Consumer complaint received 2025-07-22 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Lien release
Company: Shellpoint Partners, LLC
State: MS

Complaint narrative:
This complaint concerns Shellpoint Mortgage Servicing 's continued attempts to enforce and collect on a mortgage obligation that has been lawfully rescinded, extinguished, and tendered for redemption by the Grantor of the Trust, who is the Issuer and original creditor of the underlying promissory note. Despite multiple Qualified Written Requests ( QWRs ), a Notice of Rescission, and formal tenders of lawful payment instruments, Shellpoint continues to threaten foreclosure, violating multiple state and federal laws. 

Pursuant to 12 U.S.C. 5531 and 5536 ( Dodd-Frank Act Title X ), Shellpoint has engaged in unfair, deceptive, and abusive acts and practices ( UDAAPs ) by : Refusing to provide a forensic accounting per GAAP and FASB ASC 860, Refusing to disclose the CUSIP and pool information for the securitized asset, Failing to respond lawfully under 12 C.F.R. 1024.35 & 1024.36 ( RESPA Reg X ), Concealing the credit origination nature of the transaction in violation of TILA ( 15 U.S.C. 1601 et seq. ), Failing to redeem lawful instruments tendered pursuant to 12 U.S.C. 411, which mandates that Federal Reserve Notes are redeemable in lawful money upon demand.

As the Issuer/Maker of the original promissory note, the undersignedon behalf of the Trusthas exercised lawful rights of : Setoff and recoupment based on the notes function as both the asset and the source of consideration, Redemption of lawful money under 12 U.S.C. 411 and Federal Reserve Act 13 and 16, Extinguishment via tender under UCC 3-603 ( b ) and 3-604, supported by the novation of debt instruments and delivery of a perfected Trust interest.

Shellpoint and its principals have ignored lawful requests for : A complete chain of endorsements on the original note ; A signed Satisfaction of Lien under 15 U.S.C. 1635 ; Full disclosure of in-clearings and investor account credits ; Accounting reconciliation using GAAP and FASB standards .

By obstructing the consumers right to redeem and offset the obligation, Shellpoint is violating : 15 U.S.C. 1692g ( FDCPA ) failure to validate the debt and falsely asserting balance owed, 15 U.S.C. 1691 ( ECOA ) adverse action and discrimination against the Trust 's lawful claim, 18 U.S.C. 1341, 1343, 1344 mail, wire, and bank fraud due to continued collection efforts on an extinguished debt.

The note has been assigned to the Trust, recorded in XXXX XXXX, Mississippi ( DK M BK 6 PG 342, XXXX XXXX XXXX ), and Shellpoint has been placed on full legal notice, including via nonnegotiable instruments and commercial tender. Their inaction and continued threats to foreclose constitute unlawful intimidation and enforcement on an extinguished obligation.

Under the DoddFrank Wall Street Reform and Consumer Protection Act, Pub. L. 111-203, the CFPB is granted authority to enforce consumer protection laws and prohibit financial practices that are deceptive, unfair, or abusive. Specifically : Title X, Section 1031 ( b ) ( 12U.S.C. 5531 ( b ) ) mandates prohibition of abusive acts or practices including interference with consumer rights. 
Section 1032 ( a ) ( 12U.S.C. 5532 ( a ) ) empowers enforcement against misrepresentation or unfair practices.

Crucially, DoddFrank affirms that a consumer, as the maker/issuer of the note, retains rights to setoff and recoupment, independent of servicer actions.

Furthermore, the servicer and associated parties ( including the securitization trustee bank ) have refused : To produce the original promissory note with full endorsement history, To provide the CUSIP or asset ID for the pooled bond or trust instrument, To disclose or release proceeds or credits derived from the asset, and To allow lawful access to the in-clearings account, preventing the consumer from applying a lawful setoff or recoupment of the obligation.

These failures amount to willful suppression of material financial data, actionable under : 15 U.S.C. 1691 et seq. ( ECOA ) discriminatory practices against the creditor-consumer, 12 C.F.R. 1024.35 and 1024.36 ( RESPA Regulation X ) servicers failure to properly respond to a Qualified Written Request ( QWR ), 15 U.S.C. 1692g ( FDCPA ) refusal to validate the debt and show proper chain of title or accounting, and 18 U.S.C. 1341, 1343, and 1344 mail, wire, and bank fraud by continuing collections and foreclosure threats on a fully extinguished or satisfied obligation.

The Trust has lawfully tendered nonnegotiable promissory instruments for offset, in accordance with UCC 3-603 ( b ) ( tender of payment discharges obligation ), and has issued a Notice of Rescission based on material non-disclosure.

Parties Involved : Servicer : Shellpoint Mortgage Servicing ( NewRez LLC ) Trustee : U.S. Bank Trust National Association ( as Trustee for XXXX XXXX  Trust ) Securitization Trust : Verus Securitization Trust XXXX Property Address : XXXX XXXX XXXX XXXX XXXX XXXX MS XXXX Loan Account : XXXX  GAAP and FASB 140/166 : Requires proper recognition and reporting of asset transfers, obligations, and extinguishments.

Shellpoint has obstructed access to the inclearings/internal offset accountsessential for setoff/recoupment processingand continues to act in violation of accounting transparency and consumer redemptive rights.

Obstruction of Novation and Setoff Settlement As Holder In Due Course ( HIDC ), the Trust has lawfully recorded transfer of the deed and note ( DeSoto County, MS Book 6, Page 342, recorded XXXX  ).

The Trust tendered two lawful promissory instruments : Instrument No. 0001 {$320000.00} ( dated XXXX  ) Instrument No. XXXX  {$400000.00} ( dated XXXX ) Shellpoint has failed to apply these instruments for lawful setoff per Federal Reserve Operating Circular No. 10, and has further failed to forward settlement documents to the proper parties, violating 12 C.F.R. 1026 and fair credit reporting duties.

By ignoring all lawful demands for setoff, forensic audit, or redemption, the servicer and associated financial parties are committing systemic, documented violations of federal law. I request immediate CFPB enforcement and referral to the U.S. Attorney General, Office of the Comptroller of the Currency ( OCC ), and Federal Reserve Inspector General for full investigation.

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