Consumer complaint received 2025-11-05 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
FORMAL ENFORCEMENT COMPLAINT CFPB & TENNESSEE DFI Complainant : XXXX XXXX ( XXXX XXXX XXXX XXXX veteran ) Co-Borrower : XXXX XXXX Respondents : NewRez LLC XXXXb/a Shellpoint Mortgage Servicing and XXXX XXXX XXXX XXXX 
Loan No. : XXXX : XXXX XXXX XXXX, XXXX, TN XXXX Date : XX/XX/year> I. SUMMARY This complaint documents Shellpoints continuing and willful violations of the Real Estate Settlement Procedures Act ( RESPA ) and Truth in Lending Act ( TILA ). 
Despite multiple properly formatted Notices of Error under 12 C.F.R. 1024.35, the servicer replied only with generic form letters ( see Exhibit F dated XX/XX/year> ). 
Such responses do not satisfy RESPAs requirements and instead demonstrate deliberate avoidance of statutory investigation and correction duties. 



II. FACTUAL CHAIN 1. XX/XX/year> Payment Misapplied A {$5000.00} payment was made and accepted but recorded as two partials ( {$3900.00} + {$1000.00} ). 
Ledger screenshots show no proper crediting and shifting escrow deficits. 
2. XX/XX/year> Recorded Admission Shellpoint agent confirmed {$12000.00} held in unapplied funds, with {$4000.00} refund within 7 days. 
No refund ever received ; instead, borrower received a Notice to Cure. 
3. XX/XX/year> Final Demand for Correction Sent to Shellpoint Compliance, XXXX  to CFPB, DOJ, FTC, SEC, VA OIG, and Congressional offices. 
Demand included restitution, ledger audit, and {$500000.00} damages + {$100.00} XXXX15-day accrual clause. 
XXXX. XX/XX/year> Generic Response ( Exhibit F ) Shellpoint mailed a form acknowledgment : We are working to gather the requested information. 
It did not address any alleged errors, provide findings, or satisfy RESPA 1024.35 ( e ). 
This constitutes a procedural default and a continuing violation. 
XXXX. XX/XX/year> Formal Notice of Error Re-Issued Reiterated violations and included supporting screenshots and recordings. 
XXXX. XX/XX/year> XXXX XXXX Tennessee DFI confirmed it opened a formal review based on CFPB complaints and attachments. 
XXXX. XX/XX/year> Failure-to-Respond Notice Filed Complainant notified Shellpoint that generic acknowledgments do not satisfy 1024.35 ( e ) ( 3 ) and that damages would continue to accrue. 



III. APPLICABLE LAW 12 C.F.R. 1024.35 ( b ) ( 1 ) ( ii ) : Failure to credit payments as of date received. 
12 C.F.R. 1024.35 ( e ) ( 3 ) : Failure to investigate and respond with written findings within 30 days.

12 U.S.C. 2605 ( k ) ( 1 ) ( C ) : Duty to maintain accurate account information.

12 C.F.R. 1026.36 ( c ) ( 1 ) : TILA obligation to apply payments upon receipt.

38 C.F.R. 36.4350 ( c ) : VA servicer duty to apply payments promptly for veteran borrowers.

15 U.S.C. 1692e ( 2 ) ( A ) : False representation of amount or status of debt.

12 U.S.C. 5531 : Prohibition on unfair or deceptive acts or practices ( UDAAP ). 



IV. EVIDENCE OF BAD FAITH Exhibit F Shellpoint Letter ( XX/XX/year> ) A form letter addressed to Dear Homeowner ( s ), containing no error discussion or correction. 
This document is proof of systemic failure to comply with federal mortgage-servicing standards and will be submitted with audio recordings and portal screenshots as corroboration. 



V. DAMAGES AND REMEDY DEMAND 1. Base Damages : {>= $1,000,000} for financial injury, credit reporting harm, and emotional distress. 
2. Unapplied Funds : {$100000.00} retained without application or interest. 
3. Continuing Damages : {$100000.00} per 15-day interval of non-compliance after XX/XX/year>. 
4. Mandatory Relief : Full ledger audit and application of all funds as of original receipt dates. 
Suspension of any collection or foreclosure activity pending correction. 
Removal of negative credit entries resulting from these violations. 



VI. REQUESTED REGULATORY ACTION The Complainant requests that the CFPB and Tennessee DFI : 1. Issue a civil investigative demand to NewRez LLC and XXXX XXXX XXXX XXXX 
2. Order immediate borrower restitution and account reconciliation.

3. Initiate multi-agency referral to DOJ Civil Fraud and VA OIG for systemic servicing abuse.

4. Require public disclosure of findings under CFPB Supervision and Examinations policy. 



VII. CONCLUSION Shellpoints XX/XX/year> form letter demonstrates reckless disregard for federal law and borrower rights. 
This pattern is consistent with prior CFPB enforcement actions against NewRez for servicing failures and requires urgent regulatory sanction and consumer relief. 

Respectfully submitted, XXXX XXXX XXXX XXXX XXXX XXXX, TN XXXX Date : XX/XX/year> 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