Consumer complaint received 2026-03-10 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Paying off the loan
Company: Shellpoint Partners, LLC
State: FL

Complaint narrative:
Subject : Complaint Mortgage Servicer Refusal to Honor Valid Payoff Statement and Improper Assessment of Additional Charges I am submitting this complaint regarding a mortgage servicers refusal to honor a valid payoff statement, failure to properly process a timely payoff wire, and improper demand for additional funds after the loan had already been paid in accordance with the payoff statement. The servicer issued a mortgage payoff statement that was valid through XX/XX/year>, the scheduled closing date of the transaction. In reliance on that payoff statement, the closing company wired the full payoff funds to the servicer on XX/XX/year>. The closing company possesses both a Federal Reserve wire tracking number and wire confirmation demonstrating that the payoff funds were received by the servicer on XX/XX/year>, within the validity period of the payoff statement. Despite receiving the payoff funds on the date specified in the payoff statement, the servicer failed to process or apply the payoff when the funds were received. Instead, the servicer subsequently added additional fees to the loan balance during the following week after the loan had already been paid in accordance with the payoff statement. Approximately ten days after receiving the payoff funds, the servicers payoff department returned the payoff wire to the closing company rather than applying the funds to satisfy the mortgage. During this time, the closing attorney repeatedly requested to speak with the servicers legal department in an effort to resolve the issue. No response was provided. Instead, the servicer returned the payoff funds without explanation or meaningful opportunity to resolve the matter. As a result of the servicers refusal to apply the valid payoff funds, the closing company was forced to re-wire the payoff funds along with an additional {$400.00} in order to satisfy the servicers demand for additional money and complete the real estate transaction. This additional amount was paid under protest solely to prevent further delay or disruption of the closing. The servicers actions appear inconsistent with its obligations under the Real Estate Settlement Procedures Act ( RESPA ) and its implementing regulation, Regulation X ( 12 CFR 1024 ), which require mortgage servicers to maintain accurate servicing practices and respond appropriately to borrower and payoff requests. Issuing a payoff statement and then refusing to honor that statement after timely receipt of funds raises serious concerns regarding the servicers payoff handling practices and internal controls. By refusing to process the payoff funds that were timely received within the payoff statement validity period, returning those funds without resolving the dispute, and then demanding additional money to complete the payoff, the servicer effectively imposed improper and unnecessary charges on the transaction.

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