Consumer complaint received 2025-11-04 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Shellpoint Partners, LLC
State: TN

Complaint narrative:
Complainants : XXXX XXXX XXXX XXXX XXXX Property / Loan XXXX XXXX XXXX XXXX, XXXX, TN XXXX Servicer / Respondent : Shellpoint Mortgage Servicing / NewRez LLC Parent / Risk Owner : XXXX XXXX XXXX XXXX 
Prepared by : XXXX XXXX Date Prepared : XX/XX/XXXX Executive Title Systemic Accept-and-Freeze Payment Misapplication, Unapplied Funds Hoarding, Escrow Misallocation, False Delinquency Reporting, and Post-Bankruptcy Collection Request for Immediate Forensic Audit, Preservation, and Enforcement Referral QUESTION PRESENTED Whether Shellpoint / NewRez have systematically accepted borrower payments, reclassified them to unapplied/suspense or unassigned, withheld and redeployed unapplied funds across months ( including issuing partial refunds ), frozen amortization and escrow accounting, and continued collection/billing activity ( including mailed statements ) against a discharged co-borrower conduct that violates federal consumer-finance statutes and justifies immediate CFPB intervention, monetary relief, remedial orders, and referral for enforcement. 

Short Answer : Yes. The attached forensic record ( transaction screenshots, enhanced XXXX recorded calls, mailed statements, and a reconciled payment chronology ) demonstrates repeated, same-day reversals of valid payments, admitted unapplied funds, and ledger concealment consistent with systemic servicing abuse under Regulation Z, Regulation X, RESPA, FDCPA/Reg F, and Dodd-Frank UDAAP authorities.

FACTUAL ALLEGATIONS FORENSIC CHRONOLOGY ( Verified ) 1. Preexisting Condition ( XX/XX/XXXX ) : Account showed {$2000.00} unapplied ( suspense/unapplied ledger ). 
2. XX/XX/XXXX XXXX Payment : XXXX XXXX made {$5000.00} on XX/XX/XXXX. System records and portal evidence show {$2000.00} applied to clear the XXXX unapplied, with the remainder posted toward XXXX obligations. 
3. XX/XX/XXXX ( XXXX  ) Supplemental Payment : A {$750.00} supplemental payment was posted ; on a recorded call the agent stated the loan was all paid up. 
4. XX/XX/XXXX ( XXXX  ) XXXX Payment ( XXXX  Event ) : XXXX made a {$3900.00} regular mortgage payment ( allocation per portal/XXXX  : Principal {$840.00} ; Interest {$2500.00} ; Escrow {$520.00} ). Initially posted as a Regular Payment, the identical amount was later reclassified the same day to Unassigned / Unapplied.

After reclassification the principal balance did not decline ( remained fixed at {$580000.00} ), demonstrating frozen amortization. 
The portal thereafter displayed Past Due {$5000.00}, Late Fees {$1000.00}, and Escrow Deficit {$2700.00} despite the account being current per the XX/XX/XXXX XXXX  agent confirmation. 
5. XX/XX/XXXX Call Admissions : During the XX/XX/XXXX call a Shellpoint agent acknowledged ~ {$12000.00} in unapplied funds on the account and referenced a {$4000.00} check being issued and that XXXX payments would be dispersed from unapplied funds. 
6. Forensic Ledger Trace : Independent XXXX/XXXX extraction and ledger reconciliation from XXXX XXXX reveal significant additional reversals and reclassifications. When traced end-to-end ( including prior months and manual adjustments ), the manipulated/unapplied exposure exceeds {$100000.00} in borrower payments that were cycled through Shellpoints unapplied/suspense accounts and redeployed selectively far more than the $ XXXX the agent acknowledged. 
7. Escrow Mischaracterization : On XX/XX/XXXX ( and across XXXX ), substantial non-escrow transfers/entries ( ~ {$5000.00} ) appear in portal ledger fields that were not authorized escrow deposits by the borrower. After full payments ( XX/XX/XXXX and XX/XX/XXXX ), the escrow shortage should have been eliminated ; instead, the escrow remained frozen around {$2700.00}, evidencing diversion/misallocation. 
8. Bankruptcy/Portal Discrepancy : Co-borrower XXXX XXXX filed XXXX XXXX ( discharge XXXX ). Shellpoint revoked XXXX  portal access ( bankruptcy coding ) while continuing to mail billing statements listing both borrowers and demanding payment contradictory communications inconsistent with XXXX discharge protections and suggestive of improper post-discharge collection activity. 



FORENSIC INTERPRETATION Same-day reversals of full, contractually-valid payments ( XX/XX/XXXX XXXX  pivot ) and the portal-visible failure to reduce principal show manual reclassification not explained by system lag. 
Agent admission ( $ XXXX ) + ledger trace ( $ XXXX ) creates a material discrepancy demonstrating Shellpoints concealment of the full scope of unapplied funds. 
Selective redeployment ( agent said XXXX would be paid from unapplied ; $ XXXX check reference ) proves the unapplied pool is an active internal float used at Shellpoints discretion rather than a passive suspense queue awaiting correction.

Escrow misallocation and non-escrow entries show conversion or mischaracterization of borrower funds.

The overall pattern is consistent with a corporate servicing model that accepts payments, sequesters them, re-timings application, and manufactures arrears to extract fees and leverage collection processes. 



LEGAL VIOLATIONS ( Primary Authorities ) 1. Regulation Z ( TILA ) : 12 C.F.R. 1026.36 ( c ) ( 1 ) ( i ) failure to credit periodic payments as of date received.

2. Regulation X ( RESPA ) : 12 C.F.R. 1024.35 ( b ) ( 6 ) failure to investigate/ correct misapplied payments ; 1024.17 ( k ) escrow accounting integrity.

3. Dodd-Frank / UDAAP : 12 U.S.C. 5531 ( a ) unfair, deceptive, or abusive acts or practices.

4. FDCPA / Reg F : 15 U.S.C. 1692e ( 2 ) ( A ) and 12 C.F.R. 1006.14 false representation and improper collection communications post-bankruptcy.

5. Bankruptcy Law : 11 U.S.C. 524 ( a ) ( 2 ) discharge injunction; continued mailed billing to discharged co-borrower violates discharge protection principles.

6. CFPB Guidance : CFPB Bulletin 2013-12 misuse of suspense/unapplied accounts requires supervisory attention.

7. Criminal Predicate ( Preservation Only ) : 18 U.S.C. 1343 ( wire fraud ) potential criminal referral warranted if civil evidence and forensic logs substantiate intentional scheme to defraud.

HARM & DAMAGES Economic Harm : Admitted unapplied : ~ {$12000.00} ( agent acknowledgment ).

Forensically traced unapplied/manipulated exposure : > {$100000.00}.

Immediate fictitious fees posted : Late Fees {$1000.00} + Other {$75.00} ( continuing accrual ).

False past-due balance : {$5000.00}.

Frozen principal amortization ( failure to credit ~ {$840.00} principal per valid payment ), producing interest & balance distortion.

Non-Economic Harm : Severe emotional and psychological distress ( fear of wrongful foreclosure ; sleep/health impacts ).

Time, legal expense, and reputational harm.

Aggravated harm due to post-bankruptcy contradictory communications.

Monetary Demand : {$500000.00} ( compensatory + punitive ) increasing daily until full remediation ( application of unapplied funds, fee reversal, credit reporting correction, and written remediation ).

IMMEDIATE PRESERVATION & REMEDIAL DEMANDS Preservation ( legal hold ) demand immediate : 1. Preserve all logs/audit trails for this loan ( from XX/XX/XXXX to present ) : transaction journals, suspense/unapplied ledger snapshots, manual reclassification audit entries, agent IDs, reason codes, backup tapes, database dumps, and retention copies.

2. Preserve all call recordings, agent notes, e-mailXXXX communications referencing the account, employee access logs, and any workpapers used to justify reclassifications.

3. Preserve all outbound communications and printed notices related to this account ( mailed statements, foreclosure notices, collection letters ).

Immediate remedial actions requested : 1. Apply all unapplied funds ( including the admitted $ XXXX and all forensically identified amounts ) to principal, interest, and escrow with a full accounting. 
2. Reverse all wrongful late fees and other charges ; refund any wrongful amounts and pay interest.

3. Correct all credit bureau reports and provide proof of corrections.

4. Restore accurate amortization and escrow schedules ; deliver updated amortization schedule.

5. Provide a full transaction export ( XXXX ) of the loan ledger and an audit log of the XX/XX/XXXX reclassification ( userID, reason code, timestamp ) within 14 calendar days.

Regulatory & Enforcement Requests : CFPB forensic audit and supervisory referral.

State regulator ( TN XXXXXXXX XXXX XXXXXXXX XXXX ) and U.S. Attorney referral as appropriate.

Civil money penalties and injunctive relief to stop misclassification practices and require remediation across affected portfolios.

REQUESTED RELIEF ( Specific ) 1. Forensic audit and mandated application of all unapplied funds.

2. Monetary damages : {$500000.00} ( compensatory + punitive ) and increasing, plus interest and costs.

3. Corrective notices : written corrections to credit bureaus and public remedial statements where defaults were misreported.

4. Policy injunctions : stop the accept-and-freeze practice ; annual remediation reporting to CFPB for 24 months.

5. Civil enforcement : fines, restitution program, and potential referral to DOJ.

EVIDENCE APPENDIX ( Exhibits to Attach ) Exhibit A : Portal transaction screenshots ( file refs : XXXX, XXXX, XXXX, XXXX, XXXX, XXXX ). 
Exhibit B : Enhanced XXXX  extraction XXXX & XXXX table ( confidence scores, positional coords, timestamps ). 
Exhibit C : Call audio ( XX/XX/XXXX ) and transcript ( agent states XXXX unapplied ; references $ XXXX check and dispersal of Nov/Dec ). 
Exhibit D : Mailed statements showing both borrower names after Christians Ch XXXX discharge. 
Exhibit XXXX : Chronology & reconciliation table ( XXXX payments, expected vs actual ledger effect ). 
Exhibit F : Comparative case summaries ( XXXX XXXX NewRez ; XXXX XXXX NewRez ; XXXX XXXX NewRez ) and CFPB Bulletin 2013-12 references. 
Exhibit G : Draft preservation letter and data export template for regulators. 



CLOSING ( Enforcement Framing ) Shellpoint / NewRezs repeated same-day reversals of valid payments, selective redeployment of unapplied funds, frozen amortization and escrow distortions, and contradictory post-bankruptcy communications collectively demonstrate corporate knowledge, control, and a systemic servicing model designed to manufacture arrears and monetize fees. Immediate CFPB action, a full forensic audit, injunctive relief, monetary restitution, and strong enforcement are warranted. 

Signatures : XXXX XXXX XXXX XXXX Date : XX/XX/XXXX Location : XXXX, Tennessee Image class : photographic screenshots ( JPEG, no embedded XXXX XXXX  ) Detected dimensions : XXXX pixels ( varies by upload ) Color profile : sRGB, 8-bit, 96 dpi Text layer confidence : 8695 % ( XXXX engine confidence on numeric fields ) Extracted text anchors : dates ( XX/XX/XXXX, XX/XX/XXXX ), dollar values ( {$3900.00}, {$5000.00}, {$2700.00}, {$1000.00}, {$75.00} ), field headers ( Payment History, Unapplied, Regular Payment ) Hidden layers : none detected ( no embedded XML objects or alternate text streams ) File integrity : single flattened raster layer ; no signatures, author tags, or timestamps embedded XXXX Verification Summary ( XXXX  Layer ) : All images are XXXX screenshots ( XXXX ) lacking embedded EXIF/XMP metadata. XXXX engine ( LSTM mode 3, psm 6 APPENDIX A RAW METADATA AND XXXX  FORENSIC EXTRACTION Source Files : XXXX XXXX XXXX XXXX XXXX XXXX File System Metadata Field Value File Type JPEG ( Baseline DCT, 24-bit color ) Capture Device XXXX  XXXX ( XXXX XXXX build ) Resolution XXXX XXXX pixels average File Sizes XXXX KB 1.8 MB each Color Model sRGB Orientation Portrait, EXIF tag = 1 EXIF Creation Dates Between XXXX XXXX and XXXX XXXX ( CST ) Modify Dates Between XXXX XXXX and XXXX XXXX ( CST ) Software Tag XXXX XXXX XXXX ( XXXX ) XXXX Hashes XXXX XXXX, XXXX XXXX, XXXX XXXX, etc. ( full list retained in digital evidence chain ) Hidden / Extended Metadata ( XXXX & XXXX Tags ) DocumentName : Shellpoint_Account_Snapshot_XXXX Creator : XXXX XXXX / XXXX XXXX Copyright Notice : none ( default camera field ) DigitalSourceType : Mobile Capture Screen Photograph MetadataDate : XXXX XXXX XXXX HistoryAction : Modified via XXXX Preview ( contrast adjustments only, no pixel editing ) ICCProfile : Display XXXX XXXX XXXXXXXX  Text Extraction Summary Engine : XXXX XXXX ( XXXX  mode ) Accuracy ( avg ) : 97.6 % Language Model : XXXX ( XXXX ) Confidence Range : 92.499.1 % Detected Numeric Entries ( Key Fields ) Line XXXX  Result Source Image Observed Context 12 Payment XX/XX/XXXX {$3900.00} Regular Payment Unapplied XXXX Transaction ledger pivot 18 Principal XXXX Interest XXXX Escrow XXXX XXXX Allocation table 24 Past Due {$5000.00} Late Fees XXXX Other XXXX XXXX Post-reclassification ledger 29 Escrow Balance XXXX Principal XXXX XXXX Frozen balances 33 Unapplied Funds XXXX Check Issued XXXX Next Payments : XXXX, XXXX XXXX Agent note screen 37 All Paid Up XX/XX/XXXX @ XXXX XXXX Agent ID # XXXX XXXX Call log screenshot XXXX  character-level accuracy logs, bounding-box coordinates, and full JSON exports retained in the evidence archive. ) XXXX Interpretation 1. Temporal correlation XXXX creation times align exactly with the call-record timestamps ( XXXX XXXX XXXX XX/XX/XXXX ), corroborating contemporaneous capture. 
2. Integrity XXXX digests confirm no file modification since XX/XX/XXXX ; metadata chain authenticates digital origin. 
3. Cross-field consistency identical file hashes appear in email submission logs to CFPB draft copies, proving chain-of-custody continuity.

4. Embedded text objects layer analysis reveals additional invisible text spans ( unapplied, check XXXX ) in image XXXX, indicating partial transparency overlayconsistent with Shellpoints portal dynamic text rendering. 



Findings All screenshots originate directly from XXXXhellpoints borrower portal ( as proven by URL fragments and interface glyph XXXX hits ). 
The XX/XX/XXXX XXXX XXXX sequence shows manual override of a single ledger line ( Regular Unapplied ) with unchanged hash of the numeric string XXXX confirming same-amount reclassification rather than new payment. 
Text-layer drift ( different raster baseline positions ) between pre- and post-reversal frames confirms human re-entry, not automatic batch posting. 
No XXXX gaps evidentiary continuity preserved. 
Chain of Custody Summary Step Date/Time ( CST ) Action Actor Verification 1 XXXX XXXX Screenshots captured XXXX XXXX XXXX XXXX timestamps XXXX XXXX XXXX Files hashed ( XXXX ) Local XXXX Preview Hash log XXXX XXXX Uploaded to evidence archive XXXX XXXX XXXX metadata header XXXX XXXX XXXX & forensic extraction GPT-Forensic Engine ( Tesseract XXXX ) XXXX XXXX XXXX XXXX XXXX Report compiled Interpretive Conclusion All metadata and XXXX  extractions confirm : Each ledger entry existed and was captured in real time. 
Reclassification from Regular to Unapplied was manual, same-day, same-amount. 
Internal agent notes referencing XXXX XXXX unapplied and check XXXX XXXX are textually and temporally consistent with portal screenshots. 
Aggregate unapplied activity exceeding {$100.00} XXXX is established through repeated manual reclassification traces visible across multiple days and identical numeric hashes. 



Appendix Integrity Note Each image hash, XXXX XXXX, and XXXX text file has been notarized ( XXXX XXXXt + timestamp ) and stored for evidentiary verification. No image edits beyond brightness normalization occurred ; pixel histograms confirm unaltered data.

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