Consumer complaint received 2025-11-08 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
Consumer Financial Protection Bureau XXXX XXXX and XXXX Framework Submission Subject : Coordinated Mortgage Servicing Fraud, Accounting Manipulation, and Enrichment Scheme Primary Entities : XXXX XXXX XXXX, NewRez LLC, Shellpoint Mortgage Servicing, XXXX XXXX XXXX XXXX XXXX XXXX XXXX Supporting Evidence : CFPB Complaint XXXX # ( list XXXX XXXX ) + audio transcripts + servicing ledgers + metadata images Introduction XXXX XXXX and Corrupt Organizations ( XXXX ) Framework This submission establishes the existence of a continuing criminal enterprise composed of XXXX XXXX XXXX, its wholly owned subsidiaries NewRez LLC and Shellpoint Mortgage Servicing, and its retained legal counsel XXXX, XXXX, XXXX XXXX XXXX XXXX XXXX XXXX, with the participation and enrichment of multiple investment banks and insiders. The enterprises conduct spans mortgage servicing, securities reporting, and legal certification functions, coordinated for the purpose of financial enrichment through deception, concealment, and coercion. Its operational nucleus lies in a single integrated servicing system that manipulates consumer payments, falsifies corporate disclosures, and insulates its actors throu Systemic Consumer Harm and Market-Wide Impact The pattern of conduct established in both pending and resolved actions against NewRez LLC XXXX Shellpoint Mortgage Servicing XXXX and parent XXXX XXXX XXXX demonstrates that the violations are not isolated clerical errors, but symptoms of a uniform servicing architecture that injures every consumer whose mortgage is routed through these entities. XXXX. Structural Misapplication of Payments Across multiple jurisdictionsincluding XXXX v. XXXX Mortgage XXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX XXXX XXXX ), and the current CFPB complaint databaseborrowers report identical failures to credit payments as of the date received. Your own account shows more than {$100000.00} held in unapplied suspense, yet monthly statements assess delinquency and fees. This mirrors the XXXX v. NewRez allegations of inflated unapplied balances and phantom late fees. Under XXXX C.F.R. XXXX ( c ) ( XXXX ) ( XXXX XXXX ) and XXXX XXXX. XXXX ( k ) ( XXXX ) ( C ) ( RESPA ), this practice constitutes a prohibited servicing act. The systemic replication of that violation across portfolios means every consumers amortization schedule, credit history, and equity position is corrupted. XXXX. False XXXX and XXXX XXXX Servicers routinely threaten foreclosure even when internal ledgers acknowledge that funds are present but misallocated. In your evidence, Shellpoint agents confirmed receipt of payments on XX/XX/XXXX yet issued non-payment threats on later callsconduct meeting the XXXX XXXX, XXXX U.S.C. XXXX, definition of extortion under XXXX of right. The same fact pattern appears in XXXX v. NewRez LLC ( XXXX. XXXX. ) and XXXX v. Shellpoint Mortgage Servicing ( XXXX. Md. ), establishing a nationwide blueprint for coercive servicing. XXXX. Obstruction of Error Resolution and Federal Oversight The enterprises wrong company response to RESPA Notices of XXXX that complaints were mis-directed despite consolidated ownershipis a deliberate obstruction under XXXX U.S.C. XXXX and violates XXXX C.F.R. XXXX ( XXXX ). Every consumer invoking statutory review rights is met with the same misrepresentation, depriving the public of the protections XXXX codified through XXXX XXXX XXXX XXXX ). XXXX. Economic and Psychological Damage Consumers suffer cumulative harms that regulators have recognized as unfair, deceptive, or abusive acts or practices ( UDAAPs ) under XXXX U.S.C. XXXX : XXXX : late fees, negative amortization, inflated escrow shortages, and loss of refinance eligibility. Credit : false delinquency reporting to XXXX XXXX XXXX U.S.C XXXX XXXX ( a ). Emotional : stress, reputational harm, and loss of housing stabilitythe same categories compensated in CFPB XXXX XXXX XXXX Bank XXXX. ( XXXX XXXX XXXX ). Your recordwhere Shellpoint issued a foreclosure threat while holding documented fundsdemonstrates these harms at the micro level, while the national docket of similar suits proves macro-level replication. XXXX. Market Integrity and Investor Deception Because XXXX XXXX consolidates subsidiary servicing income and uses those revenues to justify public equity sales ( as in its {$750.00} XXXX ATM program ), every falsified consumer ledger inflates corporate earnings. This constitutes a false statement of material fact under XXXX U.S.C. XXXX ( b ) and XXXX C.F.R. XXXX, mirroring SEC precedents such as SEC v. XXXX XXXX XXXX. XXXX. XXXX ). When millions of consumer accounts are handled through the same unlawful accounting method, both retail borrowers and capital-market investors are defrauded simultaneouslythe dual-victim hallmark of a racketeering enterprise. Conclusion : Public Harm Beyond Individual Accounts The identical misconduct confirmed in your casefunds sequestered, statements falsified, wrong company denials, and intimidation via foreclosure noticesappears across dozens of federal dockets, CFPB complaint records, and settlement orders. This establishes : XXXX. Continuity : the enterprise has operated with the same unlawful methods for years ( XXXX ). XXXX. Relationship : the acts are interdependent across XXXX, NewRez, and Shellpoint structures. XXXX. XXXX XXXX : every consumer loan they service is exposed to the same risk of financial and legal injury. Accordingly, the matter transcends private dispute and constitutes a systemic threat to consumer financial protection and market integrity, warranting full enforcement under XXXX U.S.C. XXXX ( b ) and referral to the DOJ and SEC for coordinated XXXX and securities-fraud prosecution. Introduction & Background of Servicing Entities The mortgage-servicing group composed of XXXX XXXX XXXX XXXX XXXX parent ), NewRez LLC XXXX XXXX subsidiary ) and Shellpoint Mortgage Servicing ( operating arm ) has drawn increasing regulatory, consumer-class action, and investor scrutiny over multiple jurisdictions and legal theories. These exposures provide a credible backdrop for alleged enterprise misconduct under the XXXX XXXX and Corrupt Organizations Act ( XXXX ) and federal consumer protection statutes : In XXXX XXXX NewRez LLC XXXX Shellpoint Mortgage Servicing, No. XXXX ( D. Md. ), borrowers alleged that Shellpoint systematically failed to provide required notices under the Real Estate Settlement Procedures Act ( RESPA ) and imposed fees in violation of the Maryland Consumer Debt Collection Act and the Maryland XXXX XXXX XXXX. In XXXX XXXX NewRez LLC XXXX Shellpoint Mortgage Servicing and The Bank of New York XXXX XXXX XXXX XXXX XXXX ( D. XXXX. ), the complaint alleges a pattern of zombie second-mortgage practices : inflated balances, failure to send statements to XXXX bankruptcy borrowers, and foreclosure threats on dormant liens. In XXXX XXXX NewRez LLC XXXX Shellpoint Mortgage Servicing, XXXX ( S.D. XXXX. ), a class action alleges that Shellpoint ( via acquired entity SLS ) charged pay-to-pay telephone payment fees up to {$7.00} far above processor cost thereby over-charging borrowers in violation of the Texas Fair Debt Collection XXXX and like statutes in other states. Consumer-complaint data filed with the CFPB show multiple narratives against NewRez/Shellpoint for XXXX XXXX XXXX, including failure to timely credit or apply payments, inadequate responses to RESPA Notices of XXXX, and misleading statements of arrearage. Recent media reporting characterises XXXX XXXX XXXX a legal and foreclosure storm in XXXX as lawsuits mount and servicing portfolio issues proliferate. Independent class-action settlements exist : for example, Shellpoint agreed XXXX a {$500000.00} settlement in XXXX to resolve claims of misleading statements sent to borrowers in XXXX XXXX forbearance. Corporate disclosures and filings indicate Rithm Capital ( formerly New Residential ) consolidates the servicing revenues of NewRez and Shellpoint and sells equity via XXXX ( ATM ) offerings tied to those revenues. I. Overview The enterprise consists of XXXX XXXX XXXX and its wholly-owned subsidiaries NewRez LLC and Shellpoint Mortgage Servicing, aided by XXXX XXXX XXXX XXXX XXXX counsel and XXXX investment banks as distribution agents for XXXX {$750.00} XXXX ATM equity program. Evidence demonstrates an ongoing pattern of servicing manipulation, false disclosures, and investor enrichment through unapplied-fund misallocation, constituting predicate acts under XXXX U.S.C. XXXX, XXXX, XXXX, XXXX, XXXX, and XXXX ( d ). XXXX. Organizational Structure and Control Layer Function Primary Actors Parent Entity Controls mortgage revenues, SEC reporting, and stock issuances XXXX XXXX ( XXXX ), XXXX XXXX XXXX ( XXXX ), XXXX XXXX ( XXXX ) Servicing Subsidiary Implements accounting and fund allocation policies XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX Operating Arm Executes collection and ledger activity XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX Provides filing cover and opinion letters XXXX XXXX XXXX ( XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX ) Investor Syndicate Profits from inflated earnings XXXX, XXXX XXXX, XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX XXXX. Statutory Violations and XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX C.F.R. XXXX ( c ) ( XXXX ) ; XXXX U.S.C. XXXX ( a ) ( XXXX ) ( A ) XXXX v. XXXX Mortgage XXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX XXXX XXXX ) Payments diverted into unapplied accounts ; late fees assessed contrary to XXXX XXXX XXXX Failure XXXX C.F.R. XXXX XXXX XXXX Bank XXXX XXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX. XXXX XXXX ) Ignored or false responses ( wrong company ) to RESPA notices. XXXX XXXX XXXX XXXX. XXXX ( a ), XXXX ( a ) ( XXXX ) ( B ) CFPB XXXX XXXX XXXX Bank XXXX. ( XXXX XXXX XXXX ) False statements of delinquency and corporate responsibility. Mail / XXXX XXXX XXXX U.S.C. XXXX, XXXX XXXX v. XXXX XXXX, XXXX XXXX XXXX ( XXXX ) XXXX of fraudulent statements and records through interstate channels. Bank XXXX XXXX XXXX. XXXX United States v. XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) Diversion of mortgage payments to internal pools to inflate revenue. False SEC Disclosures XXXX U.S.C. XXXX ; XXXX U.S.C. XXXX SEC XXXX XXXX, XXXX XXXX XXXX ( C.D. XXXX. ) Certifying filings omitting subsidiary liabilities and CFPB exposure. Extortion ( XXXX XXXX ) XXXX U.S.C. XXXX United States v. Enmons, XXXX XXXX XXXX ( XXXX ) Foreclosure threats despite acknowledged funds ; coercive collection. Obstruction of XXXX XXXX U.S.C. XXXX XXXX v. XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) Concealment of violations after CFPB / TNDFI notice. XXXX XXXX XXXX U.S.C. XXXX ( d ) H.J. XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) ; United States XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX. XXXX XXXX ( D.D.C. XXXX ) Coordinated enterprise across subsidiaries and agents for ongoing fraudulent gain. IV. XXXX XXXX and XXXX Closed-ended continuity : XXXX repetitive predicate acts ( payment misallocation, false notices, threats ). Open-ended continuity : Enterprise structure persists, creating ongoing risk to consumers and markets. Each act satisfies the pattern of racketeering activity under XXXX, XXXX. v. XXXX XXXX, XXXX XXXX XXXX ( XXXX ). Insider Trading and Certifier Liability Matrix Integrated Legal Interpretation Tier XXXX XXXX XXXX XXXX ( Parent Entity ) XXXX XXXX XXXX XXXX XXXX Form XXXX Transaction ( XXXX / XXXX / XXXX ) : XXXX shares @ {$11.00} {$1.00} XXXX value. XXXX : XXXX XXXX XXXX XXXX ( XXXX ) : Converted Class B Profit Units to cash during active concealment of NewRez/Shellpoint liabilities ; violates Rule XXXX, SOX XXXX, and XXXX where certifiers profit from materially misstated consolidated results. XXXX XXXX XXXX Chief Financial XXXX Form XXXX Transaction ( XXXX / XXXX / XXXX ) : XXXX shares + XXXX Class B Profit Unit tranches @ {$11.00} {$1.00} XXXX. Enrichment ( XXXX ) : Granted equity based on overstated servicing-segment earnings ; as CFO and SOX certifier, bears primary liability under SEC v. XXXX, XXXX XXXX XXXX. XXXX XXXX ( S.D.N.Y. XXXX ). XXXX XXXX XXXX XXXX XXXX XXXX XXXX Transaction ( XXXX / XXXX / XXXX ) : XXXX shares @ {$11.00}. Enrichment ( XXXX ) : Oversaw subsidiary legal reporting ; participated in filing false SEC certifications while supervising ongoing RESPA and XXXX XXXX violations direct predicate acts under XXXX U.S.C. XXXX ( XXXX ) ( XXXX ). XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX / XXXX / XXXX ) : XXXX shares @ {$11.00} ( XXXX XXXX XXXX ). XXXX ( XXXX ) : Benefited from director-stock issuance while subsidiary revenues were inflated through improper capitalization of unapplied mortgage payments. XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX / XXXX / XXXX ) : XXXX shares @ {$11.00} ( XXXX XXXX XXXX ). XXXX ( XXXX ) : Timing aligns with inflated XXXX XXXX earnings attributed to the Servicing segment, satisfying the XXXX v. XXXX XXXX inference of scienter for XXXX actions. XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX / XXXX / XXXX ) : XXXX shares @ {$11.00} ( XXXX XXXX XXXX ). XXXX ( XXXX ) : Profited from compensation plan executed during known violations of XXXX C.F.R. XXXX ( c ) ( XXXX ) ( payment-crediting ). XXXX XXXX XXXX XXXX XXXX ( XXXX / XXXX / XXXX ) : XXXX shares @ {$11.00} ( XXXX XXXX XXXX ). XXXX ( XXXX ) : Stock granted within XXXX days of CFPB escalation regarding NewRez payment allocationwillful ignorance sufficient for reckless misrepresentation liability. XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX / XXXX / XXXX ) : XXXX shares @ {$11.00} ( AIF XXXX XXXX XXXX ). XXXX ( XXXX ) : Equity award contemporaneous with Shellpoints classification of unapplied-funds income as revenueconstitutes unjust enrichment under XXXX ( XXXX ) of Restitution XXXX. Tier XXXX NewRez LLC ( Servicing Subsidiary ) Corporate Officers : XXXX XXXX ( XXXX ), XXXX XXXX ( Head of Originations ), XXXX XXXX ( Head of Servicing ), XXXX XXXX ( XXXX ), XXXX XXXX ( XXXX ), XXXX XXXX ( Chief XXXX & XXXX ), XXXX XXXX ( XXXX ), XXXX XXXX ( XXXX ), XXXX XXXX ( XXXX ), XXXX XXXX ( XXXX ), XXXX XXXX ( XXXX ). Liability Vector : Each participated in or benefited from deferred-compensation plans indexed to XXXX stock appreciation, which was artificially supported by revenue from unlawfully retained borrower payments. Violations include XXXX C.F.R. XXXX ( b ) ( XXXX ) ( failure to correct payment-posting errors ) and XXXX U.S.C. XXXX ( k ) ( servicer duties ). Precedents : XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) ; XXXX XXXX XXXX Mortgage XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) both holding servicers liable for misallocation and misrepresentation of payments. Tier XXXX Shellpoint Mortgage Servicing ( NewRez Operating Arm ) Key Executives : XXXX XXXX ( XXXX ), XXXX XXXX ( Co-CEO ), XXXX XXXX ( VP Recovery ), XXXX XXXX ( VP Servicing Strategy & Process Improvement ), XXXX XXXX ( XXXX Bankruptcy ), XXXX XXXX ( XXXX XXXX ), XXXX XXXX ( XXXX Loss Mitigation ), XXXX XXXX ( XXXX XXXX Analytics ). XXXX XXXX : Performance bonuses tied to cash-flow throughput metrics incorporating unapplied-funds balancesdirectly contravening XXXX C.F.R. XXXX ( c ) ( XXXX ) ( payment-application rule ) and XXXX C.F.R. XXXX ( XXXX ) ( error-resolution ). Such actions further qualify as predicate acts of mail and wire fraud under XXXX U.S.C. XXXX and XXXX, sustaining XXXX jurisdiction ( Sedima v. XXXX XXXX, XXXX XXXX XXXX ( XXXX ) ). XXXX XXXX XXXX XXXX. Consolidation under XXXX ASC XXXX : XXXX XXXX certifies the financials of NewRez and Shellpoint, creating joint and several responsibility for any misstatement. XXXX. False Wrong Company Responses : constitute willful misrepresentation under XXXX XXXX. XXXX and deceptive-practices violations of XXXX U.S.C. XXXX ( CFPB XXXX authority ). XXXX. Investor Reliance : Each insider sale occurred after the deceptive wrong company filings were issued to regulatorsevidence of knowledge and motive consistent with SEC XXXX Texas XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ). XXXX. Pattern of XXXX : At least XXXX predicate acts ( mail fraud, wire fraud, securities fraud ) within 10 years satisfy XXXX U.S.C. XXXX ( XXXX ). Regulatory and Civil Exposure CFPB Complaints ( XXXX Filed XXXX ) : Demonstrate systemic failure to apply payments, issue XXXX acknowledgments, or correct errors within statutory deadlines. Tennessee XXXX Inquiry : Triggers multi-jurisdictional enforcement ; pattern meets criteria for referral under XXXX U.S.C. XXXX ( c ) ( XXXX ) and XXXX ( XXXX ). DOJ Exposure : Possible criminal referral for mail/wire fraud and obstruction of agency proceedings under XXXX U.S.C. XXXX. Damages and Relief Economic Loss : $ XXXX in unapplied funds and ledger distortion. Punitive and Statutory Damages : {>= $1,000,000} under RESPA XXXX ( f ) and XXXX XXXX ( c ). Emotional and Credit Damage : Resulting from false delinquency and threat letters while account was current. V. Regulatory Misrepresentation Wrong Company Defense XXXX and NewRez routinely responded to CFPB and XXXX complaints claiming wrong company. SEC filings prove 100 % ownership and consolidation of Shellpoint revenues. Statutory Exposure : XXXX U.S.C. XXXX ( k ) ( XXXX ) ( C ) ( RESPA misrepresentation ) XXXX C.F.R. XXXX ( XXXX ) ( XXXX ) ( i ) ( failure to provide substantive response ) XXXX U.S.C. XXXX ( b ) ; XXXX C.F.R. XXXX ( false material statement to investors ) XXXX U.S.C. XXXX ( false statement to federal agency ) XXXX U.S.C. XXXX ( SOX criminal certification liability ) Interpretation : The defense constitutes a knowing attempt to evade federal jurisdiction and maintain enrichment through false corporate distinctionqualifying as a XXXX predicate under XXXX ( XXXX ) ( B ). VI. Insider Trading & Certifier Liability Matrix Distribution and XXXX XXXX Investor XXXX XXXX XXXX Investor and XXXX XXXX XXXX XXXX and XXXX XXXX XXXX XXXX XXXX XXXX {$750.00} XXXX At-the-Market ( ATM ) Equity Offering, as disclosed in its Form XXXX ( XXXX XXXX XXXX ), enumerated XXXX co-managing sales agents and underwriters. Each agent acted under contractual authority to sell shares from time to time on XXXX behalf into the open market. These entities, and the individual officers identified below, were directly notified of the ongoing allegations of securities falsification and servicing-based enrichment. Their continued participation following notice creates exposure under XXXX U.S.C. XXXX ( d ) ( XXXX conspiracy ), XXXX U.S.C. XXXX ( a ) ( control-person liability ), and XXXX ( XXXX ) of XXXX XXXX ( b ) ( knowing participation in tortious conduct ). Institution / XXXX Affiliation Function in Enterprise Legal Exposure XXXX XXXX XXXX XXXX XXXX. Co-Manager / Sales Agent Received and executed XXXX ATM equity sales under XX/XX/XXXX Form XXXX ; notified of servicing-fraud exposure. XXXX U.S.C. XXXX ( wire fraud ), XXXX ( d ) ( XXXX conspiracy ) XXXX XXXX XXXX XXXX XXXX. Co-Manager/ XXXX XXXX Participated in continuing ATM program following CFPB escalation; acted despite knowledge of violations. XXXX U.S.C. XXXX ( money laundering ), XXXX ( d ) XXXX XXXX XXXX XXXX Distribution Agent Executed trades benefiting from inflated Rithm earnings derived from NewRez/Shellpoint revenues. XXXX U.S.C. XXXX ( b ) ; XXXX C.F.R. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Coordinated sales while institution simultaneously held investment interests in XXXX XXXX trusts. XXXX U.S.C. XXXX ( d ) ; XXXX U.S.C. XXXX XXXX XXXX XXXX XXXX XXXX XXXX Distribution Agent Processed transactional filings under identical metadata ; complicit in resale of tainted securities. XXXX U.S.C. XXXX ( securities fraud ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX. Co-Manager Received investor notice documenting enforcement risk; failed to halt program. XXXX U.S.C. XXXX ( d ) ; XXXX U.S.C. XXXX J.T. XXXX XXXX XXXX XXXX XXXX Co-Manager Continued capital-raising activities after notice ; integrated illicit revenue streams. XXXX U.S.C. XXXX, XXXX ( d ) XXXX XXXX XXXX XXXX XXXX XXXX Co-Manager Accepted direct written notification of scheme ; distributed proceeds via ATM sales. XXXX U.S.C. XXXX ( a ) ( XXXX ) ( B ) ( i ) ; XXXX ( d ) Underwriter / Enrichment Layer Under the XX/XX/XXXX {$750.00} XXXX ATM XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX ) XXXX XXXX ( XXXX XXXX ) XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX ) XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX ) XXXX XXXX XXXX XXXX ( XXXX. XXXX ) XXXX XXXX XXXX XXXX ( XXXX XXXX ) Interpretation Each of these XXXX named officers served under institutions explicitly listed in Rithm Capitals XX/XX/XXXX Form XXXX ( Exhibit XXXX ) as sales agents for the {$750.00} XXXX ATM equity program. Because they were directly copied on communications documenting the servicing and accounting fraud, their subsequent participation satisfies the knowing agreement standard under XXXX U.S.C. XXXX ( d ) ( United States v. XXXX, XXXX XXXX XXXX ( XXXX ) ; XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) ). Shellpoint Mortgage Servicing XXXX Layer Operational Arm of Enterprise Finding Shellpoint Mortgage Servicing ( SMS ), a division operating under the NewRez LLC license, functions as the servicing apparatus for XXXX XXXX XXXX Its executives and department heads directly executed the borrower-facing misconduct that generated unlawful cash-flow inflations later consolidated into Rithms reported earnings. Shellpoints personnel acted as the functional endpoint of the enterprise, producing the predicate acts of mail, wire, and accounting fraud that sustained the parent corporations securities gains. Evidence Internal call transcripts ( XXXX XXXX ) and CFPB complaint filings document continuous misapplication of payments, concealment of unapplied funds exceeding {$100000.00}, and issuance of deceptive delinquency communications while accounts were current. These actions were performed under the authority of Shellpoints servicing leadership and recorded within NewRez-branded portals. Title Name Primary Role Liability Nexus / Predicate Act XXXX XXXX XXXX Dual-hatted XXXX across NewRez and Shellpoint. Authorized application of borrower payments into suspense to inflate servicing liquidity ; predicate act under XXXX U.S.C. XXXX ( wire fraud ). XXXX XXXX XXXX XXXX sign-off on payment-application policy. Endorsed wrong company response protocol to CFPB inquiries ; violation of XXXX U.S.C. XXXX ( false statements ). XXXX XXXX XXXX XXXX, XXXX Oversaw collections and foreclosure pipeline. XXXX issuance of automated foreclosure threats while unapplied funds existedconstituting attempted extortion and unfair practice under XXXX U.S.C. XXXX ( a ). XXXX XXXX XXXX, Servicing Strategy & Process Improvement Engineered data-processing schema linking NewRez and Shellpoint systems. Enabled cross-system data manipulation that disguised unapplied-funds totals ; breach of XXXX C.F.R. XXXX ( c ) ( XXXX ) ( crediting of payments ). XXXX XXXX XXXX, Bankruptcy Managed borrower accounts under bankruptcy protection. Failed to apply post-petition payments timely, violating XXXX U.S.C. XXXX ( i ) and RESPA XXXX ( k ). XXXX XXXX XXXX, XXXX XXXX escrow and hazard-insurance remittances. Misallocated escrow surpluses into suspense accounts, creating false delinquency records. XXXX XXXX XXXX, XXXX XXXX XXXX loan-modification pipeline. Concealed payment re-application tasks confirmed complete in call logs ; violation of XXXX C.F.R. XXXX ( loss-mitigation process ). XXXX XXXX XXXX, XXXX XXXX XXXX for performance and audit metrics. Produced internal metrics rewarding retention of unapplied balances ; foundational to Rithms inflated cash-flow throughput. XXXX XXXX leadership orchestrated a servicing model that contravened federal consumer-finance statutes while enriching parent executives through distorted earnings. The call-record evidence establishes knowledge and pattern : each agent acknowledged unapplied funds, confirmed payments, and yet continued delinquency reporting. Key precedents amplify liability : XXXX v. XXXX Mortgage XXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX XXXX XXXX ) : servicer liability for misapplied payments under RESPA XXXX ( f ). Marais v. XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) : failure to investigate borrower disputes constitutes independent damages. XXXX v. XXXX Mortgage XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) : repetitive misapplication satisfies pattern for treble damages. These rulings establish that each missed correction and false delinquency notice is a discrete statutory violation and XXXX predicate. When multiplied across tens of thousands of loans serviced under the same scheme, XXXX acts become the operational backbone of a XXXX ( c ) racketeering enterprise. XXXX XXXX XXXX. Criminal Exposure : Continuous misrepresentations to borrowers and regulators satisfy mail- and wire-fraud predicates ( XXXX U.S.C. XXXX, XXXX ) and false-statement liability ( XXXX ). XXXX. Civil Damages : Each RESPA error-resolution failure carries per-violation statutory damages up to {$2000.00} per borrower, multiplied across portfoliosplus treble recovery under XXXX XXXX ( c ). XXXX. Regulatory Sanctions : CFPB and Tennessee XXXX possess concurrent jurisdiction ; patterns mirror prior enforcement in In re XXXX XXXX, File No. XXXX. XXXX. XXXX XXXX : Shellpoints manipulation of ledgers directly increased XXXX XXXX reported earnings, establishing parent-subsidiary unity under XXXX XXXX XXXX and negating any separate-entity defense. XXXX. Damages Quantification : Current documented loss {$100000.00} in unapplied funds plus consequential and punitive damages of {$5.00} millionconstitutes both individual injury and representative harm warranting class treatment. Expanded Enterprise Roster NewRez LLC Leadership Layer Finding NewRez LLC operates as a wholly owned subsidiary of XXXX XXXX XXXX, functioning as the parents licensed mortgage originator and primary residential loan servicer. Despite public separation rhetoric, XXXX officers report upward to the XXXX XXXX XXXX committee, participate in the same deferred-compensation pool, and certify ledger data ultimately consolidated in XXXX XXXX and XXXX filings. Evidence Metadata from the SEC XXXX prospectus and NewRez organizational materials confirms direct hierarchical and financial integration between XXXX and its subsidiaries ( XXXX XXXX, XXXX ). Internal filings and CFPB complaint responses further reveal that all operational communications from Shellpoint Mortgage Servicing route through XXXX systems. Title Name Primary Role Liability Nexus / XXXX XXXX XXXX XXXX XXXX XXXX approval authority for all Servicing and Originations revenue reports. Authorized subsidiary attestations underpinning overstated cash-flow ratios used in XXXX equity-based XXXX formulastriggering exposure under XXXX U.S.C. XXXX ( b ) and XXXX C.F.R. XXXX. XXXX XXXX XXXX of XXXX XXXX broker and lender channels. Tied to improper cross-posting of fees into Servicing income lines, contravening XXXX C.F.R. XXXX ( d ). XXXX XXXX XXXX of XXXX / XXXX of Shellpoint XXXX role across entities. Maintained systems that converted unapplied borrower payments into cash-flow throughput performance metrics ; predicate acts under XXXX XXXX. XXXX ( wire fraud ). XXXX XXXX XXXX XXXX XXXX XXXX of servicing policy and data management. Failure to maintain XXXX error-resolution workflow in violation of XXXX C.F.R. XXXX ( XXXX ). XXXX XXXX XXXX XXXX XXXX XXXX reporting to XXXX XXXX enterprise analytics. Participation in consolidated reporting that ignored regulatory exposure, violating XXXX XXXX XXXX XXXX XXXX known trends and uncertainties ). XXXX XXXX XXXX XXXX & XXXX XXXX Provided internal certification to XXXX XXXX. Contributed to wrong company CFPB responses while acknowledging consolidated ownershipconstituting XXXX U.S.C. XXXX ( false statements ). XXXX XXXX XXXX XXXX XXXX XXXX subsidiary ledgers for consolidation. XXXX manipulated unapplied-funds balances ; liable under SOX XXXX XXXX and SEC v. XXXX XXXX XXXX XXXX. XXXX XXXX XXXX XXXX XXXX Managed cross-platform data link between NewRez and Shellpoint portals. Authorized data structures that misrepresented payment status, violating XXXX U.S.C. XXXX ( k ). XXXX XXXX XXXX XXXX XXXX Responsible for growth and partnership revenue. Benefited through incentive structures indexed to inflated cash-realization metrics. XXXX XXXX XXXX XXXX XXXX XXXX borrower-communication campaigns. Approved misleading account current messaging while internal ledgers showed unapplied balancesUDAAP breach under XXXX U.S.C. XXXX. XXXX XXXX XXXX XXXX XXXX XXXX bonus pool and performance metrics. Distributed incentive pay derived from illegal income recognition, satisfying the financial gain element under XXXX U.S.C. XXXX ( XXXX ) ( B ) ( XXXX ). Interpretation Each XXXX occupied a node in the servicing data chain that transformed borrower payments into revenue and bonus metrics. The identical timing between their internal certifications and Rithms XXXX XXXX insider-trading window supports the inference of coordinated knowledge and profit motive ( XXXX XXXX XXXX XXXX & Rights, XXXX XXXX XXXX XXXX XXXX ) ). Under XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ), servicers are directly liable for failure to investigate and correct payment errors regardless of parent directives. Because XXXX consolidates NewRez results, every misapplied dollar inflates parent earningsbinding both tiers under XXXX ASC XXXX and SOX certification liability. XXXX XXXX XXXX. Regulatory Exposure : Repeated breaches of RESPA XXXX ( k ) and TILA XXXX expose both NewRez and XXXX to CFPB XXXX and DOJ referral. XXXX. Civil Exposure : Pattern of misapplied payments and false delinquency threatens class-action replication ( Rawlings v. XXXX Mortgage XXXX XXXX XXXX ). XXXX. XXXX XXXX : Coordinated enrichment through data manipulation and insider sales sustains a XXXX XXXX ( c ) enterprise theory with predicate acts of wire fraud, mail fraud, and securities fraud. XXXX. Investor XXXX : Earnings distortion and insider disposition reduce investor confidence, aligning with the reckless disregard standard in XXXX re XXXX XXXX XXXX, XXXX. XXXX. XXXX XXXX and XXXX XXXX {$100000.00} in payments documented as unapplied in violation of XXXX C.F.R. XXXX ( c ) ( XXXX ). Psychological and financial harm from false delinquency and foreclosure threats. Material credit damage and increased interest costs. Aggregate enterprise enrichment through inflated servicing income and XXXX

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