Consumer complaint received 2025-08-11 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
I am entering this complaint because my flooring contractor, XXXX XXXX, and I have not received payment for repairs due to flooding which happened to my rental cabin ( not my principal residence ) on XX/XX/XXXX and for which ALL repairs were completed on XX/XX/XXXX. XXXX XXXX XXXX is owed {$2300.00} and I am owed {$4600.00} for a total of {$7000.00} a felony. Shellpoint Mortgage/XXXX XXXX XXXX has stolen the funds which XXXX XXXX XXXX XXXX XXXX XXXX ) sent to them for these payments. Because XXXX paid the claim ( and could care less whether the contractor and I got paid ), I have been instructed by the TN Dept of Commerce and Insurance to file a claim with The Tennessee Department of Financial Institutions, which I mailed today. I am also filing a claim with you because I am concerned about the passage of time it has already been one month since they absconded with these funds. 
A claim payment check was written by XXXX to both the lien holder ( Shellpoint Mortgage ) and myself- which I protested. I said my portion should be sent to me since all repairs were complete except the floor ; and the flooring contractor 's payments should be sent directly to them. XXXX XXXX refused, saying that the check was over {$10000.00}, which it was not ( it was for {$9300.00} ). The check was sent to me first to sign over to the lien holder, Shellpoint Mortgage, which I did. What I thought was Shellpoint 's Insurance Department now appears to be a separate fraudulent company, XXXX XXXX XXXX, hired to process payments to mortgagors. 
The property was in arrears at the time of the flooding and I was notified on XX/XX/year> that the property would be going to auction on XX/XX/year>. I have no problem with that because I was months behind on the mortgage payments. HOWEVER, my understanding is that it is ILLEGAL in Tennessee for insurance payments to be applied to mortgage payments in arrears. 
The property repairs were completed on XX/XX/year>. I felt I had a moral obligation to turn the property over in good shape, which I did - and this money that is still due to me is for repairs that I completed before the money from XXXX XXXX was even sent to Shellpoint. Since that time, both the flooring contractor and I have jumped through hoops to get everything that " XXXX XXXX XXXX '' said they required so they would release the money due to us. Neither of us have received our final checks ( XXXX XXXX XXXX received ONE progress check for {$2300.00} which was made out to both them and me, sent to me, and - imagine I endorsed it and sent it to them, as required ) and it is now XX/XX/year> ; no further payments have been made and the XXXX XXXX XXXX XXXX XXXX shows the account as closed and no one has answered any emails since XX/XX/XXXX. As an indication of how stupid they are, it only shows the one single disbursement mentioned above. Youd think they would at least hide their tracks. 
I originally filed a claim against XXXX XXXX XXXX XXXX with the Tennessee Department of Commerce and Insurance and they responded that XXXX sent the money as required. Well, if the repairs were made and the money didnt get to the policy holder, how is that right? Throughout most of this process, I thought I was dealing with a department at Shellpoint that handled insurance, but apparently XXXX XXXX XXXX ( XXXX  ) is some kind of different company, so I filed a second complaint with the Department of Commerce against XXXX. The reply I got back said that since XXXX had sent the insurance proceeds to the lien holder as required, I now had to take this complaint up with The Tennessee Department of Financial Institutions and it should be against Shellpoint. They also said that I am a third-party when dealing with XXXX and would need to get a lawyer to deal with them. How can that be? I never agreed to have my money sent to a third party that is apparently shielded from any consequences of their fraudulent actions and I certainly cant afford a lawyer to get it back. 
On XX/XX/XXXX, I got this email from my agent at XXXX XXXX : My operations manager and I were able to get in contact with a Shellpoint representative on the phone. Per the representative, they have the checks in process to be mailed out to you to your home address, and it will take 1-2 weeks to be sent to you. 
But on XX/XX/XXXX, when I and some of the people at my Insurance Agency XXXX XXXX XXXX ) were trying to arrange to get checks overnighted ( which of course never came, even though I sent them a pre-paid XXXX  label ), here is the email address for one of the people who has not since replied to my queries : XXXX Shellpointld XXXX So, what is that? Are they an insurance company or a mortgage company? ( That email chain will be part of my uploads ). I believe that email address indicates that XXXX is part of Shellpoint and their single payment to the flooring contractor indicates a knowledge that they are responsible to pay out those funds to us. 
It seems that the simplest process would be to ask Shellpoint what happened to this money? Who has it? Where is it? They certainly didnt send it to me. XXXX XXXX XXXX was the last to be in possession of it and they were hired by Shellpoint. The original claim check did not have XXXX XXXX XXXX as an endorsee. What are they doing with my money? Ask them to produce any proof of a final check being issued to AND CASHED BY either me or XXXX XXXX XXXX. They cant because they have STOLEN {$7000.00} which is a felony. That they dragged their feet until XX/XX/XXXX ( or it might have been the XXXX - the auction date of the property ) and then everything was magically " closed '' and no one responded to any further emails ( not that they were very good prior to that ) is an obvious fraud. I have saved every email and have screenshots of every portal page so if you think you need something that I havent uploaded, please let me know. I will be uploading a printout of an XXXX spreadsheet index of all the documents Ive dealt with mostly emails asking for payment. 
It is so obviously a criminal enterprise otherwise, why wouldnt they just pay me? The contractor and I both satisfied all their requirements. What is going on here? Shellpoint is constantly changing their name and has locations in about three different states ; they never told me I was going to be dealing with a different company. And I am convinced that XXXX XXXX at XXXX XXXX XXXX ( I like to call him XXXX XXXX XXXX was paid extra for delaying us. No doubt he got a good portion of the funds that belong to me and XXXX XXXX XXXX. If I were you, I would also look into complaints about Shellpoint online there are many. 

I just want mine and my contractors money overnighted and paid for by anyone but me. Thats all. 

XXXX XXXX XXXXShellpoint Mortgage should also lose their license to operate in Tennessee.

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