Consumer complaint received 2025-09-11 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
This complaint is in response to XXXX  submitted on XX/XX/year>, which you closed before I could respond to the companys response. Here is my response to the company : Your most recent letter ( in quotes ) to the Department of Financial Institutions, my replies beneath each of the quoted portions : An inspection was ordered on XX/XX/year>, but was not scheduled or completed until XX/XX/year>. A final draw request was submitted on XX/XX/year> ; however, it could not be processed due to the contractors incorrect completion of the XXXX XXXX XXXX XXXX XXXX ). There is no record indicating that XXXX informed XXXX XXXX of this delay. 

That is half correct. We went back and forth two or three times on that waiver, but a corrected copy was accepted on the insurance portal on XX/XX/XXXX ( screenshot of insurance portal available ) and NEVER once were we told by ANYONE that the AMOUNT on the XXXX for XXXX XXXX XXXX was incorrect. Also, I was not told that a final draw request had been made. XX/XX/XXXX was the date the one and only inspection was uploaded to the portal. 

FYI, the mistake with the amount on the XXXX doesnt change the total amount of money going out and I can ASSURE you, that if I had received the check and confirmed with the contractor his portion, he would have been overnighted his correct payment.

OK, lets do the math and revise the numbers I originally gave you : Contractors Estimate : {$6600.00} XXXX XXXX ( first payment ) = {$4200.00} still owed to contractor. 
{$9300.00} ( original claim check ) XXXX ( 1st Payment ) = {$7000.00} = amount remaining in restricted escrow account this is the same total remaining amount weve been talking about since the beginning. 
{$7000.00} - {$4200.00} still owed to contractor = {$2700.00} balance to me. 
{$4200.00} + {$2300.00} XXXX XXXX XXXX {$9300.00} ( original claim check amount ) Shellpoint acknowledges XXXX XXXX statement regarding the conditional nature of the flooring XXXX. However, the issue stemmed from the contractor entering the previously paid amount rather than the outstanding balance. 

Why am I just hearing about this now for the first time ( XXXX XXXX XXXX XXXX Why didnt anybody say that the AMOUNT was wrong on that form? Why didnt XXXX XXXX tell me that the amount was wrong? THE FLOORING CONTRACTORS XXXX WAS UPLOADED AND ACCEPTED ON THE INSURANCE PORTAL ON XX/XX/XXXX. WHY WAS IT ACCEPTED ON THE INSURANCE PORTAL IF IT WAS INCORRECT? 

Additionally, although XXXX XXXX  were completed prior to Shellpoint receiving the insurance proceeds, the required documentation was still pending. 

NOT IT WAS NOT, as I have demonstrated in the emails ( email chain available ). They received the estimate on XX/XX/XXXX, the XXXX docusigned on XX/XX/XXXX and received by XX/XX/XXXX at XXXXXXXX XXXX at the latest, and per XXXX XXXX, a XXXX was not required, as this contractor HAD been paid. 

A foreclosure sale for the property was held on XX/XX/year>. The property did not sell at auction and subsequently reverted to lender ownership as XXXX XXXX XXXX ( XXXX ). As of the foreclosure sale date, the remaining loss draft balance was {$7000.00}. At that time, the Claims Department was awaiting the contractors XXXX proposal, the XXXX, and a completed XXXX form. 

AGAIN, THIS IS FALSE. See previous reply. 

On XX/XX/year>, the Claims Department contacted the contractor and resubmitted the draw request. That same day, they requested the contractors proposal and XXXX  related to the XXXX  XXXX  noted in the Adjusters report. There is no record of this communication being shared with the borrower. 

CORRECT. I did not receive the communication regarding re-submitting the draw request. As far as I knew, it had never been submitted at all. It does seem like the borrower should be kept in the loop. Why were we rushing around trying to get the XXXX  info when the XXXX XXXX was in danger of not being paid at all? And did you know at this time that the XXXX had the incorrect amount on it? Did you ask the XXXX to re-submit the form WITH THE CORRECT AMOUNT the actual true balance and not the initial payment made? Or did you just ask him to re-submit, as if you hadnt received it, expecting him to just figure out the problem? Let this be a reminder that the clients you work with are NOT LICENSED IN INSURANCE. If it was going to result in this insurance payment being stolen by Shellpoint, I think I should have been informed and included on the email chain. 

Based on available information, it appears XXXX XXXX was attempting to obtain the necessary documentation from a different contractor. 

What are you even talking about? I WAS ATTEMPTING TO OBTAIN PAPERWORK FROM THE XXXX XXXXXXXX BECAUSE THATS WHAT XXXX XXXX TOLD US HE NEEDED. WHY WERE WE EVEN TALKING ABOUT THE XXXX XXXXXXXX, WHO HAD BEEN PAID, RATHER THAN THE FLOORING XXXX, WHO HAD NOT BEEN PAID, AND WHOSE FORM WAS APPARENTLY NOT CORRECT? Why was an incorrect form accepted in the insurance portal on XX/XX/XXXX? As per my previous letter to you, on Thu, XX/XX/year>, XXXXXXXX XXXX XXXXXXXX XXXX wrote : Hello, I have everything cleared for the final payment for the flooring work. There is an entry on the adjusters estimate foXXXX XXXX work and this is also mention in the email chain that this is complete. We need to know who did the work, get the proposal for this work, the waiver of lien for them, know if they have been paid, and if not we will need their XXXX. Thank you ( actual email available ). 

He said nothing whatsoever in that email about correcting the amount on XXXX XXXX XXXX XXXX but he DID say that everything was cleared for payment to the flooring XXXX. Hmmmm. It looks like you need to pay me and XXXX XXXX XXXX what is owed, and then get your money back from XXXX XXXX XXXX or the investor or the bank or the lender or whoever the heck has it. 

However, the property transitioned to XXXX status on XX/XX/year>, and was no longer managed by the Claims Department. Once a loan becomes XXXX, any remaining loss draft funds are typically held and remitted to the investor to offset losses incurred from the foreclosure. 

This is not what you said in your previous letter. In that letter, you said that the money goes to the bank holding the XXXX, not a private investor and not that it could be spent on foreclosure costs. Also, you are admitting here that the property did not transition to XXXX status until XX/XX/year>, fully four days after the XX/XX/XXXX, XXXX a.m. email to XXXX XXXX containing the XXXX docusigned on XX/XX/XXXX from the XXXX company. 

Newrez/Shellpoint never had any intention of disbursing this money, otherwise they would have called our attention to the fact that the XXXX XXXX XXXXXXXX had the wrong amount on it on XX/XX/XXXX XXXX weeks before the auction sale and with PLENTY OF TIME to make the appropriate correction. That would also have been a good time for XXXX XXXX to review the file and ask for the missing XXXX  paperwork. 

Does anyone at your company READ anything? Do they READ emails? Do they CHECK things before the due date? This is like dealing with an XXXX old. 

I most certainly will be investigating the possibility of a lawsuit. 

All I want is {$4200.00} for XXXX XXXX XXXX and the {$2700.00} balance to me still the same {$7000.00} weve been talking about since XX/XX/XXXX, when the floor was finished. The lawyers can have whatever they can get above that and I hope they take you to the cleaners. 

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