Consumer complaint received 2025-10-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Shellpoint Partners, LLC
State: FL

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX XXXX - Cell XXXX XX/XX/XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX, XXXX Washington, DC XXXX Via Email to CFPB portal Dear Sir/Madam : This is a follow up complaint to my response dated XX/XX/XXXX Regarding Shellpoint Mortgage Servicing, ( a/k/a New Rez LLC. ). My original complaint was Complaint # XXXX If you will read the emails following between myself and XXXX XXXX of Shellpoint, you can see that I was ultimately proven correct in that I was entitled to interest rate reduction under the CARES ACT according to XXXX XXXX guidelines . However, that is not what happened. 

The emails will show that Shellpoint engaged in a deceitful and deceptive practice by dual tracking my account, acknowledging my rights to the modification, while at the same time, 22 days later, violated federal law by electronically filing a foreclosure action against me in XXXX XXXX, XXXX. The first page of the action is included, and from the header at the top left of the page you can see that it was filed on XX/XX/XXXX as File # XXXX, E-FILED, XX/XX/XXXX XXXX XXXX  This is a clear violation of CFPB Regulation X, a violation under the Consumer Protection Financial Act of 2010, of the Dodd-Frank Act.

Section 12 C.F.R. 1024.41 ( g ) covers issues regarding what is referred to as dual tracking. Shellpoint began actively pursuing foreclosure while simultaneously assuring me that I would be accepted for loss mitigation pursuant to the CARES ACT.

( See Gresham v. Wells Fargo Bank, N.A., 642 F. Appx 355 ( 5th Cir. 2016 ) ; see also Herrera v. Bank of Am., N.A., No. 15-CV-62156, 2016 WL 4542105, at * 8 ( S.D. Fla. Aug. 31, 2016 ). Section 1024.41 ( g ) provides the prohibition on dual tracking, 12 C.F.R. 1024.41 ( a ) expressly provides consumers such as myself, a right of action in the event the servicer ignores that prohibition. Gresham v. Wells Fargo Bank, N.A., 642 F. Appx 355, 359 ( 5th Cir. 2016 ). 

My mortgage was originated through XXXX XXXX XXXX, who retained the servicing of the mortgage as the loan was sold to the XXXX XXXX XXXX XXXX  XXXX ( XXXX XXXX ). In XX/XX/XXXX servicing was transferred to Shellpoint and that is when the violations of law began. 

SHELLPOINT SENT A CHECK BACK TO ME IN THE AMOUNT OF {$4500.00}, THAT I PREVIOUSLY PAID TO THEM PER THEIR DEMAND. 

I HAVE BEEN UNABLE TO CASH THIS CHECK AS BANK WOULD NOT CLEAR IT. SO I HAVE PAID SHELLPOINT, ( INCLUDING THE CHECK ABOVE ), TOTAL OF {$17000.00} SINCE FIRST TRIAL MOD STARTED ON XX/XX/XXXX, WHICH WORKS OUT TO XXXX XXXX THROUGH XXXX XXXX, 13 MONTHS, AVERAGE OF {$1300.00} A MONTH. 

COMPARE TO THE ORIGINAL XXXX XXXX OF {$900.00}, TIMES 13 MONTHS = {$11000.00}. 

SO THROUGH ALL THE SHELLPOINT TRIAL MODS I PAID SHELLPOINT {$5800.00} MORE THAN THE ORIGINAL PAYMENT RATE. 

You can see by examining the documents contained herein my rights have been violated by the deceptive and manipulative practices of Shellpoint. I am therefore requesting that you investigate the facts as I have provided as to the conduct of Shellpoint. 

Sincerely, XXXX XXXX EMAILS FOLLOW BELOW : XX/XX/XXXX, XXXX Good Afternoon, After review of the file we are going to honor the loan modification but in order to proceed with the modification. To accept it we need for you to make the payments that would have been due as of today the amount is {$4500.00} along with the full divorce decree. Thanks in advance Best Regards XXXX XXXX Loss Mitigation Specialist Hours of Operation : Monday thru Friday XXXX. 

XXXX XXXX XXXX Toll Free XXXX XXXX XXXX XXXX XXXXXXXX XXXX XX/XX/XXXX, XXXX to XXXX me Good afternoon. 

Based on the most recent trial modification package I made a payment for XXXX in the amount of {$810.00}. When I tried to make the XXXX payment I was prevented from doing so, both on line and in telephone conversations with Shellpoint employees. I was not willing to take a chance on this sudden change of terms, so I actually used my XXXX  XXXX XXXX account to issue a payment to Shellpoint in the same amount, {$810.00}, which shows it cleared my account on XX/XX/XXXX, meaning that two of the three required payments have been made pursuant to the most recent trial mod package. So, if the trial mod document is to continue governing our relationship, the only payment I would be due for would be the XXXX payment of the same amount. Did these payments get credited to my account or were they put in a suspense account? 

So, I am not sure how you came up with the amount due as {$4500.00}. Can you explain that to me? 

Keep in mind that I have been trying for over two years to get the modification corrected to follow the federal CARES ACT with no success. Regardless, I have continued to make the payments at the amounts requested by Shellpoint knowing that they are overcharged based on the incorrect interest rate, feeling confident that eventually Shellpoint will correct the modification and my " overpayments '' will be correctly amortized and the excess could either be refunded to me or credited to the mortgage balance. 

I will gather the information you requested regarding my divorce and send it off to you via email. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX, XXXX to me Good Afternoon, We have reviewed the file and are going to honor the first modification approved with the COVID interest rate that would have had the first payment starting on XX/XX/XXXX. To accept this you will need to make the payments that would have been due as of today with that start date. We will take into consideration what has been paid in the meantime. Total amount is {$12000.00}. The difference of this and what has been received ( {$8100.00} ) is {$4500.00}. Hopefully this will help better understand. 

Thanks XXXX XXXX Loss Mitigation XXXX Hours of Operation : Monday thru Friday XXXX. 

XXXX XXXX XXXX Toll Free XXXX XXXX XXXX  From : XXXX XXXX XXXX Sent : Wednesday, XX/XX/XXXX XXXX XXXX  To : XXXX XXXX XXXX ; XXXX XXXX XXXX Subject : [ EXTERNAL ] Re : XXXX External Email. Please use caution before clicking on links or opening attachments. 

XXXX XXXX XXXX XX/XX/XXXX, XXXX to XXXX, me Good afternoon. Thank you for your note. 

Unfortunately your company has either missed XXXX XXXX or chooses to ignore all of my correspondence over the past two years. Further, you are not giving me proper credit for the payments I have made, for example posting my most recent two payments of {$810.00} as {$670.00} to the account. 

Shellpoint is not calculating the proper interest rate per the XXXX XXXX XXXX XXXX Reference Guide, XX/XX/XXXX edition, wherein the proper interest rate should be 2.875 %. I am again attaching a PDF copy of the Guide and I draw your attention to page # XXXX, where modification interest rates are shown. For the period in question the rate is clearly shown to be 2.875 %, not the 6 % as offered all along by Shellpoint. Regardless, I have made every payment at the higher rate thinking that at some point the correction will be made and the excess interest paid will be credited to the outstanding loan balance or refunded. This needs to be corrected and I will be happy to run the spreadsheet breaking down the payment overage that is due to be credited to me if someone internally does not know how to do it. 

XXXX XXXX XXXX XXXX XXXX attachment Scanned by XXXX XXXX XXXX XXXX XX/XX/XXXX, XXXX to lossmitigation, XXXX, me Re my loan # XXXX Good afternoon. 

I have a letter from Shellpoint acknowledging the servicing was incorrectly calculated when the servicing was transferred from XXXX to Shellpoint. Further, it confirms that the interest rate should have adjusted to the rate in the XXXX XXXX guidelines at 2.875 %, rather than the six percent employed by Shellpoint.

In my review of almost two years of payment to Shellpoint, history obtained from Shellpoint shows the payments were applied with no consistency and frequently shorted in their allocation, with funds being shown as " unapplied payment. '' In fact my most recent payment of {$810.00} to Shellpoint this month was likewise improperly credited. 

This situation has to be corrected for the entire time Shellpoint has been servicing my account. 

This is what needs to be done : 1. Since all of my payments to Shellpoint have been under the CARES Act since the servicing was outsourced to your company, starting with the initial offering of a modification, the payment amounts requested have to be recalculated. Whatever the amount was set as during the first three month trial period, you must subtract from that amount the funds set aside which were to be allocated to escrow for taxes and insurance. The remaining amount would be representative of principal and interest, and based on the erroneous documents sent to me that was calculated at six percent.

2. Run an amortization schedule based on the correct interest rate of 2.875 %, calculated on the mortgage balance. That will give the correct principal and interest to be charged based on 2.875 % XXXX XXXX stipulated rate for all of the payments I made to Shellpoint.. 

3. The amount determined as the principal and interest rate at 2.875 % is then subtracted from the principal and interest amount incorrectly calculated at the 6 percent rate.

4. The difference between the two amounts is payment overage that should be credited to the loan balance, thereby reducing the mortgage balance.

5. This needs to be calculated for every payment made to Shellpoint so that my account reflects the correct balance going forward. 

6. Prepare the final modification papers for my signature showing the corrected outstanding mortgage balance, the correct interest rate, and the remaining term for my signature.

I will run the above math myself this evening and forward it to you. I believe that when the account is corrected, there will be no additional {$4500.00} necessary as you have requested in your most recent email. 

Feel free to contact me should you have any questions. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXXXXXX XXXX XXXX * * END * *

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