Consumer complaint received 2026-02-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: AL

Complaint narrative:
I am filing a complaint against Newrez/Shellpoint for ongoing mortgage servicing errors involving misapplication of payments, diversion of borrower payments to escrow and/or fees rather than principal and interest, inconsistent loan accounting, loss of paid-ahead status, and the loan being shown as current and later delinquent despite timely payments. These issues have continued despite multiple Qualified Written Requests/Notice of Error letters and have resulted in delayed principal reduction, additional interest accruing on balances that should have been reduced earlier and an extended projected payoff timeline. 
Background and Timeline - XXXX : Filed XXXX XXXX bankruptcy. While our payment history prior to bankruptcy included some irregularity, the loan was brought current before filing and we have made consistent, timely payments directly outside the plan during and after the XXXX  XXXX period. 
- XX/XX/XXXX : Began bi-weekly payments to accelerate amortization. 
- XX/XX/XXXX : New Loan notation on loan history followed by no principal/interest credited for XX/XX/XXXX. 
- XXXX XXXX : Payment application became erratic and principal reductions did not reflect timely payments. 
- XX/XX/XXXX : Escrow account created without justification, escrow balance increased multiple times through XX/XX/XXXX. 
- XX/XX/XXXX : Loan was paid approximately 3-4 months ahead ( per servicer records ). 
- XX/XX/XXXX : Newrez response sent to bankruptcy counsel; concluded no error while acknowledging internal bankruptcy department processing and delays. 
- XX/XX/XXXX and XX/XX/XXXX : Escrow activity occurred again ; escrow set to {$650.00} and remained until XX/XX/XXXX. 
- XX/XX/XXXX : Newrez response stated borrower payments were first applied to outstanding fees before principal reduction, without itemizing or reconciling those fees. 
- XX/XX/XXXX : Escrow statement reflects a surplus refund of {$650.00} and escrow balance reduced to {$0.00}. 
- XX/XX/XXXX XX/XX/XXXX : Due to consistent bi-weekly payments, the loan periodically reflected paid-ahead status beginning in late XXXX. However, beginning in XXXX this paid-ahead status was gradually eliminated without missed payment, and by XX/XX/XXXX the loan was reflected as delinquent despite, again, timely payments. 
Primary servicing problems : 1. Misapplication/diversion of payments : Payments were not consistently applied to principal and interest as expected. Newrez stated in a XX/XX/XXXX response that a significant portion of borrower payments was first applied to outstanding fees before any principal reduction, but the fees were not itemized, justified or reconciled. 
2. Improper escrow activity : Escrow accounts were added and funded from borrower payments without justification, then reversed or refunded without reconciliation. In XX/XX/XXXX escrow was created ( approximately {$1100.00} ) and increased through XX/XX/XXXX, followed by an internal refund of approximately {$1700.00} without clear explanation of how payments were re-applied to principal and interest. In XXXX escrow activity occurred again, including an escrow balance of {$650.00} that remained until XX/XX/XXXX when a check was issued and described as a surplus refund, without acknowledgement of error or accounting correction. 
3. Loss of paid-ahead status/erroneous delinquency : Due to bi-weekly payments the loan was paid approximately 3-4 months ahead by XX/XX/XXXX. Despite continued timely payments the loan was later shown as only current and then reflected as delinquent in XX/XX/XXXX. This regression occurred without missed payments and appears tied to escrow/fees and/or delayed crediting. 
4. Inconsistent loan accounting and inadequate QWR/NOE responses : I sent multiple QWR/NOE letters requesting complete life-of-loan accounting and reconciliation , including explanations for transaction descriptions . Responses denied error without a meaningful reconciliation and at least one response was routed only to bankruptcy counsel rather than directly to me. Two amortization schedules provided by Newrez are inconsistent and show different projected final payment dates ( XXXX/XXXX/XXXX vs XXXX/XXXX/XXXX ) despite no loan term change. 
5. Monthly mortgage statements have also reflected significant unexplained variations in payment amounts, account information and transaction activity sections over time, further preventing borrower from verifying accurate application of payments. 
Examples : - Between XX/XX/XXXX and XX/XX/XXXX the principal balance remained unchanged at approximately {$75000.00} with no clear principal/interest crediting reflected during that period despite ongoing payments ( see loan history excerpt ). 
- Between XX/XX/XXXX and XX/XX/XXXX the principal balance again remained unchanged at approximately {$75000.00} despite timely bi-weekly payments. 
- The XX/XX/XXXX payment made on XX/XX/XXXX was not applied until XX/XX/XXXX, causing additional interest to accrue on a balance that should have been reduced earlier. 
- Amortization schedules provided XX/XX/XXXX vs XX/XX/XXXX show different projected final payment dates ( XXXX/XXXX/XXXX vs XXXX/XXXX/XXXX ) despite no loan term change. 
Harm : - Mortgage payments were diverted away from principal reduction and interest to escrow and/or unexplained fees. 
- Principal reduction was delayed or reversed. 
- Additional interest accrued because principal was not reduced when it should have been. 
- Paid-ahead status was eliminated and the account later reflected delinquency despite timely payments. 
- Significant time spent attempting to reconcile inconsistent records and resolve errors.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation