Consumer complaint received 2026-01-23 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
To Whom It May Concern at the CFPB, I am submitting this letter as a formal complaint and dispute regarding predatory and deceptive lending and servicing practices by Shellpoint Mortgage Servicing ( dba Newrez LLC ), which acquired our second mortgage from XXXX XXXX XXXX ( XXXX  ). Shellpoint is currently threatening foreclosure and issuance of a Notice of Default based on an inaccurate and disputed loan balance. 

Our original second mortgage, originated in XX/XX/XXXX, was for {$88000.00} with a 20-year maturity. We made all payments on time for the first seven years. During the housing crisis, we were advised to temporarily suspend payments on both our first and second mortgages in order to pursue a loan modification. While a modification was granted on the first mortgage, XXXX denied a modification on the second loan. 

In XXXX, XXXX threatened foreclosure. In response, on XX/XX/XXXX, we wired a lump-sum payment of {$53000.00} to bring the account current. We were explicitly advised that this payment would cover all past-due payments, late fees, and penalty fees. Since that date, we have continued to make all required payments on time. 

Despite this, Shellpoint is now demanding a payoff of {$84000.00}, claiming the loan has reached maturity. This demand is unreasonable, unsupported, and mathematically indefensible. After seven years of on-time payments, followed by a lump-sum payment exceeding {$53000.00}, and continued timely payments thereafter, Shellpoint claims that only {$3500.00} has been applied to principal. Based on these facts, this loan should be paid off or carry a minimal remaining balance, not an amount approaching the original loan value. As of XX/XX/XXXX, Shellpoint has put a stop payment on the account not allowing us to make any payments. 

In addition, Shellpoint has engaged in repeated misrepresentations and servicing errors, including but not limited to : Falsely claiming to be in first lien position, when the loan is clearly a second mortgage. 
Improperly impounding our account for homeowners insurance, despite the fact that we have maintained continuous insurance coverage for over 20 years through our first mortgage servicer. 
Repeatedly disputing proof of insurance even after we have uploaded valid documentation multiple times. 
Misrepresenting that they lack our contact information, which has remained unchanged for over 20 years ( address, email addresses, and phone numbers ). 
Falsely stating that management could not return our calls for seven business days due to the law, a claim that appears to be entirely fabricated.

Failing to provide a complete and accurate accounting under the Real Estate Settlement Procedures Act ( RESPA ) from the loans origination in XX/XX/XXXXXXXX  through the present, despite multiple requests. 
This loan has been sold and transferred multiple times since origination, yet Shellpoint has failed to provide a lawful, transparent, and complete payment history or justification for the balance they are demanding. 

Shellpoint is now threatening a Notice of Default unless we immediately pay {$84000.00}, an amount we formally dispute as inaccurate and unsupported. Their actions constitute predatory lending and servicing practices, and we believe they are attempting to collect funds that are not legally owed. 

We respectfully request the CFPBs assistance in investigating this matter and holding Shellpoint Mortgage Servicing ( Newrez LLC ) accountable for these actions. We are seeking a full and accurate accounting, correction of the loan balance, cessation of foreclosure threats, and resolution of this matter in compliance with federal and state law.

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