Consumer complaint received 2026-02-22 00:00:00
Product: Debt collection — Mortgage debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: Shellpoint Partners, LLC
State: PA

Complaint narrative:
I am a Pennsylvania homeowner whose mortgage was serviced by XXXX XXXX XXXX XXXX ( XXXX  ) and is now serviced by Newrez LLC d/b/a Shellpoint Mortgage Servicing. My loan is in foreclosure even though state XXXX XXXX XXXX XXXX XXXX XXXX XXXX reinstated the loan and then prepaid several months of forward mortgage payments. I believe the servicers violated RESPA ( Reg X ) and TILA ( Reg Z ) by misapplying payments, mishandling escrow and assistance funds, and issuing inaccurate periodic statements that created an artificial default. 

In XX/XX/XXXX, XXXX paid about {$29000.00} to SLS as Mortgage Reinstatement ( Servicer ), which the XXXX final statement shows was to bring all pastdue principal, interest, and escrow ( including delinquent taxes/insurance ) fully current. 
After reinstatement, XXXX issued two XXXX XXXX XXXX XXXX Payment disbursements of {$3600.00} each on XX/XX/XXXX and XX/XX/XXXX, totaling about {$7200.00}, specifically to cover future monthly installments ( principal, interest, and escrow ) for several months after reinstatement. 

My regular full monthly payment is about {$520.00}, so the forward payments would have covered out of the {$7200.00} funds. 

Instead of crediting these XXXX  funds one full installment at a time, my XX/XX/XXXX / XX/XX/XXXX mortgage statement shows a {$3600.00} Mortgage Payment on XX/XX/XXXX with only a portion applied to interest, principal, and escrow and the rest pushed into : Unapplied/Suspense._ Later statements dated XX/XX/XXXX and XX/XX/XXXX still treat the XXXX, XXXX, and XX/XX/XXXX payments as due and unpaid, despite the XXXX XXXX funds that were earmarked for those exact months. 

This appears to violate XXXX XXXX and XXXX XXXX rules requiring servicers to promptly and accurately credit payments and properly apply them to principal, interest, and escrow ( 12 C.F.R. 1024.35 ( b ) ( 2 ) ( 3 ), 1024.17, 1026.36 ( c ) ). 

Separately, a XX/XX/XXXX letter from XXXX admits it made an advance on my behalf for delinquent taxes or insurance that was not needed, states that I had already paid that item, and says they removed the collection of escrow for the advanced item and adjusted your payment accordingly. 

Before that correction, my XX/XX/XXXX statement showed an extremely large escrow balance and tax/insurance amounts that do not match my XXXX Form XXXX propertytax totals. 

Even after this admission, my XXXX taxes were not timely paid out of escrow, which is inconsistent with RESPA XXXXaccount requirements in 12 C.F.R. 1024.17. 
Despite reinstatement and forward assistance, Newrez/Shellpoint filed a verified foreclosure complaint in XX/XX/XXXX in the Court of Common Pleas of XXXX XXXX XXXX 
Paragraph XXXX of the complaint alleges my first missed payment was XX/XX/XXXX and that I failed to pay each month thereafter, and Paragraph XXXX claims that as of XX/XX/XXXX I owed {$87000.00}, including regular interest from XX/XX/XXXX through XX/XX/XXXX and additional escrow advances. 
A Document Verification Specialist signed a verification under penalty of 18 Pa.C.S. 4904 swearing that these statements are true. 
Those allegations ignore the PAHAF reinstatement and forwardpayment funds and the servicers own XX/XX/XXXX admission that an escrow advance was unnecessary, and they contradict federal requirements to maintain accurate servicing records and provide correct periodic and payoff information ( 12 C.F.R. 1024.38, 1026.41 ). 

Because of these actions, I have been treated as in default and pushed into foreclosure for payments that were already funded with public assistance money and mishandled by the servicers. 
My credit has been damaged, I have incurred extra fees and legal costs, and I am at risk of losing my home due to what looks like systemic misapplication of assistance funds, escrow errors, and false default reporting.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation