Consumer complaint received 2025-11-26 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: FL

Complaint narrative:
Dear Consumer Financial Protection Bureau, I am filing this complaint regarding significant servicing errors, unexplained reversals, and unusual payment handling practices by my mortgage servicer. These issues have resulted in an inflated principal balance, inconsistent payment application, and confusing account activity that I have been unable to resolve directly with the servicer. 

Summary of Issues 1. Principal balance is incorrect by approximately {$1200.00} Based on the servicers own transaction history : My principal balance on XX/XX/XXXX when the loan was transferred was {$130000.00}. 

All principal-impacting payments since that date total {$3900.00}. 

The expected principal balance is therefore {$130000.00}. 

However, the servicer reports a principal balance of {$130000.00}. 

This reflects a discrepancy of {$1200.00}, likely due to : Payment misapplication, Improper reversal of principal, Failure to apply funds correctly. 
Despite making regular payments and several principal-only payments, the balance does not align with basic amortization math or the servicers transaction log. 

2. Unusual and concerning payment reversals and re-postings The transaction history shows multiple instances of payments being placed into Unapplied Funds, then reversed, reposted, or partially applied, without any explanation. Examples include : - {$600.00} principal-only payment on XX/XX/XXXX was completely reversed, which is highly unusual for a principal-only payment unless done in error. 

- Aregular payment on XX/XX/XXXX was broken into multiple pieces : - {$600.00} unapplied deposit - A {$1100.00} unapplied reversal - A + {$1100.00} reposted payment - A {$18.00} unapplied reversal, followed by a late-charge payment These transactions resemble error corrections rather than legitimate servicing activity. The servicer has not provided any reason for these actions. 

3. Multiple Unapplied Payment entries with unexplained movement of funds. 

Although the net unapplied balance equals zero, the account shows several deposits to unapplied funds, several full and partial reversals, payments being pulled back out of unapplied, funds moving between applied and unapplied without any transparency. 

This pattern suggests potential improper handling of mortgage payments, possible violation of proper application rules under RESPA, and creates substantial confusion and risk for the borrower. 

4. Late fee assessment and reversals without clear rationale A late charge of {$59.00} was assessed on XX/XX/XXXX, then reversed. 
Additional small late-fee payments were posted even though the major fee was subsequently removed. This raises concern that late fees are being generated incorrectly, payments may not be credited on the date received, or the servicers system is cycling payments in a way that falsely triggers fees.

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