Consumer complaint received 2024-08-21 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: Shellpoint Partners, LLC
State: AZ

Complaint narrative:
Per my previous CFPB Complaint XXXX I provided two VA Circulars that should have ben utilized by Shellpoint to process my Covid 19 VA Forbearance and transition into payment once it ended. I have attached both, plus the company 's responses to date.

In the first response, the company admitted my forbearance should have continued as a VA Covid 19 forbearance through the end of the year : " However, per the Veterans Affair ( " VA '' ), COVID-19 forbearances were to be extended through XXXX XXXX, and your request should have been honored. '' This response indicates my loan then should have been processed through the XXXX described in VA XXXX XXXX. That was the basis of my most recent CFPB Complaint # XXXX. 

b. Starting Point XXXX : If the borrower indicates the borrower can resume normal monthly guaranteed loan payments but can not repay the COVID-19 arrearages, the servicer offers a VA Disaster Extend Modification7 or a loan deferment.

8 VAs prior approval is not required for these options.

Two Points : 1 ) Shellpoint stated I SHOULD HAVE been in a VA COVID 19 forbearance through the end of the year but did not address why I was not, how it would be rectified, and why I did not receive the options outlined above in the Circular relevant at the time.

2 ) In the second response, Shellpoint claims " The VA payment deferral option has not been available since XXXX XXXX ; therefore, a deferral would not have been an option to bring the loan current in XX/XX/XXXX, when you requested loss mitigation assistance. '' This directive was issued in XXXX of XXXX, Circular XXXX informing servicers of upcoming adjustments which would be good through XX/XX/XXXX : XXXX. Updating Certain Home XXXX XXXX. VA issued XXXX XXXX Refund Modification and Loan Deferment home retention options in VA Circulars XXXX and XXXX XXXX, respectively, to help Veterans affected directly or indirectly by the XXXX national emergency. Because the financial impacts of the XXXX national emergency continue to affect borrowers and the marketplace has continued to evolve at an unprecedented pace, VA has had to make multiple changes, in the form of Change Circulars, to ensure Veterans have the opportunity to retain their homes. VA is concerned that issuing additional Change Circulars could be confusing. Therefore, to help stakeholders better understand the servicing options that are applicable, VA will consolidate recent changes related to XXXX Refund Modification and Loan Deferment options and issue new circulars that will be effective through XX/XX/XXXX. 

The new updates came out XX/XX/XXXX Circular XXXX which extended deferments while my loss mitigation workout was still in process. In addition, here is the XXXX from XX/XX/XXXX XXXX outlining XXXX Options : b. Starting Point XXXX : If the borrower indicates the borrower can resume normal monthly guaranteed loan payments but can not repay the XXXX arrearages, the servicer offers XXXX VA Disaster Extend Modification9 or a loan deferment. 
XXXX VAs prior approval is not required for these options. 

Can Shellpoint please address the VA Circular removing the Deferment option on the date they stated XX/XX/XXXX? Can they also explain if it was not available, why I was not eligible for the XXXX option of the XXXX XXXX XXXX? 

It is evident, in my case if not many others Shellpoint is servicing : XXXX ) Shellpoint did not update their XXXX Mitigation process for VA XXXX XXXX XXXX Circular XXXX XXXX XXXX XXXX extending VA Covid 19 forbearance eligibility through XX/XX/XXXX denying me the opportunity to be evaluated through the proper Waterfall treatment outlined in XXXX from XXXX of XXXX and reiterated in XXXX on XX/XX/XXXX while my workout was still in an active status. 

My expectation and the proper outcome of this third complaint would be for me, and any other veteran serviced by Shellpoint that may have been negatively impacted by the above to be properly categorized as Covid 19 Forbearance status as I was not, and then run through the proper Covid 19 XXXX based upon their specific circumstance as outlined in the relevant circulars. The VA clearly and repeatedly outlined both the end date of forbearance eligibility and the proper waterfall for those impacted by Covid 19. I am not asking for any exception, but simply to be treated as I should have been per the directives VA provided. 

I will continue to make my payments as I have been under the terms of the incorrect modification given to me until this is resolved. As I have stated repeatedly, my goal is to keep my home.

Company response to consumer: Closed with explanation