Consumer complaint received 2025-11-19 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
URGENT : Systemic Servicing Platform Failure at NewRez/Shellpoint Creating Imminent Risk of Wrongful Foreclosures, VA Loan Violations, and Conflicting Credit/BK Reporting ( API Breakdown + Orphan-Loan Indicators ) Primary Consumer : XXXX XXXX Product : VA Mortgage Servicer : NewRez LLC d/b/a Shellpoint Mortgage Servicing XXXX XXXX : XXXX XXXX XXXX ) I. Summary of Immediate Harm NewRezs servicing platform is now failing at a software-architecture level. The system is returning XXXX XXXX and XXXX Unauthorized errors across core mortgage-servicing API calls including : XXXXXXXX XXXX XXXXXXXX XXXX These error codes mean the servicer can not retrieve federally required disclosures ( Reg Z ), can not retrieve loan details ( RESPA ), and can not properly authenticate borrower records ( FCRA/FDCPA ). This is a direct, active risk of wrongful foreclosure and systemic data corruption affecting me and all other borrowers on this platform. 



XXXX. Nature of the Problem I am a XXXX veteran with a XXXX mortgage. My loan is being serviced off a platform that is returning broken authentication, invalid permission states, missing legal disclosures, and loan-detail failures. This means : They can not verify ownership They can not verify balances They can not access legal disclosures They can not apply or retrieve payments They can not retrieve FDCPA communication preferences They can not validate whether foreclosure actions or delinquency statuses are lawful This is not a glitch. 
This is a systemic data-integrity collapse in a federal mortgage-servicing environment. 



III. Evidence of System Collapse As shown in the screenshots : There was an error retrieving the terms and conditions. 
XXXX XXXX Unauthorized on loan details. 
XXXX XXXX Unauthorized on payment status. 
XXXX XXXX An error has occurred on FDCPA-required communication-preference retrieval. 

401 Unauthorized = the system does not recognize the borrower or loan as valid or authorized.

400 Bad Request = the servicers system can not process the loan data or its identifiers.

A mortgage servicer can not lawfully not recognize a borrower in a live servicing relationship. 



IV. Why This Is a Legal Emergency A. RESPA / Regulation X ( 12 C.F.R. 1024.35, 1024.36 ) API failure preventing access to loan details is a direct violation of : 1024.35 ( b ) ( 1 ) failure to correctly apply payments 1024.35 ( b ) ( 2 ) failure to maintain accurate information 1024.35 ( b ) ( 6 ) failure to provide accurate escrow information 1024.35 ( b ) ( 10 ) Any other error relating to the servicing of a borrowers mortgage loan If the system itself is corrupted, every regulatory obligation collapses.

B. TILA / Regulation Z ( 12 C.F.R. 1026.41 ) The system can not retrieve legally required mortgage disclosures.

Failure to retrieve 1026.41 periodic-statement information is a direct violation.

C. FDCPA ( If NewRez is acting as a debt collector ) The 400/401 errors prevent required disclosures, violating : 15 U.S.C. 1692e ( 2 ) false representation of amount or legal status of a debt 15 U.S.C. 1692f ( 1 ) collection of amounts not permitted by law When the system reports delinquency but can not retrieve the loan, it is a per se misleading act.

D. FCRA ( 15 U.S.C. 1681s-2 ) The same platform that can not authenticate the loan is furnishing credit data to Experian showing : Discharged through Chapter 7 Paid off Closed Never late While ongoing collection efforts present the loan as live, delinquent, and in foreclosure trajectory.

This violates : 1681s-2 ( a ) ( 1 ) ( A ) furnishing info known to be inaccurate 1681s-2 ( b ) failure to reasonably investigate and correct disputes The API errors show the underlying system can not validate anything it is reporting.

E. Bankruptcy Code ( 11 U.S.C. 524 ( i ), 105 ( a ) ) Multiple courts ( XXXX, XXXX, XXXX, XXXX ) have held that misapplied payments and inflated balances after bankruptcy constitute a discharge-injunction violation. 
A system unable to retrieve loan data is incapable of correctly crediting payments. 



F. Dodd-Frank UDAAP ( 12 U.S.C. 5531, 5536 ) A servicing platform returning 400/401 errors during foreclosure-risk conversations is the definition of : Unfair Deceptive Abusive A servicer can not claim delinquency when its system can not retrieve the loan.

G. VA Servicing Rules ( 38 C.F.R. 36.4350 ) VA loans require heightened accuracy, consistency, and communication.

A system that can not authenticate or display loan data is out of compliance.

V. Pattern & Practice NewRez/Shellpoint/Rithm already appear in federal litigation and state enforcement actions for : Misapplied payments Illegal inspection fees Zombie mortgages Bankruptcy-related balance inflation False credit reporting RESPA violations Data-integrity failures These new API failures suggest a full-platform data governance breakdown.

VI. What I Am Requesting from CFPB I request CFPB immediately : Open an enforcement investigation into NewRez and XXXX XXXX. 
Require NewRez to freeze any foreclosure or collection activity until a full audit is completed.

Require a full system-level data integrity audit, including : database logs servicing-platform API logs access-control logs payment-application records error traces for the 400/401 failures Require NewRez to provide the correct loan balance, escrow balance, and amortization history.

Require correction of contradictory Experian reporting.

Evaluate this as a pattern-and-practice UDAAP violation affecting all borrowers using the platform.

This is no longer a my loan issue.

This is a servicing-platform failure affecting every loan in their system.

VII. Damages ( Requested ) Immediate suspension of all negative credit reporting Removal of all late fees, delinquency coding, and charges Full loan accounting audit Compensation for emotional and psychological harm ( XXXX veteran ) System-wide relief for similarly affected VA borrowers Consideration of civil penalties

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