Consumer complaint received 2025-12-08 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Shellpoint Mortgage ServicingXXXX XXXX XXXX XXXX XXXX XXXX XXXX Re: RESPA Demand to Honor HOA Master Policy, Cease Semi-Annual Flood Insurance Billing, Reverse Invalid Late\n Fee/Status, and Refund Overpayments (Loan XXXX)\n As a senior citizen protected under federal and XXXX  elder abuse laws, I demand immediate cessation of your predatory\n flood insurance billing practices, which constitute financial exploitation through repeated unwarranted demands, ignored\n proofs, and illicit profits from commissions or held escrow interest. This violates the Elder Abuse Prevention and Prosecution\n Act (34 U.S.C. 21701 et seq.), which penalizes scams targeting seniors; the Elder Justice Act (42 U.S.C. 1397j et seq.),\n coordinating responses to abusive mortgage servicing; and the FinCEN Advisory on Elder Financial Exploitation (XXXX),\n requiring reporting of abusive billing red flags like your pattern of "non-receipt" claims. In California, this breaches the Elder\n Abuse and Dependent Adult Civil Protection Act (EADACPA, Welfare & Institutions Code 15600 et seq.), allowing treble\n damages for wrongful withholding of property (e.g., overcharged escrow); the Rosenthal Fair Debt Collection Practices Act (Civil\n Code 1788 et seq.), prohibiting abusive collections; SB 1018 (Financial Code 51000 et seq.), mandating elder abuse reporting;\n and Civil Code 2923.5, requiring contact with seniors before default threats.\n Your assessment of a $XXXX late fee on XXXX (per your XXXX mortgage statement and attached payment history\n export dated XXXX) and "late" status in the portal is fraudulent and retaliatory, as my P&I payment of $XXXX  was\n timely on XXXX (applied as unapplied partial per statement), and the pre-disbursement escrow balance fully covered the\n $XXXX  tax disbursement on XXXX (leaving ~$XXXX  cushion, as post-disbursement balance fell to $XXXX  per statement).\n This violates RESPA 1024.35(i) (no adverse credit reporting during 60-day NOE review), FCRA 1681s-2(a)(3) (no adverse\n reporting on disputed accounts), and the above elder protections against exploitationmy XXXX certified QWR (Exhibit\n XXXX XXXX XXXXXXXX) and CFPB complaints (IDs XXXX) protect against this.\n Furthermore, this late fee is unenforceable and uncollectible because it stems directly from your mismanagement of my\n adequately funded escrow account. With a pre-insurance disbursement balance of $XXXX  (sufficient for all legitimate items,\n including the $XXXX  tax payout), your improper force-placement created an artificial shortage and delinquency. Under\n RESPA 1024.17(k)(2), servicers must advance funds from escrow to pay insurance timely and avoid penalties, yet you failed to\n honor my valid HOA master policy, leading to unwarranted charges. The CFPB has repeatedly cited servicers for imposing\n improper late fees due to such escrow errors, violating consumer protections.\n Further, your ongoing flood insurance demands ignore my XXXX XXXX re-upload on XXXX (confirmation attached as\n Exhibit J, effective XXXX XXXX coverage via XXXX XXXX XXXXndemnity), confirming the\n HOA\'s continuous master policy under XXXX XXXX (HOA responsible for common area/structure\n insurance) and NFIP 44 C.F.R. 61.13 (RCBAP-equivalent certificates suffice for condo units; lenders must accept if meeting XXXX%\n replacement cost per XXXX XXXX XXXX). Your lender-placed flood disbursements (e.g., $XXXX XXXX XXXX XXXX XXXX XXXX  per statement and payment history, contributing to $XXXX  actual insurance in escrow analysis) are\n unwarranted, as the HOA master policy provides equivalent coverage without need for individual policies. The\n escrowAccounts.pdf screenshot shows two hazard policies (XXXX XXXX XXXX XXXX XXXX XXXX), confirming XXXX  is\n hazard, not floodfurther violating XXXX, which limits my hazard responsibility to interiors. Cease all semi-annual\n flood billing immediatelyyour negligence or intent to profit violates RESPA 1024.37, FDCPA 1692e (false representations),\n and elder abuse laws cited above.\n Additionally, your expressinsuranceinfo.com portal for proof of insurance uploads complicates, hides, and provides no\n feedback on review activity or results, creating a "black hole" that allows continued XXXX charges and late fees without consumer\n knowledge or recourse. Uploads (e.g., my XXXX XXXX XXXX  submissions) yield only generic confirmations, with no\n status updates, rejection reasons, or integration to your account dashboardviolating RESPA 1024.37(e) timely notice\n requirements and CFPB UDAAP rules against deceptive interfaces. This deceptive procedure enforces illicit escrow confiscation\n (e.g., $XXXX  overpayments) while assessing fees like $XXXX, exploiting unknowing consumers, especially seniors. For\n example, if a consumer uploads a master policy with the wrong expiration date, you continue billing and threatening lates\n without explaining why, leaving the consumer unaware despite believing proof was provided. Similarly, if the consumer\n uploads but misses scrolling to and clicking "submit" (button buried at the bottom), the policy remains unprocessedyou\n don\'t notify of the incomplete status, enabling XXXX  to proceed unchecked. As of XXXX XXXX XXXX  you have failed to update\n my account within the 72 business hours promised in the XXXX email confirmation for my XXXX upload ("A customer service representative will review your policy information and update your account within 72 business\n hours"). This written promise, when not honored, constitutes a deceptive act under CFPB\'s UDAAP authority (12 U.S.C. 5531,\n prohibiting unfair, deceptive, or abusive acts/practices) and may violate FTC Act 5 equivalents, as it misleads consumers about\n timelines for error resolution and insurance verification, leading to unwarranted charges.\n Your XXXX  mortgage statement deceptively demands $XXXX  due on XXXX an excessive amount that includes\n invalid items like the $XXXX  late fee, $XXXX  force-placed insurance, and portions for last month\'s disputed escrow. The\n "Explanation of Amount Due" misleadingly lumps $XXXX as "Escrow (Taxes and Insurance)" without itemizing the ~$XXXX\n property tax component (derived from the annual ~$XXXX  taxes divided by 12, but requiring consumers to cross-reference\n disbursements and projections across pages), forcing consumersespecially seniorsto perform complex calculations to\n discern legitimate charges. Even more deceptively, the $XXXX  monthly "Escrow (Taxes and Insurance)" is padded beyond the\n true property tax needs (~$XXXX XXXX XXXX annual taxes), allowing occasional invalid XXXX  charges like $XXXX  to be\n absorbed without dropping the balance below minimum levels or triggering immediate alerts. This hidden accounting layer\n evident in the payment history where FPI deductions don\'t cause visible shortagesobscures improper disbursements, making\n them inaccessible to consumers, elders like me, or auditors (e.g., CFPB officials) without deep analysis. It violates RESPA\n 1024.17(c) escrow limits (1/12th + 1/6 cushion max) and CFPB UDAAP prohibitions on deceptive practices that mislead about\n costs and account status, while enabling illicit XXXX  profits. The CFPB has cited servicers for similar inaccurate or misleading\n statement descriptions that harm consumers. My updated pivot analysis of your payment history (downloaded XXXX attached as XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX  overpaymentproving errors despite your "no error" claims in prior CFPB responses. CFPB must\n compel refunds, as their supervisory highlights support audits for such discrepancies.\n I will continue paying property tax contributions into escrow ($XXXX XXXX XXXX XXXX XXXX XXXX taxes) but\n withhold disputed flood insurance portions. Demand within 15 days:\n 1. Refund $XXXX late fee and reverse "late" status/no reporting.\n 2. Refund $XXXX  flood overpayments ($XXXX  historical net per pivot Exhibit D/E + $XXXX on XXXX XXXX XXXX XXXX XXXX).\n 3. Cease all flood insurance billing/demands; honor HOA master policy for ongoing coverage without six-month cycles.\n 4. Confirm escrow for property taxes only; provide updated analysis for $XXXX  cushion.\n 5. Suppress adverse actions and report suspected elder abuse per SB 1018.\n 6. Provide a corrected statement for XXXX reflecting only XXXX XXXX XXXX XXXX XXXX XXXX (excluding invalid\n items), and itemize all escrow components (taxes separate from insurance) in future statements to avoid deceptive\n practices.\n 7. Improve expressinsuranceinfo.com with status tracking, feedback, and integration to prevent future errors.\n Non-compliance escalates to CFPB/XXXX  with this evidence, seeking treble damages under EADACPA. All in writing.\n Sincerely,XXXX XXXX XXXX XXXX Attachments:\n Payment History Export XXXX  highlighting late fee/tax disbursement)\n Filtered Payment History (focusing on late charge and property tax entries)\n Exhibit J XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  (QWR, statements, pivot)\n Shellpoint Escrow Statement (effective XXXX and Mortgage Statement XXXXXXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 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