Consumer complaint received 2025-11-18 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
THE XXXX XXXX ( WEAPONIZED VERSION ) A Philosophical Indictment With Legal Citations You told regulators : NewRez has nothing to do with XXXX. 
You repeated it to the CFPB. 
You sent it to state agencies. 
You embedded it in responses designed to reroute complaints. 

Yet your own XXXX speaks differently. 
On camera. 
With no confusion. 
No hesitation. 

He says : Businesses in XXXX ( XXXX ) Our MSR perspective ( XXXX ) Our operating center in XXXX ( XXXX ) Our complaint trackers ( XXXX ) Our digital tools ( XXXX ) Our capital keeping that capital ( XXXX ) Two truths can not coexist when they are opposites. 
A company can not be both integrated and unrelated. 
A platform can not be unified and independent. 
A XXXX can not speak in the voice of an organization he supposedly is not part of. 

This is the paradox that exposes the lie. 



I. The Paradox as Legal Evidence of Deception Under federal law, a contradiction of this magnitude triggers multiple statutory violations. 

UDAAP Deception 12 U.S.C. 5531 ( a ) prohibits practices that mislead consumers or regulators. 
A representation is deceptive when it is material and contradictory to reality. 

You manufactured a parallel universe : The regulator universe where NewRez XXXX The public universe where NewRez = XXXX  platform voice Your CEOs statements constitute admissions against interest. 
Your filings constitute misrepresentations. 

UDAAP Unfairness 12 U.S.C. 5531 ( c ) : conduct causing substantial injury that can not be avoided by consumers. 
Consumers can not avoid an injury if the servicer hides who controls the platform. 

Misrouting Jurisdiction 12 U.S.C. 5536 ( a ) ( 1 ) ( B ) forbids entities from intentionally giving false information to alter, avoid, or obstruct regulatory process. 

This paradox shows deliberate obstruction : You used corporate fragmentation as a shield. 

FTC Act 5 Deception Standard Your statements must be truthful at the time they are made.

They were not.

RESPA ( Reg X ) 12 C.F.R. 1024.38 Requires servicers to have accurate information management systems. 
You can not stabilize a system whose parent company you deny exists. 

RESPA ( Reg X ) 12 C.F.R. 1024.35 Requires servicers to respond to Notices of Error truthfully. 
You responded with a fabricated corporate structure. 

Caremark Duties & Oversight Failures In re XXXX, XXXX XXXX XXXX ( XXXX. Ch. XXXX ) Your board had a duty to ensure accurate regulatory reporting. 
This paradox shows the opposite : The board allowed ( or created ) a two-reality system. 

XXXX XXXX XXXX XXXX XXXX Co XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX. Ch. ) Directors face liability when they mask systemic failures with false public messaging. 
Your CEOs statements are the mask. 
Your regulator responses are the failure. 



II. Why the Paradox Is Devastating 1. A Servicing Platform Can not Be Two Things at Once Either : NewRez is part of XXXX structure ( CEO says YES ), or NewRez is not part of XXXX ( regulator filings say NO ). 

Both can not be true. 

Contradiction = deception. 
Deception = violation. 
Violation = liability. 

2. The Paradox Is Self-Proving Unlike most consumer disputes you dont need discovery, subpoenas, emails, org charts, or internal memos. 

The evidence is in the contradiction itself. 

A lie is proven the moment the liar contradicts himself. 

Silversteins interview contradicts the formal responses. 
Therefore the responses are false. 

3. It Exposes Systemic Bad Faith False corporate-relationship claims are not clerical issues. 
They are : deliberate strategic designed to misdirect legal responsibility intended to reduce enforcement exposure calculated to isolate liability in a subsidiary shell Every regulator recognizes this pattern. 
It is the classic corporate veil game that courts pierce immediately. 



III. The Paradox Weaponized If NewRez and XXXX are not connected, why does the President of NewRez speak as XXXX? 

If NewRez and XXXX are separate, why does he refer to Rithms : capital XXXX  strategy operating centers complaint systems tech stack AI tools disaster displacement impacts corporate branches XXXX integrations consumer experience models as ours? 

No executive speaks in the first-person plural for an unrelated company. 
No president discusses MSRs unless they are part of the XXXX entity. 
No one uses integrated language for a disconnected structure. 

The paradox is the confession. 
The contradiction is the evidence. 
The denial is the crime. 



IV. What This Means for Enforcement This paradox shows : Corporate misrepresentation Regulatory obstruction False filings Bad-faith CFPB responses Violation of federal consumer law Breach of XXXX oversight duties Platform-wide deception Misleading of borrowers, regulators, and possibly investors This is not a servicing error. 
It is structural dishonesty. 

This paradox reveals a deeper truth : To hide the corruption in the platform, NewRez had to deny the very structure of the platform. 

Once a company denies its own parent, every ledger entry, every misapplied payment, every negative escrow, every missing $ XXXX, every foreclosure notice, every automated error is now evidence of a systemic concealment regime. 

And paradoxically : The more they deny, the more they confess. 

CFPB ENFORCEMENT COMPLAINT SECTION The XXXXNewRez XXXX : Corporate Misrepresentation as a Structural UDAAP Violation I submit this complaint to document a deliberate pattern of deception, corporate misrepresentation, and regulatory obstruction committed by NewRez LLC, Shellpoint Mortgage Servicing, and their parent XXXX XXXX XXXX XXXX 

For nearly three years, these entities have repeatedly told the CFPB and state regulators : NewRez has nothing to do with XXXX. 
These complaints were sent to the wrong company. 
We are separate entities. 

However, the companys own President, XXXX XXXX, has publicly contradicted these statements in a nationally distributed HousingWire interview, repeatedly describing NewRez as an operational arm of XXXX XXXX. 

Direct statements from the NewRez XXXX : Businesses in XXXX ( XXXX ) Our XXXX  perspective ( XXXX ) Our operating center in XXXX ( XXXX ) Our complaint trackers ( XXXX ) Our digital tools self-service tools ( XXXX ) Our capital keeping that capital ( XXXX ) These are not slips of the tongue. 
They are operational admissions. 



I. The Paradox That Self-Convicts the Company NewRez can not be : disconnected from XXXX when speaking to regulators, and fully integrated with XXXX  when speaking to industry, investors, and the public. 

A company can not be two incompatible realities. 
A parent company can not be XXXX XXXX : Dead in the regulators inbox. 
Alive in the XXXX mouth. 

This is a philosophical contradictionbut a legal confession. 



II. Legal Violations Triggered This paradox triggers multiple statutory violations : 1. UDAAP Deception ( 12 U.S.C. 5531 ( a ) ) A representation is deceptive when it is : material contradictory to fact likely to mislead consumers or the CFPB NewRezs corporate-structure denials meet every prong. 

2. UDAAP False Statements to a Regulator ( 12 U.S.C. 5536 ( a ) ( 1 ) ( B ) ) It is illegal to knowingly provide a regulator with false information. 

NewRezs claims of no connection to XXXX violate this law. 

3. UDAAP Unfairness ( 12 U.S.C. 5531 ( c ) ) The deception produced unavoidable injury : corrupted ledgers false delinquency data destroyed credit incorrect foreclosure activity lost payments inconsistent portals negative escrow balances denial of proper error resolution Consumers can not avoid damage when the servicer hides who controls the platform. 

4. RESPA ( Reg X ) 12 C.F.R. 1024.35 & 1024.38 RESPA requires servicers to : maintain accurate information systems respond truthfully to Notices of Error A servicer can not comply with RESPA while denying the existence of its parent platform. 

5. FTC Act 5 Deceptive Corporate Representation False statements about corporate structure are material misrepresentations. 

XXXX. XXXX XXXX XXXX Oversight Failures Delaware corporate law requires boards to : monitor compliance ensure accurate reporting prevent deceptive public messaging The paradox reveals a systemic failure of oversight at both NewRez and XXXX XXXX. 



III. Why the Platform Failure Is Catastrophic This deception enabled a servicing meltdown : payments disappearing amounts applied, then removed escrow balances flipping unapplied funds oscillating delinquency statuses jumping foreclosure notices addressed to other borrowers two portals showing conflicting payment amounts two entities claiming they are not responsible internal data contradicting call center data The platform is corrupted past the point of recovery. 

The underlying data is non-reconstructable, and therefore non-compliant with federal law. 



IV. Damages Requested Given the systemic, ongoing, and unrecoverable harm : 1. Individual Damages Requested {>= $1,000,000} This covers : corrupted servicing data misapplied payments unlawful delinquency reporting credit damage forced foreclosure activity emotional and psychological harm as a 100 % Permanently & Totally XXXX Veteran multiplier damages ( XXXX enhancements recognized in federal practice ) the inability of the servicer to repair the corrupted ledger the permanent financial damage done over XX/XX/XXXX XX/XX/XXXX This amount reflects both compensatory and punitive damages for systemic misconduct. 

Additionally : Immediate VA loan payoff Immediate correction of all national credit reporting Formal findings of wrongdoing 2. National Restitution Requested {>= $1,000,000} ( XXXX XXXX Dollars ) This restitution is necessary because : The servicing platform is corrupted. 
Foreclosures were executed on faulty, unreconstructable data. 
Thousands of borrowers were harmed. 
XXXX, FHA borrowers, and conventional borrowers faced systemic errors. 
Negative escrows, false delinquencies, and vanished payments were not isolated cases. 
The misrepresentations about corporate structure allowed the system to evade accountability. 

This restitution is intended to : Pay off all mortgages that were wrongfully foreclosed on under this platform Restore all borrowers harmed by corrupted data Pay off or remediate all mortgages currently serviced on corrupted systems Protect veterans and XXXX borrowers from further harm The data is too damaged to repair. 
The only cure is total remediation. 



V. Requested CFPB Action I request : A full CFPB enforcement action Referral to the DOJ for false statements and servicing misconduct Referral to the FTC for deceptive corporate representation Referral to State Attorneys General for UDAP violations Mandatory national remediation orders Mandatory platform rebuild requirements A determination that NewRez/ShellpointXXXX engaged in systemic UDAAP violations The paradox is not just a philosophical riddle. 
It is proof of intent. 

NewRez and XXXX can not be two incompatible realities at once. 
And because they tried to be, borrowers especially XXXX veterans like myself were harmed at a national scale. 

I request immediate, urgent CFPB intervention. 



L 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