Consumer complaint received 2025-05-09 00:00:00
Product: Mortgage — FHA mortgage
Issue: Closing on a mortgage — Trying to communicate with the company to fix an issue with the loan closing
Company: Shellpoint Partners, LLC
State: ME

Complaint narrative:
Mischaracterization of Financial Instrument The party in question misrepresented the nature of the financial agreement by claiming it was a loan when, in reality, it constituted a lien against the property. This mischaracterization significantly impacted the decision-making process and created a false sense of flexibility regarding repayment terms and implications. 

Failure to Provide Complete Documentation Despite repeated requests, not all relevant documentation was disclosed or made available. This omission hindered the ability to fully understand and evaluate the terms of the agreement or take appropriate legal and financial steps. 

Altering Contractual Language The documentation that was eventually provided included modified or altered language. These changes materially affected the interpretation and obligations under the contract, leading to a significant disadvantage to the signer who believed the contract terms had remained consistent with prior representations. 

Exploitation of Vulnerable Individuals The institution took advantage of an individual who was XXXX and another who was recovering from a recent hospitalization. This was done by misrepresenting facts and failing to clearly explain the nature of the extension or how the program functioned. The lack of transparency and clarity constituted a serious breach of ethical and possibly legal responsibilities to vulnerable consumers. 

Deflection of Responsibility and Misinformation When clarification was sought, representatives stated there was nothing they could do, attributing all restrictions and limitations to a federal program. They further claimed that the Department of Housing and Urban Development ( HUD ) would be willing to work with the borrowers, which turned out to be false. HUD declined any negotiation, indicating that this claim was either misleading or deliberately false. 

Failure to Disclose HUDs Non-Negotiable Position The institution should have been fully aware that HUD would not enter negotiations or provide flexibility regarding the terms of the program. Their failure to disclose this critical information constituted a material omission and further misled the borrowers into believing there were options that did not exist. 

Credit Reporting Failures Despite the account being brought current, Shellpoint failed to remove negative remarks from the credit report. This continued to impact the borrower 's credit score and financial standing, even though they had met the required conditions to restore the account. 

On XX/XX/XXXX we reached out the company about the lien that was not a loan and the terms of the modification. 
The company proceeded to give me to a service officer who explained that the HUD was the only responsible party that could help it and that they " help people all the time '' however upon receiving terms from HUD on the XXXX it was very clear that documents were missing which waived our right to negotiation or discuss said terms.

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