Consumer complaint received 2024-10-09 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Shellpoint Partners, LLC
State: CO

Complaint narrative:
My home mortgage has recently been transitioned from " Specialized Loan Servicing '' to " Shellpoint Mortgage Servicing '', which as I understand included a change in the company as well as moving my loan to a different system. This occurred at the end of XX/XX/year>, with the first communication from Shellpoint Mortgage Servicing on the XXXX of XX/XX/year> notifying me of a successful account migration. This notification stated that my loan number remained the same, the mortgage terms did not change, and my automatic draft withdrawals would continue as previously scheduled with Specialized Loan Servicing. The next 2 monthly payments occurred without issue and on time. 

However, on XX/XX/year> I received a letter from Shellpoint which claimed that they did not have proof of hazard insurance for my home ( this is contrary to the statements made by them in the previous letter that everything had been migrated successfully ), and would proceed to purchase it for me via escrow at exorbitant rates unless I provided proof of hazard insurance. Within 2 weeks I provided proof of my home insurance to Shellpoint via their online portal, sending them the quote for my insurance renewal ( scheduled for XX/XX/year> ). 

On XX/XX/year> I received a letter identical to the previous one, demanding proof of hazard insurance. I called their customer support line on XX/XX/year> to inquire about the reason for these continued demands. After speaking with XXXX of their representatives ( identified by the email XXXX ), I was told that the issue had been that Shellpoint was unaware of my existing home insurance that was set to expire and renew on XX/XX/year> ( again, this is contrary to their initial communication about a successful account migration ). I was then asked to email my existing policy document to XXXX XXXX at the above email address, and after some time was told that everything was cleared up and the change would go into effect in 1 to 2 days, and I would receive a confirmation letter within 14 days. 

Instead of the confirmation letter, on XX/XX/year> I received 2 letters. One of them, dated XX/XX/XXXX ( clearly backdated to create the appearance of being sent prior to my call ), notified me that because Shellpoint did not receive the requested home insurance information, they are purchasing insurance on my behalf and this has been added to my escrow. The second letter, dated XX/XX/year> ( also clearly backdated ), specified a payment breakdown for the purchased insurance. 

As can be seen from the chronology of this matter, Shellpoint has used unjustifiably aggressive tactics to lie and mislead in their communication with me, ignore the provided evidence, and proceed to place what are effectively fraudulent charges on my account. I have currently cancelled automatic payments to Shellpoint, and have contacted my bank to block future ACH withdrawals made by them from the linked account. Both the documents sent to Shellpoint for proof of my hazard insurance are attached with this complaint submission.

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