Consumer complaint received 2025-11-11 00:00:00
Product: Debt collection — Mortgage debt
Issue: Took or threatened to take negative or legal action — Seized or attempted to seize your property
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
XXXX  Report : XXXX Self-Identification as a Debt Collector Finding XXXX  LLC d/b/a Shellpoint Mortgage Servicing identifies itself in correspondence and call disclosures as a debt collector. This acknowledgment subjects its conduct not only to mortgage-servicing rules under RESPA and TILA, but also to the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 et seq. When viewed alongside the five contradictory ledgers and fourteen recorded calls, the companys statements to regulators and consumers constitute multiple violations of XXXXXXXX XXXX  and XXXX. 



Evidence XXXX. Written and Verbal Disclosures Customer letters and voicemail greetings include : This is NewRez LLC d/b/a Shellpoint Mortgage Servicing, a debt collector. This is an attempt to collect a debt. 
Each of the XXXX recordings contains that disclaimer or its equivalent, confirming statutory self-designation. 
XXXX. Contradictory Account Statements Five ledgers show alternating balances and unapplied-fund totals. 
Example : the XX/XX/XXXX payment of {$750.00} was acknowledged on that date, removed by XX/XX/XXXX, and missing by XX/XX/XXXX. 
XXXX. Post-Dispute Collection Activity After formal Notices of Error ( XXXX XXXX XXXX XXXX, collection communications continued : payment reminders, delinquency notices, and payoff calls. 
Each communication occurred after NewRez had actual notice of dispute. 
XXXX. Regulatory Notice XXXX XXXX XXXX confirmed receipt of the complaint and attachments. 
OCC referral and CFPB filings establish that NewRez knew or should have known the debt was disputed and under review.

Interpretation A. Statutory Framework Statute Requirement Violation Evident 15 U.S.C. 1692e ( 2 ) ( A ) Prohibits false representation of the character or amount of a debt.

Conflicting balances across ledgers and call statements.

1692f ( 1 ) Forbids collection of any amount not expressly authorized by the agreement or law.

Late fees assessed while funds held unapplied.

1692g ( b ) Collection must cease until verification provided when a debt is disputed in writing.

Calls and notices continued after XXXX receipt. 
XXXX ( XXXX ) Bars oppressive or harassing conduct in connection with debt collection. 
Repeated contradictory calls causing borrower distress. 
XXXX Case-Law XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ) : misstated balance constitutes FDCPA violation even if later corrected. 
XXXXXXXX XXXX XXXX XXXXXXXX XXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX XXXX XXXX ) : form responses after notice show systemic disregard. 
XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX ) : failure to apply payments and continued collection = willful violation. 
XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) : mortgage servicers that regularly collect debts are debt collectors under FDCPA. 

XXXX Overlap with RESPA and TILA Because NewRez functions simultaneously as servicer and debt collector, each inaccurate ledger entry and collection notice doubles as a violation of 12 C.F.R. 1024.35 ( failure to correct errors ) and 12 C.F.R. 1026.36 ( c ) ( 1 ) ( failure to credit payments ). Courts treat concurrent violations as aggravating factors supporting enhanced statutory damages.

Risk Impact XXXX. Statutory Damages Up to {$1000.00} per consumer under FDCPA ( 1692k ( a ) ( 2 ) ( A ) ), plus actual damages and attorney fees. 
Each discrete communication that misstates a balance can be counted separately for pattern evidence. 
XXXX. Class-Action Exposure Uniform disclosures ( This is a debt collector ) plus uniform misconduct ( unapplied payments, contradictory balances ) meet Rule 23 commonality requirements. 
Potential class size : all borrowers serviced by NewRez during the same software period. 
XXXX. Regulatory Penalties CFPB can impose civil money penalties under XXXX XXXX 12 U.S.C. 5565 ( XXXX XXXX Debt Collector Admission ( NewRez Website Disclosure ) Finding NewRez LLC d/b/a Shellpoint Mortgage Servicing publicly declares on its corporate website that it is a debt collector. This admission establishes standing under the Fair Debt Collection Practices Act ( FDCPA, 15 U.S.C. 1692 ) for all servicing communications and ledger activity, converting every false, misleading, or harassing act into a statutory violation. 



Evidence Source : NewRez official website ( www.newrez.com ) Servicing Legal Disclosure.

Text Extract : NewRez LLC dba Shellpoint Mortgage Servicing is a debt collector. This is an attempt to collect a debt and any information obtained will be used for that purpose.

Metadata : Screenshot captured XX/XX/XXXX showing official XXXX  and XXXX XXXX  XXXX. 



Interpretation XXXX. FDCPA Jurisdiction Confirmed. 
Because NewRez explicitly identifies itself as a debt collector, it is subject to FDCPA provisions regardless of whether it also claims servicer status. 
XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) entities that regularly collect debts, even on behalf of another, are debt collectors within the Acts scope. 
XXXX. Corroboration of Pattern. 
This statement validates every recorded call beginning with a debt collector disclosure. 
The XXXX recordings and XXXX contradictory ledgers now represent direct violations of 1692e ( 2 ) ( A ) ( false representation of amount due ), 1692f ( 1 ) ( unlawful fee or balance ), and 1692g ( b ) ( continuing collection after written dispute ). 
XXXX. Intersection with RESPA/TILA.

Since the same conduct ( misapplied payments and false balances ) violates RESPA 1024.35 and TILA 1026.36 ( c ) ( 1 ), the FDCPA status adds treble exposurecivil liability under three separate statutory schemes. 
XXXX. Governance Implications for XXXX XXXX. 
XXXX executives file consolidated financials certifying the accuracy of subsidiary operations under XXXX XXXX and XXXX. 
Continued false accounting or collection by a self-declared debt collector constitutes reckless board-level oversight failure under XXXX and XXXXXXXX XXXX XXXXXXXX ( XXXX XXXX XXXX ) standards. 



Risk Impact Individual Liability : Each  misleading ledger, fee, or communication can yield up to {$1000.00} per violation plus actual damages and attorney fees ( 15 U.S.C. 1692k ).

Class Exposure : The uniform debt collector disclaimer ensures class commonality ; thousands of borrowers experience identical communications.

Regulatory Consequences : The CFPB can now frame this as a hybrid FDCPA/RESPA systemic case a rare and high-penalty designation.

Addendum Federal Confirmation of Debt Collection Classification Finding The CFPBs complaint taxonomy for mortgage debt explicitly includes categories such as false statements or representation, attempts to collect debt not owed, and took or threatened to take negative or legal action.

By routing your complaint through this form, the CFPB recognizes NewRezs conduct as debt-collection activitynot simply mortgage servicing. 



Evidence Source : Consumer Financial Protection Bureau, portal.consumerfinance.gov ( Mortgage Debt Complaint Form ). 
Observed Categories : False statements or representation ( trying to collect wrong amount ) Attempts to collect debt not owed Written notification about debt Took or threatened to take negative or legal action ( damage credit ) Each of these complaint tracks is derived from 15 U.S.C. 1692ef, confirming CFPB treats misapplied-payment servicing as a collection matter, not a servicing matter. 



Interpretation XXXX. Regulatory Acknowledgment : Submitting via this channel triggers CFPBs Debt Collection oversight branch, not its Mortgage Servicing division, meaning the Bureau itself recognizes NewRezs legal identity as a debt collector under FDCPA. 
XXXX. Scope of Violations : False Statements ( 1692e ( 2 ) ( A ) ) Contradictory ledgers and payoff figures.

Collection of Debt Not Owed ( 1692f ( 1 ) ) Holding unapplied payments while asserting delinquency. 
Threatened Negative Action ( 1692e ( 5 ) ) Credit reporting or foreclosure threats despite active disputes. 
Failure to Cease Collection ( 1692g ( b ) ) Continued calls after formaXXXX XXXX 
XXXX. Procedural Significance : Once logged in this category, your complaint becomes part of CFPBs annual FDCPA enforcement data set, which can later substantiate a pattern or practice claim for class litigation. 



Risk Impact Administrative : CFPB now has the statutory authority to impose civil money penalties under 12 U.S.C. 5565 ( c ). 
Litigation : Class-action attorneys can cite CFPBs own classification as proof of industry-recognized debt-collection conduct. 
Governance : XXXX XXXX can not argue servicing exemption because their subsidiarys federal regulator formally tagged the behavior as debt collection. 

Governance and Securities Liability Integration : Rithm Capitals Oversight Failure XXXX. Framework : Parent-Subsidiary Accountability XXXX XXXX XXXX wholly owns and controls NewRez LLC d/b/a Shellpoint Mortgage Servicing, consolidating all subsidiary performance into its SEC filings and XXXX XXXX XXXX XXXX certifications. 
This control structure establishes agency and governance liabilityRithms board and C-suite have a non-delegable duty to monitor and remediate subsidiary legal risk. 

Authority : In 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 XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX : Boards must implement and actively oversee compliance systems that identify and address mission-critical risks. Mortgage-servicing compliance and consumer-protection law are XXXX core business risks. 



XXXX. Finding : Systemic Compliance Collapse at Subsidiary Level Evidence shows that NewRez/Shellpoint : Admitted being a debt collector under the FDCPA ( 15 U.S.C. 1692 ).

Engaged in false balance reporting, misapplication of payments, and pre-dispute foreclosure threats.

Produced contradictory ledgers and call transcripts acknowledging unapplied funds.

Issued automated responses instead of substantive RESPA 1024.35 error-resolution letters.

These acts constitute willful noncompliance with : FDCPA 1692e, 1692f, 1692g ( b ) ( false, unfair, and continued collection ).

RESPA 12 C.F.R. 1024.3536 ( failure to investigate borrower errors ). 
TILA 12 C.F.R. 1026.36 ( c ) ( improper application of payments ). 



XXXX. XXXX Oversight Breach under XXXX XXXX executivesresponsible for certifying NewRezs operations and compliance controlsfailed to : XXXX. Implement an adequate information-reporting system. 
XXXX. Respond to red-flag complaints, CFPB filings, and TDFI inquiries. 
XXXX. Escalate systemic misapplication of borrower funds. 

This constitutes a XXXX mission-critical oversight failure : knowing inaction after red-flag warnings in the core line of business ( mortgage servicing ). 

Under XXXX, such failure rises to bad-faith breach of fiduciary duty of loyalty, actionable under XXXX  XXXX XXXX XXXX 



XXXX. XXXX and XXXX  XXXXXXXX XXXX XXXX XXXX-certified Form XXXX  and XXXX filings attest to : The accuracy of financial data derived from NewRezs operations.

The effectiveness of internal controls over financial reporting and compliance.

Given the known misconduct and pending complaints, those certifications may constitute false or misleading statements under : XXXX XXXX XXXX XXXX false XXXX certification XXXX criminal exposure ( 18 U.S.C. 1350 ).

Exchange Act Rule 10b-5 ( 17 C.F.R. 240.10b-5 ) prohibits material misrepresentation or omission in connection with the purchase or sale of securities.

Material Omission : Failure to disclose ongoing CFPB/state investigations, RESPA violations XXXX or wrongful-foreclosure conduct that directly affects XXXX servicing income and liability reserves. 

Precedent : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX executives liable for false XXXX  certifications. 
In XXXX XXXX  XXXX failure to disclose known safety/systemic control risks = material misrepresentation. 



XXXX. Governance and Risk Impact Domain Violation/Failure Liability Path Compliance Oversight Ignored systemic RESPA/FDCPA violations Caremark / XXXX fiduciary XXXX SEC Filings False XXXX certifications XXXX omission of investigations Rule XXXX, XXXX XXXXXXXX Consumer Protection Debt collection without right to possession FDCPA 1692f ( 6 ) Federal Banking Law Pre-dispute foreclosure 12 C.F.R. 1024.35 ( i ) Governance Integrity Reckless failure to monitor core risk XXXX v. XXXX XXXX ( loyalty breach ) XXXX. Conclusion NewRezs misconduct is not an isolated servicing failureit is a governance and disclosure failure at the parent-company level. 
By certifying financial statements containing revenue and compliance assertions from an unremediated, noncompliant subsidiary, XXXX XXXX executives and board expose themselves to : Derivative liability under Delaware law ( XXXX ) XXXX 
Civil and criminal liability undeXXXX XXXX XXXX. 
Securities-fraud exposure under XXXXXXXX XXXX XXXX XXXX 


I have additional manipulation of my ledger as well

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