollars and considerable time gathering bank statements and mortgage documents to rectify the situation. Despite showing that my account was current on paper, I was told my account was delinquent, and my request to cancel Private Mortgage Insurance ( PMI ) was denied due to an inaccurately reported poor payment history.

o The lack of transparency and communication between SLS, the Trustee, and myself as the borrower, regarding how payments were being applied, further exacerbated the issue. SLSs decision to file a motion to remove bankruptcy protection without addressing these errors added unnecessary stress to an already challenging situation. 
Consumer Rights Violated : These errors and omissions represent a violation of my rights under the Real Estate Settlement Procedures Act ( RESPA ). RESPA mandates that servicers must maintain accurate records and provide timely and accurate information to consumers. The failure to correctly transfer and acknowledge the terms of my forbearance plan, along with the misapplication of payments during my XXXX XXXX bankruptcy, has caused undue stress, financial hardship, and jeopardized my bankruptcy discharge. 

On XX/XX/XXXX, Shellpoint ( a division of Newrez ) responded to a complaint I, XXXX XXXX, submitted to the Consumer Financial Protection Bureau ( CFPB ), which created Case No. XXXX. The complaint addressed issues regarding the servicing of the above-referenced mortgage, specifically requesting the removal of Private Mortgage Insurance ( PMI ), which has been repeatedly denied. 

Shellpoint 's response to my claim stated that the loan in question was not eligible for PMI removal based on payment history. Shellpoint provided a comprehensive payment history report beginning from the time the loan was transferred to them on XX/XX/XXXX. Additionally, Shellpoint mentioned that a letter was sent to me on XX/XX/XXXX, explaining the reason for the denial, asserting that their records reflected all funds received and properly applied to my account. 

Shellpoint also explained their procedure for posting payments, claiming that once a full monthly mortgage payment was collected, the funds would be applied to the oldest outstanding contractual obligation. However, upon reviewing the payment history report, it is evident that this procedure was not consistently followed. There are several transactions in the payment history report that do not align with this policy. 

When reviewing the payment history report, starting from XX/XX/XXXX, it is clear that a significant number of transactions were wrongfully posted. These include misapplied payments, payments posted in error, reversals, and payments from the bankruptcy trustee that were not applied correctly. These discrepancies are reflected in the monthly mortgage statements from XX/XX/XXXX through XX/XX/XXXX, which I have attached to this letter for your review. 

Furthermore, I have attached a ledger provided by the Trustee that details the payments made as well as a summary of payment amounts and payment dates that were pulled from statements provided by bank to prove account should be current and has been current. 

This mismanagement of payments has not only affected my ability to have PMI removed but has also caused significant financial and emotional distress. The Homeowners Protection Act of XXXX provides for the automatic termination of PMI once certain conditions are met, and I was entitled to request its cancellation as early as XX/XX/XXXX. The failure to properly apply payments and the denial of my PMI removal request due to an alleged delinquencywhen my mortgage statements clearly show a {$0.00} unpaid balanceconstitutes a violation of my rights. 

I do not trust that Shellpoint will review the details of this case thoroughly and take the necessary steps to rectify the situation by removing the PMI, correcting the misapplied payments, and acknowledging that my account was, in fact, current. 


Conclusion : I do not trust that Shellpoint will review the details of this case thoroughly and take the necessary steps to rectify the situation by removing the PMI and acknowledging that my account was, in fact, current. 

Additionally, emails labeled XXXX and marked urgent were sent on XX/XX/XXXX with no acknowledgement or a response delivered within 5 days and when calling customer service on XX/XX/XXXX i was told to be patient that these types of investigations take time. I can not risk or jeopardize my bankruptcy discharge when the Final Cure notice is sent and part of that is confirming my account is current and not delinquent. For the past XXXX payments since this company took over from SLS, i had to call and ask them to apply my payments to the unpaid balance because they just leave it in a suspense account so that is the reason why I am filing a formal complaint with the Consumer Financial Protection Bureau ( CFPB ). 
Thank you for your attention to this matter

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