Consumer complaint received 2026-02-17 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
NewRez Financial has withheld the insurance claim distribution from XXXX XXXX intended for the repair of my home for over 9 ( nine ) months.

I suffered a small fire on XX/XX/year>, that resulted in significant damage to my home in excess of {$120000.00} for repairs. 

XXXX originally fought to distribute only {$41000.00} on XX/XX/year>. Knowing that distribution was insufficient, I invited NewRez 's Loss Prevention Claim Representative to attend a meeting between myself and XXXX and a third party contractor in order to put pressure on XXXX to provide additional funding as my coverage for the home repairs covered well-over {$500000.00} according to policy. 

I was able to secure additional funds from XXXX on XX/XX/year> for {$16000.00} and again on XX/XX/year>. 

NewRez released only {$40000.00} of these funds in XX/XX/year> after I already spent over {$95000.00} of my own money on the repairs and completed an property inspection from a representative they sent to my home the same month. 

They refused to release any of the remaining {$48000.00} until after I obtained signed Waivers of Liens for both the Electrician and Plumbers I hired for work to be done and completed an additional inspection. The Waivers of Liens were signed, uploaded and approved in their customer document portal in XX/XX/year> and early XX/XX/year>. I also conducted, scheduled and attended XXXX additional inspections by the XXXX XXXX XXXX XXXXXXXX for the construction work, Plumbing and Electrical inspections and passed all three of them by early XX/XX/year>. 

I also created a home construction project site where I included a working construction project plan, photo documentation of the progress of repairs on the home, made available all documentation for the costs of the repairs, a full ledger of all expenses, etc. and provided it to NewRez so that there would be no questions about where funds were being directed. You can review that site at XXXX. I also reference it in one of my emails to NewRez while attempting to get them to explain what their requirements are for funding distribution. 

NewRez distributed an additional {$25000.00} in early XX/XX/year>, but insisted on having an additional home inspection ( virtually by a contractor remotely viewing my home from XXXX through a Texas-based firm ). That contractor had no knowledge of my home prior to the fire, seemed to have no familiarity with construction and provided no information whatsoever about what they were looking for.

At this point, NewRez has refused to release the remaining {$22000.00} from my insurance
payments and have threatened to hold the money indefinitely, for over 258 days since they have received them. They have repeatedly lied regarding what documentation was required, failed to provide anything regarding the actual requirements for documentation, construction status or milestones and have changed their explanations for what is or is not required for funds to be released.

Furthermore, my home, in its current condition is worth well over the amount remaining on my outstanding mortgage as it is currently valued between {$72000.00} - {$800000.00} were I to sell it today. I have less than {$460000.00} left on my mortgage payment. So they have no valid excuse
to suggest they can withhold the remaining {$22000.00} as their investment is more than secure. They seem to operate out of malice and spite and I have reviewed hundreds of other complaints detailing the exact same behavior from other home owners who have NewRez and have suffered a loss from a fire or flood.

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