Consumer complaint received 2025-11-19 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
IMMINENT HARM NewRez LLC d/b/a Shellpoint Mortgage Servicing Attn : General Counsel / Litigation Department XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, SC XXXX XXXX XXXX XXXX XXXX 
Attn : General Counsel / Chief Legal Officer Re : Renewed Litigation Hold & Preservation of Evidence Notice Loan No. : XXXX | Property : XXXX XXXX XXXX, XXXX, TN XXXX Borrower : XXXX XXXX ( XXXX XXXX P & T XXXX Veteran, VA Loan ) To Counsel and Compliance : This letter serves as a renewed, expanded, and formal LITIGATION HOLD / PRESERVATION OF EVIDENCE NOTICE. 

It is being issued because you improperly closed a prior RESPA Notice of Error and related disputes as duplicate without providing the investigation, written findings, or corrections required by law, and despite your actual knowledge that the account is in active dispute, that regulatory complaints are pending, and that litigation and enforcement are reasonably anticipated. 

Your decision to treat a lawful error notice and legal hold as duplicate is evidence of willful disregard of your preservation obligations and will be presented as such to courts and regulators. 



I. Background : Prior Legal Hold & RESPA Notice Ignored XXXX. I previously issued a RESPA Notice of Error under 12 C.F.R. 1024.35 and explicitly placed you on notice that : the loan ledger is corrupted ; unapplied funds were used to manufacture delinquency ; a false XX/XX/XXXX default / pre-foreclosure notice was issued ; call recordings contain admissions that only {$750.00} was due while you held {$12000.00} in unapplied ; and a complaint and investigation were pending with the Consumer Financial Protection Bureau ( CFPB ) and the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. 
XXXX. I also made clear that litigation and enforcement were reasonably anticipated and that all relevant evidence must be preserved. 
XXXX. Rather than comply, you : caused at least XXXX RESPA Notice of Error to be closed as duplicate ; failed to provide a compliant written response under 12 C.F.R. 1024.35 ( e ) ; and continued using corrupted data to threaten foreclosure and assess fees. 

This conduct signals a conscious attempt to dodge legal and regulatory obligations, not a good-faith response to a borrower error notice. 

For avoidance of doubt : this letter renews and broadens the litigation hold. 



XXXX. Duty to Preserve Litigation & Enforcement Are Reasonably Anticipated There is no question that you are on notice of potential litigation and regulatory action. Among other things : Multiple RESPA Notices of Error and RFIs have been submitted. 
Numerous CFPB complaints have been filed, including but not limited to XXXX and related complaint numbers. 
XXXX has opened a complaint and received your XX/XX/XXXX response letter regarding my loan. 
The loan involves a XXXX mortgage to a 100 % permanent & total XXXX veteran facing wrongful foreclosure threats. 
You issued a pre-foreclosure notice while holding substantial funds in unapplied status. 
I have explicitly raised claims under RESPA, Regulation X, FDCPA, FCRA, Dodd-Frank UDAAP , Tennessee consumer-protection law, VA servicing standards, and potential securities/controls issues at the Rithm level. 

Under well-established spoliation doctrine and federal law, including Fed. XXXX XXXX. P. XXXX, XXXX, and XXXX ( XXXX ) and cases such as XXXX XXXX XXXX XXXX XXXX, XXXX F.R.D. XXXX ( S.D.N.Y. XXXX ), and XXXX v. XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ), your duty to preserve evidence arises when litigation is reasonably anticipated, not when a complaint is actually filed in court. 

That standard has been met several times over. 



XXXX. Scope of the Litigation Hold What Must Be Preserved Effective immediately, you are directed to suspend all routine and ad hoc destruction, overwriting, or alteration of any materials potentially relevant to : my loan ( Loan No. [ XXXX ] ), your servicing systems and practices, and your responses to regulators and investors. 

This includes, without limitation : XXXX. Loan-Level Records & Ledgers Full payment history for my account from XX/XX/XXXX to present, including every version of the ledger ( before and after any reversals, adjustments, or modifications ). 
All records of unapplied/suspense funds, reversals, and reclassifications. 
All escrow analyses and escrow transaction histories. 
XXXX. Default, Foreclosure, & Collection Activity Copies ( and system templates ) of all default, acceleration, and pre-foreclosure notices, including the XX/XX/XXXX letter. 
Internal notes, workflows, and servicing system entries related to any decision to code my loan as delinquent or refer it to foreclosure. 
All property inspection requests, invoices, and reports ; all entries for inspection fees or property-preservation fees. 
XXXX. Call Recordings, Transcripts, and Internal Notes Audio recordings and/or transcripts of all calls with me and with XXXX XXXX referencing this loan, especially the calls on and around : XX/XX/XXXX XX/XX/XXXX calls quoting conflicting payment amounts XXXX XXXX XXXX calls about unapplied funds and property inspections All internal agent notes, servicing comments, and escalation logs tied to those calls. 
XXXX. Compliance, Risk, Audit, and Complaint Files All internal complaint files, including CFPB, XXXX, and internal case or ticket systems related to my account. 
Any internal audits, QA reviews, risk assessments, or root cause analyses addressing unapplied funds, false delinquency, XXXX servicing, or duplicative/erroneous default notices. 
All documents relating to your decision to mark my RESPA Notice of Error and complaints as duplicate. 
XXXX. Policies, Procedures, & System Documentation Servicing policies/procedures for : unapplied funds, suspense accounts, default/foreclosure initiation, VA-loan handling, property inspections, escrow analysis, and RESPA Notices of Error. 
System documentation or vendor contracts for platforms used to service my loan ( payment processing systems, collections platforms, dialer/phone systems, recording systems, document-generation platforms, etc. ). 
XXXX. Emails & ESI ( Electronically Stored Information ) Emails, chat messages, Teams/Slack messages , and other ESI among employees, managers, compliance staff, and executives concerning : my loan, unapplied funds and payment reversals, my CFPB and XXXX complaints, treatment of my prior legal hold notices, instructions on how to respond to my RESPA notices XXXX and decision-making about closing items as duplicate. 
Communications with any outside counsel or vendors, including but not limited to foreclosure counsel, collection agencies, sub-servicers, and XXXX corporate/legal. 
XXXX. Rithm / NewRez XXXX Shellpoint / Investor-Level Communications Communications between NewRez/Shellpoint and XXXX XXXX XXXX relating to my loan, similar loans, unapplied funds policies, or handling of XXXX accounts. 
Any communications referencing my complaints, my CFPB activity, or my status as a XXXX XXXX P & T XXXX veteran. 

This preservation requirement extends to all locations where such information may be stored, including on-premises servers, cloud systems, laptops, mobile devices, backup tapes, archives, and XXXX-party vendors. 



IV. Closing Prior Matters as Duplicate Does NOT Extinguish Your Legal Hold Obligations Your recent behavior, including : closing prior RESPA Notices of Error as duplicate, issuing non-substantive CFPB responses, and refusing to provide a compliant written RESPA response, does not terminate or diminish your duty to preserve evidence. 

To the contrary, it will be argued as proof of willful noncompliance and bad-faith spoliation risk, including : an attempt to avoid creating a discoverable paper trail of your errors ; a pattern of dodging Regulation X obligations ; and deliberate efforts to minimize documentary exposure while continuing harmful servicing conduct. 

Any destruction or alteration of relevant data after receipt of this letter will be treated as knowing spoliation and cited in support of : adverse inference instructions, evidentiary preclusion, monetary sanctions, and expanded damages claims. 



XXXX Confirmation of Hold & Point of Contact Within 14 days of receipt of this letter, please : XXXX. Confirm in writing that a litigation hold has been implemented, XXXX. Identify the individual ( XXXX ) responsible for coordinating your response and preservation efforts, and XXXX. Confirm that routine deletion, overwriting, and data-retention schedules have been suspended as to all categories identified in XXXX XXXX. 

Failure to confirm will not relieve you of your obligations ; it will only strengthen the argument that any loss of evidence was willful or reckless. 



VI. Reservation of Rights Nothing in this letter waives any rights or remedies I may hold under : RESPA / Regulation X ( 12 U.S.C. 2605 ; 12 C.F.R. pt. 1024 ), FDCPA ( 15 U.S.C. 1692 et seq. ), FCRA ( 15 U.S.C. 1681 et seq. ), Dodd-Frank UDAAP ( 12 U.S.C. 5531, 5536 ), VA servicing rules and related regulations, Tennessee state law, or any other applicable federal or state law, including securities-related obligations at the XXXX level. 

All rights are expressly reserved, including seeking sanctions for spoliation if you fail to honor this legal hold.

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