Consumer complaint received 2025-11-13 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
CFPB COMPLAINT ( UPDATED WITH XXXX / BOARD LIABILITY ) Subject : Servicer Misrepresentations to South Carolina Attorney General ; Contradictory Account Information ; Failure to Correct Notices of Error ; Systemic Misapplication of VA Loan Payments ; Corporate-Governance Violations Under XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 



Summary of the Issue My servicer ( NewRez/Shellpoint , owned and controlled by XXXX XXXX XXXX ) has issued false and contradictory account information to multiple regulators. Most recently, they supplied the South Carolina Attorney General with a letter that contradicts : their own recorded phone calls, multiple ledgers, screenshots of payment reversals, prior CFPB responses, documents submitted to XXXX, and VA loan servicing rules. 

This conduct violates : RESPA / Reg X 1024.35 failure to correct servicing errors RESPA / Reg X 1024.38 failure to maintain reasonable servicing policies Dodd-Frank UDAAP ( 12 U.S.C. 5531, 5536 ) VA Servicer Handbook M26-4 38 C.F.R. 36.4300 et seq. 

Further, because NewRez and XXXX are Delaware corporations, this pattern constitutes a XXXX oversight failure under : XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

This is a textbook case of failure to implement or monitor a system of controls, resulting in systemic misrepresentations to regulators and the borrower. 



Detailed Description 1. Contradictory Letter to SC Attorney General On receipt of a new letter sent by the servicer to the South Carolina AG, I identified blatant inconsistencies compared to : ledgers showing {$12000.00} unapplied ( recorded call on XX/XX/XXXX ), a ledger showing {$750.00} added then removed, previous statements claiming XXXX was paid, screenshots showing payments applied removed re-applied, earlier written assurances of error but without correction. 

The AG letter was not just inaccurateit contradicted evidence the AG already received from me.

Issuing false information to a regulator violates 12 C.F.R. 1024.38.

2. Repeated Failure to Correct a Notice of Error ( RESPA 1024.35 ) I sent multiple Notices of Error, including XXXX on XX/XX/XXXX, documenting : unapplied payments, mismatched balances, reversals without justification, improper suspense activity. 

Under Reg X 1024.35 ( e ) the servicer must correct or reasonably investigate.

They did neither.

Instead, they issued contradictory letters such as the one sent to SCAG. 



XXXX. Pattern of Misrepresentation Across Regulators The servicer has now issued different balances to : me ( borrower ) CFPB XXXX SC Attorney General These discrepancies are material, recurring, and inconsistent with federal requirements. 

This pattern of contradictory reporting meets the criteria for : UDAAP deception, RESPA systemic policy failure, and Delaware fiduciary-duty failure under XXXX. 



4. VA Loan Servicing Violations This is a VA-guaranteed loan, which imposes additional federal obligations : Accuracy of account information ( XXXX ) Proper application of payments Immediate correction of servicing errors Protection from improper default reporting None of these obligations were met. 



XXXX. Corporate Governance Violations ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) NewRez and XXXX are Delaware corporations, governed by a duty to implement and monitor systems preventing illegal activity. Delaware law clearly states : Directors/officers must ensure information-reporting systems exist ( XXXX ). 
Lack of oversight that allows repeated legal violations is a breach ( XXXX XXXX XXXXXXXX ). 
When a company operates in a mission-critical regulatory environment ( like mortgage servicing ), oversight failures are actionable ( XXXX XXXX XXXX XXXXXXXX ) XXXX 
Patterns of consumer-harm misconduct indicate failure to implement or monitor controls ( XXXX XXXX XXXX ). 

NewRezs and XXXX leadership, directors, risk officers, and legal officers are responsible for this systemic breakdown. 



XXXX. Specific Leadership with Oversight Responsibility NewRez XXXX XXXX XXXX XXXX ( XXXX ) ultimate operational oversight XXXX XXXX ( Head of Servicing ) responsible for servicing accuracy XXXX XXXX ( XXXX ) administrative controls XXXX XXXX ( Chief XXXX & XXXX XXXX ) legal compliance and risk XXXX XXXX ( XXXX ) financial accuracy and ledgers XXXX XXXX ( XXXX ) system controls and data integrity NewRez XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX ( Parent Company ) XXXX XXXX ( CEO/Chairman ) ultimate fiduciary oversight XXXX XXXX XXXX XXXX ) responsible for accounting controls XXXX XXXX ( Chief XXXX XXXX ) XXXX XXXX XXXX ( XXXX XXXX XXXX ) Each of these individuals is accountable under XXXX for ensuring : accurate reporting systems, lawful servicing practices, protection of borrowers under RESPA and federal law XXXX 

Their failure to prevent or correct systemic inconsistencies violates Delaware fiduciary-duty precedents. 



XXXX. Harm Suffered Because of these failures I have suffered : inability to determine lawful amount due threats of foreclosure based on false balances emotional/psychological distress financial uncertainty the impossibility of maintaining payment compliance inaccurate reporting across multiple regulators Requested CFPB Actions I request that the CFPB : XXXX. Require a full, corrected loan history from Day XXXX ( all suspense, escrow, reversals ). 
XXXX. Investigate the false statements made to the SC Attorney General. 
XXXX. Enforce corrective action for violations of Reg X 1024.35 and 1024.38. 
XXXX. Review UDAAP violations for deceptive reporting. 
XXXX. Examine whether NewRez/XXXX XXXX XXXX XXXX oversight duties given the systemic nature of these contradictions. 
XXXX. Freeze foreclosure activity until a fully accurate accounting is produced. 
XXXX. Open supervisory review into whether this reflects a systemic VA-loan servicing pattern. 
ADDITIONAL PARAGRAPH ( PLACE AFTER Harm Suffered ) I can not lawfully determine when my payment is due or how much I am supposed to pay, because the servicer has issued multiple conflicting balances, contradictory ledgers, inconsistent explanations, and reversals that do not match their own recorded calls or prior statements. These discrepancies directly interfere with my ability to comply with my VA-guaranteed mortgage obligations. Under RESPA/Reg X and VA servicing rules, a servicer must maintain accurate, consistent, and reliable account information. I can not continue throwing money into a system where payments disappear, are reclassified, removed, reapplied, or contradicted across regulators. Until I receive a fully accurate, corrected, and reconciled ledger, it is legally impossible for me to make proper payments, and the servicer can not threaten foreclosure based on information they themselves can not keep consistent. It is their duty, not mine, to maintain accurate records and respond truthfully.

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