Consumer complaint received 2025-10-12 00:00:00
Product: Mortgage — Conventional home 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: NY

Complaint narrative:
My name is XXXX XXXX, and I am the homeowner and borrower of record for my property at XXXX XXXX XXXX, XXXX, NY XXXX. 

In XXXX, while I was in an active XXXX XXXX XXXXXXXX XXXX in the XXXX XXXX XXXX XXXX XXXX  , Shellpoint Mortgage Servicing / NewRez demanded {$10000.00} from me even though they were already receiving my regular mortgage payments through my bankruptcy trustee. This collection attempt happened during a period when I was under bankruptcy court protection and Shellpoint was prohibited from billing me directly or demanding any separate payments outside of the court-approved plan. 

Later, in XXXX, while I was still in bankruptcy, Shellpoint/NewRez added extra principal and interest charges to cover escrow even though my escrow was being managed under the XXXX program. These changes made my monthly payments unaffordable and caused my account to appear past due even though I was making my payments through the bankruptcy court. 

Shellpoint/NewRezs actions have made it extremely hard for me to keep my home. Their accounting practices do not match my court-approved XXXX XXXX plan, and their statements are inconsistent. They continue to treat me as delinquent, which has damaged my ability to maintain payment arrangements and caused me emotional and financial stress. 

I am the only person listed on the deed since XXXX, but the loan is still in both my name and another borrower, XXXX XXXX, who has not lived in the home or contributed to the mortgage since XXXX. Shellpoint continues to send joint notices and paperwork even though I am the only homeowner. 

I believe XXXXhellpoint/NewRez violated : Bankruptcy law ( Sections 362 and 524 ) by trying to collect while I was protected under XXXX XXXX, RESPA / CFPB servicing rules by misapplying escrow and principal, and CFPB Regulation X by continuing foreclosure and delinquency activity while my account was under legal review. 

I am requesting that the CFPB review Shellpoint/NewRezs conduct during and after my XXXX XXXX XXXX and that they correct my account, remove any false delinquency reporting, and confirm compliance with federal servicing laws. 

1. Bankruptcy Law Violations ( XXXX XXXX XXXX XXXX ) a. Violation of Bankruptcy Code 362 and 524 Automatic Stay and Discharge Protections During your active XXXX XXXX ( XXXX ), Shellpoint/NewRez demanded {$10000.00} while payments were being made through your court-appointed trustee.

That act constitutes an unauthorized collection attempt while the debt was under court control potentially a willful stay violation under 362 ( a ).

If this continued after your plan confirmation or discharge, it may also violate 524 ( a ) ( 2 ), the discharge injunction. 

b. Improper Accounting During Court-Supervised Plan They received trustee disbursements but also billed you directly, creating a dual payment stream. 
This is explicitly prohibited under federal bankruptcy servicing standards ( see In re Gravel, 6th Cir. 2021 ) and CFPB bulletin guidance for mortgage servicers handling XXXX XXXX loans.

2. RESPA / CFPB Mortgage Servicing Rule Violations a. Misapplication of Payments and Escrow Funds Shellpoint added principal and interest to cover escrow shortages in 2023 while you were still in bankruptcy.

Under 12 CFR 1024.17 ( k ) ( 5 ), a servicer can not unilaterally increase escrow or reallocate principal/interest without proper notice and an analysis based on actual escrow account data. 
Since your escrow was managed under the XXXX program, they likely breached the requirement to maintain consistent treatment during bankruptcy-protected repayment periods. 

b. Failure to Honor Cram-Down Terms Once a cram-down is approved, the creditor must adjust the loan balance and payments per the court order. 
Shellpoints statements from XXXX still show inflated principal and interest inconsistent with your modified plan. 
This is a RESPA 1024.41 ( b ) ( 1 ) violation failure to apply loss mitigation or court-approved modification terms accurately.

c. Dual Tracking / False Delinquency Reporting While you were under active review and bankruptcy protection, Shellpoint continued to list you as delinquent and threatened foreclosure, as seen in the Delinquency Notice boxes on multiple statements. 
That violates RESPA 1024.41 ( g ) and CFPB Regulation X prohibiting foreclosure activity while a modification or legal protection is in effect. 


Name : XXXX XXXX Address : XXXX XXXX XXXX, XXXX, NY XXXX Email : XXXX Phone : 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